Real insights into binary options trading: The risks you need to be aware of

In recent years, binary options trading (Binary Option) has become a popular investment choice in Vietnam. With a simple interface and promises of quick profits, many new investors inadvertently enter a high-risk game with more unfavorable conditions than they imagine.

How Binary Options Work

Binary Option is a financial tool that allows you to predict whether the price of an asset will go up or down within a specific period. Instead of buying or selling the actual asset, you only need to predict its movement direction.

For example: You can predict how the price of Bitcoin, EUR/USD, Google stock, or gold will behave after 60 seconds or one minute. If your prediction is correct, you earn a profit of 70-95% on your invested amount. For example: investing $100 could bring back $170-$195.

However, this structure has a “binary” characteristic - there are only two outcomes: win everything or lose everything. There is no gray area or compromise. That is also why this type of trading is called “binary options.”

Reasons Why Countries Ban Binary Options

It is no coincidence that many countries, including developed nations, have banned or restricted binary options trading. The main reasons include:

Asymmetric Information: Most Binary Option brokers are designed to always have the advantage. Regardless of how many times traders win, brokers still have mechanisms to make money from each transaction.

Large-scale scams: Many companies claim to be “licensed” but in reality operate illegally. They use multi-level marketing models, solicit through social media, and actively call to lure customers to deposit money.

System manipulation: According to SEC (U.S. Securities and Exchange Commission) reports, there are many complaints related to:

• Refusal to allow customers to withdraw their profits
• Collecting and selling users’ personal information
• Manipulating software to extend expiration times when trades are winning, turning them into losses

Unspoken Truths

Probabilities are always against you: When trading Binary Options, you not only need to predict the correct direction of the price. You also have to predict timing, volatility, and market trend simultaneously.

For example: What is the probability that the gold price $1760 will increase from $1761 exactly in 1 minute? That probability is very low, and it is factored into each trade.

Traders often lose: Although some traders make profits from Binary Options, most end up losing. And when someone wins, it is often due to luck rather than skill.

Gambling psychology: After winning a few times, new traders often believe they are “smart” enough to predict the market. They increase their bets, trade continuously, and eventually lose everything.

Forex: An Alternative Solution

If you are interested in financial trading, Forex (giao dịch ngoại hối) is a more practical option:

Forex operates 24 hours a day, 5 days a week, allowing you to respond quickly to global events and market news. You can also apply technical analysis skills to participate in the world’s largest financial market.

Smart Trader’s Choice

Trading binary options and Forex are both forms of financial investment, but they have completely different structures. The choice should depend on:

• Is the binary platform licensed by a major financial authority? )Note: Many “licenses” are fake
• Are you willing to risk losing your entire investment?
• Do you have time to learn real market analysis skills?

If your goal is to develop real and long-term trading skills, choose Forex. If you just want to “play” with money you are willing to lose, binary options might be an option, but remember: it’s gambling, not investing.

Protect yourself. Learn, understand the risks, and choose an investment method that truly aligns with your goals.