There are many trading strategies in the investment world. Many of these strategies are used by people and many of them are also not used. What makes these unused strategies still live in markets? It is the traders’ greed and their choice to make money faster in Forex and to get rich. In this article, we are going to tell you about such one strategy. This strategy is called binary trading and though it can be profitable for the trader, it has a very strict regulation in the Forex industry. There are some countries which have their own bodies to govern the binary trading of Forex market. Why is this strategy so strictly regulated? You will find out as you read this article.
First, know what is binary trading
Binary trading has got its name after the result of its trade. We know that in the computer, it cannot understand human language. The program of the computer is written in machine language and it only understands 0 and 1. Every command and program of the computer is interpreted by the machines by only 0 and 1. The result of binary trading is also fixed like the computer. If you trade on binary strategy, you will find that you will lose the market or win in Forex. There is no other result in binary and it is fixed. This is why this strategy is called binary strategy for its result like the computer language.
Why is it strictly regulated?
Not all countries are free to allow the traders to use this strategy. As this market is widespread, it is hard for the Forex bodies to regulate binary trading. There are many bodies of investment industry which look out the market and if there is any sign of binary trading, they close this market. However, if you look at the elite class broker like Saxo in the Forex trading industry then you can trade options and Forex from a single trading account. They have done all the hard work to clear up all the legal works. For this very reason most of the expert traders in Singapore trade with this broker.
But it is not illegal. Many traders are trading in binary strategy and brokers are also offering this strategy. All traders know the risks in binary trading and still, they are using it to make a profit. There are no other things and you can make or lose money. This simple result of binary trading has made it popular in Forex traders. Also, it has made it suspicious under the Forex bodies and it is regulated to stop any scam in Forex under the disguise of binary trading.
Smaller time frame trading
If you want to trade the binary option then you need to learn about lower time frame trading. Lower time frame trading might seem easy to you but it is one toughest task for the traders. You need to learn about multiple time frame analysis so that you can easily find the best quality trading signals. Learning the multiple time frame analysis and find the quality signals is not all easy. You have to have a strong foundation in the financial sector and most importantly you need to love this industry.
No matter which profession you chose you to need to be passionate about your work. If you don’t love what you do then it’s really hard for you to make any real progress. Success is so hard that any rational person will give up by facing the hard obstacles. But once you start taking down all the problems one by one you find a rhythm in life. You won’t have to worry about financial crisis anymore. Once you develop yourself as a profitable trader then the sky is the limit for your potential earning.