Binary Options Bonus Explained
Brokers attract traders with binary options bonuses. However, this should not be the primary reason for you to make a choice if you will sign up with a trading site or not. You have to gauge your competence, patience and willingness to learn because trading binary options is not for everyone and is not all about collecting winnings. It is also about losing. Therefore, your focus should not be about bonuses, but on making time to study, analyze and develop your own strategies. However, the efficiency of your trading tactics depends on your broker, as well as the terms and conditions stipulated in the site.
How Brokers’ Terms Affect Your Trading Style
If you have not been trading binary options for a considerable amount of time, you may think this is not possible – but it is. However, the effect can be positive or negative thus a technical trader does not create strategies based on binary options bonus; he makes decisions founded on charting and analysis. A scalper, on the other hand, should see to it that the site provides a wide variety of open positions even before being shut down by the risk manager.
Nothing Comes for Free
You see binary options bonus as free. You may get excited with different and unbelievable bonuses and treat them as something that is given to you without a cost – when the truth is this: You open an account and you are given a binary options bonuses. This is because you invest your money. So technically it’s not free; it involves risk because losing your money is possible (same with winning).
What You Need to Know about Binary Options Bonus
Let’s take for instance that you will open a trading account and you make an initial deposit of $1,000 and the broker offers you 50% of your initial deposit as bonus. This therefore increases your trading money to $1,500. So what should you realize at this point?
Did you know that if you are not content with the bonus given you by the broker you can politely request for something that you find more rewarding? This is not saying that the company will grant your wish. However, it is possible that you will be offered a better deal.
Bear in mind that you can’t withdraw your bonus money – unless you’ll be able to trade money 15 times bigger than the binary options bonus you get. This means that if you get $500 as bonus, you have to be ready to trade $7,500 to allow you to get your bonus money. Isn’t that a huge risk to take, particularly if your initial deposit is set at the minimum and if you are not an expert trader? But if you have the financial capacity to do it and you think you are already well-equipped with knowledge to trade successfully, you can try achieving this trading volume.
Learn to read and understand terms and conditions set forth by the trading site. You may discover that bonuses given are set to a maximum. For instance, you may have invested $10,000 and you expect to get 50% of this – only to be disappointed in the end because $5,000 worth of bonus is not allowed, as stated in the bonus cap. This cap is to protect both the broker and the trader.
Broker – Bonus can be abused by some traders. To protect regular traders, as well as the broker itself, it sets strict guidelines.
Trader – You, as a trader, must have complete power over your bonus. You can opt to take or reject it. Most of the time, a smaller binary options bonus is better to allow you to meet the required trading volume.