The clamor for financial reform has resulted in the Dodd-Frank Act being passing into law in 2010. However, regulation for binary options trading is not explicit in the implementing rules and guidelines although proposals for rule changes have been discussed in the Securities and Exchange Commission (SEC) and predate the creation of the Dodd-Frank Act. For now and until the rules are in place, prudence in this investment area will always be your biggest safety net.Forbes columnist Gordon Pape issued a strong warning against binary options. He claims that this form of trading appeals to the online poker crowd and market junkies who tend to be more exuberant in taking chances than the ordinary investor. In fact, he refuses to acknowledge binary options trading as legitimate investment. He insists that it is a pure gambling activity where the odds are stacked against the investor.Gordon Pape claims, as do others, that you need to win 54.5 of the time to just break even. For some, these odds are good enough, even if the house gets the better deal. For the house, its like having hundreds of slot machines that wont ever pay out a jackpot. For the investor, on the other hand, binary options multiplies his chances of winning each time he cranks the machine. Not the jackpot, maybe, but big enough if one keeps at it and does the homework.Diligent market analysis is the key to achieving good profits from binary options. Its really not that complicated to invest and its certainly not that hard to double the returns from your investments as long as you are guided accordingly. Trusting an optionfair review site ouroptionfairreview to give you reliable information will give you more chances of making a profit out of a good market speculation.Hi Alex,Thanks for that options review I just read. Its nice to know that there are still some people out there who are honest to say the real score in binary options. You mentioned about some sites who are engaging in unfair acts. Do you happen to know which sites are legitimate so as to protect those who would like to make a sizeable investmentYou can use these tags:a href abbr acronym b blockquote cite cite code del datetime em i q cite s strike strongUnlike traditional options, which have value before the expiration date, binary options trades are final (you can not sell them before expiration). A trader can not sell a position, and once a trade is taken it is considered a final decision. A trader must hold the trade until the option expires without exception. The time until expiration is different for each trade, and is determined by the brokerage. Always consider the time to expiration before entering into a trade, because a trade must be in the money at the precise time of expiration for it to be of value. If the trade is below the strike price at the time of expiration, the trade will expire worthless.The binary option industry has carved out a niche based upon the human need for instant gratification. Most brokers dangle trades in front of traders as short as 30 seconds. This gives a trader the opportunity to make up to 80 profit in less than a minute This sounds fantastic, and it can be, but unless you have a system or a read as a trader to make money in 30 second time frames, it is a losing proposition for you. If you do have a system or read which is capable of some degree of predictability ona trade on a very short basis, make sure that you are sizing your positions appropriately. If you are taking many positions in a short period of time, you have the ability to lose (or earn) a lot of money very quickly. While the ability to take short time period positions is useful, a trader must manage this carefully.The most common time period for binary options trades are between one and five minutes. The brokerage will display the time period on each trade, and it is up to the trader to monitor these and to ensure that they are entering into a trade for the desired period of time.Some brokerages offer traders for a period of a month or longer. Before entering into this type of trade, be mindful that your capital is tied up until the expiration date. A binary option position can not be sold for value once entered into. This type of trade can be useful for someone who has very high conviction on the direction of a security over a long period of time. As binary option trading expands, more trades of longer time periods are likely to be made available to traders.Longer trades are typically offered with foreign currency transactions. This is largely because foreign exchange traders rarely have a short term read on the direction of a currency, but based upon macro-economic factors traders may have more conviction on longer term trades. While foreign currency trades are most common for long term trades, they may also be offered in commodities such as oil, gold, and silver prices, or in some stocks.When you are attempting to carry out the binary options trading, you will come across many terms and phrases that you have not heard in your life before. It is very important for you to know some of the common terms and phrases used in binary options trading before stepping into the binary options trading league.The asset is the item that you are trading on and is often referred to as the underlying asset. The examples of assets include: Commodities (Gold, Silver, Oil, etc.), Currency pairs (USD/EUR, USD/GBP, etc.), Indices (Dow Jones, SampP 500, etc.) and Stocks (Google Inc, BMW, Mercedes Benz, etc.)Binary options or digital options or all-or-nothing options give you only two outcomes, either you win or you lose and hence it is termed as binary. The trader will predict the direction of the trade for a particular asset or security and the payouts is fixed after the asset meets or exceeds the predetermined threshold price.One of the basic ways to evaluate stocks is the fundamental analysis. This analysis is on the basis of the current political and economic data.
