This binary options risk warning notice is meant to make you aware of all potential risks involved in this trading process. Before you finally decide to participate in this trading, you should know that trading in binary options is a high risk financial investment. This is why not all investors are considered suitable for this type of trading. Take a look at the terms and conditions section at the website of the binary options broker of your choice, and be aware of all types of risk.
Binary options are considered high risk financial products. This is why we suggest participating in this trading only if investors have a good risk bearing capacity. You are advised to enter the binary options market only if you have enough finance to backup your losses and you can monitor the trading process.
TechShares.co.uk does not bear responsibility for any losses that an investor may incur with the trading. Binary options trading needs an investor to have enough amount of risk capital, which is basically the money he/she can afford to lose. It is very important for any aspiring trader to remember that the binary options trading market is a highly speculative market. Your knowledge and information about a particular asset are very much responsible for your success. Before you open an account with an binary option broker and consider trading this financial product, please go through all reading materials available on the site of your broker to have a clear understanding of the nature of the trading and risk involved.
Binary Options Contract Conditions
The binary options trading allows you to make profits through a simple “yes or no” approach. The stock, commodity or index you decide to trade has to reach a certain price before the time of expiry. In this case, a trader might choose to be optimistic and set a higher future price of the security, or vice versa. The trader also has to choose an expiry time. If the price of the stock or commodity meets your prediction before the time expires, you earn a profit. As you can imagine, it is a game of accuracy of prediction. The more accurate you are, the better will be your performance. Before you start with binary option trading, it is very important that you know all price calculations and conditions set by our company are based on some complex arithmetic calculations. When you open a binary options account with us, you sign up for a contract which can only be closed with us and can not be transferred to any third party.
When you mutually agree to open an account with us and adhere to all terms and conditions, we take it as your sole condolence to the fact that trading in binary options is highly speculative and thus you are ready to bear the loss of your entire investment if it incurs.
Risks Due to Market Fluctuations
Although the price at which you trade the assets in the market is set by a specific algorithm developed by our company, you should also know that the prices are also derived by us from the main market. Therefore, any following fluctuation in the market can increase your risk of trading.
Price Volatility: An extremely volatile and unpredictable price can have a huge impact on your profit and loss.
Market Swings: A significant market swing can also increase your chances of investment loss. This can happen if suddenly a news of economic instability or a market announcement emerges when the market is closed. It can swing an unexpected shift in the asset price when the market reopens. You will have no option to close your trade in between, which can result a significant loss.
Liquidity of the Market: Your investment may have to go through significant uncertainty if a sudden change takes place in the market liquidity.
Binary Options Trading Requires Knowledge of Internet and Electronic Communication
Although our binary options trading platform relies on a high speed and secured internet connection, we solely do not assure an uninterrupted service as internet or electronic communication also might appear to be quite disappointing at times.