Is Binary options trading safe?

B inary options trading is a method of investing in which you bet on a financial asset's value during a set period of time. The payout is all-or-nothing. In a binary trade, only two results are possible. If you predict the asset's value correctly, you'll receive a set payout. If you predict incorrectly, you'll lose what you've bet. Each trade is very fast - a bet usually lasts between a few minutes and several hours, but sometimes takes place over a few days or weeks. The major benefit is that binary options trading is easy to comprehend. You don't need to understand everything about the stock market, and it's not necessary to precisely predict the behavior of the market -- just whether the asset's value increases or decreases. Binary options trading is low-risk in the sense that you can't lose more than you’ve put in, even in a market crash. You simply make broad guesses and manage the risks you're taking in each trade. There are downsides, though. The exchange will often take a small cut of your winnings, usually leaving you with 70 to 90 percent. Additionally, markets behave erratically over short periods of time, so there is an element of luck in picking the right time to trade. And binary trading is not as heavily regulated as other types of investment: binary trading is considered gambling, so there are few, if any, protections offered by the Financial Conduct Authority if you fall victim to fraud. But if you use trustworthy services, binary options trading is an easy and reliable way of trading.