If you have ever visited a forum hoping to get information about binary options trading, you may have encountered certain types of individuals. These are people who rant and rage against binary options trading, condemning. Some may even go so far to call them scams or a mechanism where the outcome is engineered.
If you read enough of these you may begin to wonder if binary options are rigged.
You will be happy to learn that binary options trading is certainly not fixed or rigged in anyway. Of course, this may open the door to another query regarding why some people may think so. Well, here are some of the factors that cause such the perpetuation of such a notion:
1) The Nature of the Trading
One of the reasons that many people may be questioning the legitimacy of this form of trading is because of what it entails. In short, it is due to the all-or-nothing tendency of binary options trading. If you win your trade, you get your investment back in addition to a profit. If you lose the trade, all of your money is gone. This is not something that people are used and is certainly not something that they are comfortable with.
Now, when you add this to the fact that sometimes, traders may experience a losing streak. Despite having a strategy in place and carefully examining the market, they may lose out on several consecutive trades. There is nothing abnormal about this and it is common enough with other forms of trading as well. However, so much of continuing loss can cause many traders to feel as though they are playing a fixed game.
2) Unscrupulous Brokers
Despite what many people may have you believe, not all binary options brokers are scam artists. At the same time, there are many out there who are fraudulent and who have scammed people out of their money. Due to false advertising, it can often seem as though the fake brokers outnumber the authentic ones.
In turn, this causes individuals to believe that all of the brokers are fake and by comparison, the entire trading system as well. While this is not true, it has happened enough of times for people to be cautious. Nonetheless, as long as you stick with reputable and licensed brokers, you should be able to negate this risk.
3) Inexperienced Traders
A persistent theme here is unverified facts and false beliefs. Well, adding to the list is that many traders do not fully understand binary options trading. It can appear to be quite easy and as a result, many may feel as though they don’t need any preparation.
In particular, they may jump right in without any practice or any strategies in place. To do so, will result in traders losing a majority of the time. While they may get lucky every now and then, they will typically experience more losses than wins. If this pattern continues, they will feel as though the broker is purposely hindering their success.
You now know that binary options are not rigged. You are also aware of the reasons that people may feel as though this type of trading is fraudulent or deceitful.