With the lure of big profits in a short time, and can be used by beginners, binary options are suddenly loved by the public. Why are binary options banned?

What are binary options? And how does it work?

Binary options are a form of online trading instrument where traders predict or guess the price of an asset to rise or fall over a certain period of time.  How to play binary options is actually quite easy and simple. Users only need to register with a binary options provider and make a deposit. The deposit amount at each provider varies, but it is generally $10.

In the transaction, users will choose asset indices, ranging from currencies, stock indices, to commodities.  After selecting the asset index, the next user enters the capital to be staked. The minimum amount of capital used depends on the asset. Then the binary options application will calculate the potential profit obtained from the transaction. The range is quite diverse, ranging from 60% to 90%. Then, users choose various transaction durations, ranging from per second, minute, hour, or day.

Finally, the user is required to guess within the selected duration, whether at the end of the duration, the index price is above or below the price when starting the transaction. If the guess is correct, the user will make a profit. But if it is wrong, then the capital used will be forfeited and the user will lose.  In binary trading, there are several terms that are different from those in forex, including call or high (if the price is expected to rise) and put or low (if the price is expected to fall)
In addition, there is also the term in-the-money if the transaction is profitable or out-of-money if the forecast is wrong. The amount of profit also depends on the number paid by the broker to the trader.  There are several binary trading services that can be used by the public ranging from Binary.com, Olymp Trade, IQOption.com, Binomo.
 
However, some of these sites cannot be accessed without using a VPN. There is a clear difference between trading forex and binary options, both in the trading system and the trading method. For example, for trading in forex, there is a leverage margin and spread, while in binary trading there is none.

Mengapa Anda tidak disarankan untuk investasi di binary option?

Banyak orang yang tidak menyadari bahwa binary option memiliki banyak hal yang justru merugikan. Berikut beberapa alasannya.

1. Regulasi

Bagi yang terbiasa melakukan trading saham atau forex tentu tahu pentingnya regulasi dari broker. Broker saham atau forex yang legal tentunya harus diregulasi oleh badan pemerintah negaranya masing-masing. Jika broker di Indonesia harus teregulasi oleh Bappebti, maka broker luar negeri harus teregulasi oleh lembaga berwenang di negaranya seperti FCA (Inggris), ASIC (Australia), CFTC dan NFA (AS).  Semua binary option tidak ada yang teregulasi di bawah institusi negara.

Walaupun mereka mengaku teregulasi, paling hanya di bawah organisasi non pemerintah tertentu atau di bawah organisasi judi. Tanpa didukung regulasi yang ketat dari pemerintah atau lembaga resmi bernegara, maka biasanya akan berujung pada scam atau fraud. Trading jenis ini dilarang di banyak negara sebagai bentuk perjudian. FBI dikabarkan sedang menyelidiki penipuan binary option di seluruh dunia.

Otoritas Sekuritas dan Pasar Eropa (ESMA) telah melarang perdagangan binary option. Pada 30 Januari 2018, Facebook melarang iklan untuk perdagangan binary option. Google dan Twitter mengumumkan larangan serupa di minggu-minggu berikutnya. Di negara maju binary option itu tidak laku dan justru dilarang dan saat ini banyak yang  mengincar nasabah di dunia kedua atau dunia ketiga yang awam.

 2. Trading melawan broker binary

Di binary option, trader selalu trading melawan brokernya sendiri. Seperti Anda datang ke kasino lalu berjudi melawan kasino itu sendiri (house). Tidak ada yang bisa menang melawan house. Mungkin sesekali bisa menang, tapi tidak dalam jangka panjang. House bisa berbuat apapun, karena ia yang mengontrol semuanya.

 3. Your profits are limited

Remember the payouts in binary options? With minimal payouts, below 100%, it means that the trader's ability to make profits is castrated. Thus the risk taken by binary options traders is always greater than the reward. The risk to reward ratio in BO is always detrimental to the trader. For example, a payout of 60%, means that the risk to reward ratio is 1 : 0.6.
 
Sacrifice one only to get 0.6 (if you can). Unlike stock or forex trading where there is no limit to the profits that can be made. The risk to reward ratio can be 1:2 or 1:3 or 1:4 and so on. With such a risk to reward ratio in BO, in the long run binary options traders will tend to suffer losses.

 4. Can't manage risk

Trading stocks or forex can manage their own risks. You can take a small proportion of risk compared to capital, by setting a stop loss or cut loss. On the other hand, binary options traders cannot do that. The risk taken is always maximum, meaning that 100% of the money used to open a position will run out if you lose.

 5. Can't save yourself if you make the wrong prediction

Stock or forex traders, after opening a position, can act if, for example, the market does not move according to their expectations. He can close trading positions early, with minimal losses. On the other hand, binary options traders cannot do anything. He can only wait for his money to run out if the market does not move according to his expectations.

Want safe, legal, and profitable trading?

Think a thousand times if there is someone close to you who invites you to invest in binary options. If you want an investment that can be profitable and fast, you can choose forex trading. The easiest way to trade forex is to choose the right place to invest, safely, and conveniently. Let's get acquainted with GIC. Unlike other conventional brokerage firms, GIC through the GICTrade platform provides a solution for traders who do not want to be charged with high trading fees.
GICTrade is a peer-to-peer trading platform that brings together traders and market makers. So, what is special about GICTrade? As a platform that brings together traders and market makers, you as a potential customer can certainly choose between the two, namely becoming a trader or a market maker.  GICTrade's role as a transaction venue provider can minimize costs and help maximize profits for traders and market makers as well as create a fair transaction atmosphere and results.
Traders will benefit from the absence of commission fees and low swap fees and spreads due to the presence of market makers as liquidity providers.  You can also join the trader community on GICtrade's Telegram to ask fellow traders directly about their trading experience.
 
Also follow GIC Instagram to get webinar information and various attractive prizes. In addition, on YouTube GIC, traders can also learn to trade for free! What are you waiting for? Get more features that fully support you to start investing and trading forex through GIC. Make transactions simpler, safer, and more profitable. Start by creating a demo account.