What is Trading?
It is a method in which the person buys and sells things. In this world, everyone wants or has to buy things which are essential for day to day life, hence trading plays an important role in everyone’s life.
In this process, one person works as a broker between two parties. Here two parties mean seller and buyer. The buyer buys things from the seller with the help of a broker.
Now we will see about Binary Trading
The name “binary” itself indicates that “two” , in computer language it is 0 or 1 but in our day to day life we can consider it more or less as “Yes” or “No”. In this process, the investors or traders invest some amount of money on the things in the market via brokers. The things on which the people can invest such as Gold, Crude oil etc, and on the currencies.
Let’s take up an example for Binary Trading
One can make a prediction that the price of crude oil in the market may increase or not.
Consider the price for crude oil on that day is about 200000Rs, the prediction may be about 5000Rs increase at the end of the day, the traders have the option to bet whether the price may increase or decrease.
The trader bets some money through brokers say the traders gives the 10% commission to the broker if the prediction of the investor is correct then he gets 10% + the amount he has invested for this.
In case prediction was wrong then the investor gets no money but the broker who is between the parties gets 10% commission from the investors.
In this system each and every second is counted, we can say it is more or less likely the betting process in which the person who has invested can get a profit out of it or he may be in the loss but the chain of the process always goes on. So, the pre-assessment should be done carefully and should be perfect.
Hence, this perfection during the prediction can fetch more money for the traders.
The trading process may end in a day, or next day or even in an hour but what counts is whether the trader has predicted correctly or not.
Hence complete knowledge about what, how, when, and where you are investing money is very important.
Now the question arises that do we make money out of it?
Yes, we can make money out of it provided the strategies used are perfect.
Hence for making any investment everyone should have the knowledge of the previous transactions and the complete knowledge of the company in which they are investing.
So that there should not be any mistakes during the prediction of the values. Hence, not only investing money is important but also the knowledge about how to place a bet is also very important.
As we are seeing so many scams in every area, so one should be aware of these scams and who, how, and what has to be done. So, investors should invest money on trusted parties and in a very secure manner.
I suggest not to trust some third party which may end up to put you in some scams.
Hence, knowing about the company is as important as you invest in it.
Now, the critical situation arose in pandemic disease COVID-19 spreading where the cyber experts take all these advantages to somehow hack the juicy or important credential of the person and gets most benefits out of it.
So, every investor or trader should be aware of these hacking experts and secure their transactions.
More About SEC
When we talk about secure binary trading we will come across the commission called SEC which stands for “SECURITIES AND EXCHANGE COMMISSION” established in the United States Of America.
The main objective of this commission is to provide security against frauds. This commission also provides security even to the firms who are dealing with trading.
Hence the people can trust these kinds of commissions and invest their money for trading where security for the investments has more importance.
In this commission, each and everything has its own rules and regulation to be followed hence the security is achieved against fraudulent.
The SEC Commission has 5 divisions and 24 offices-
- Division of Corporate Finance- In this division, each and every investor should have a copy of the material issued by the company so that the investors must inform about investment decisions.
- Division of enforcement- In this division, enforcing SEC regulations has been done.
- Division of Investment Management- In this division, managing investment made by the investors or the company has been done.
- Division of Economic and risk analysis- Each and every trading has its own risk hence analyzing the risk and put the best to it is very important. Hence, in SEC risk analysis and managing economics of the commission plays a major role in trading.
- Division of trading and marketing- It is very important to establish and maintain fair decisions among the investors so this division is carefully done by this commission.
Hence, the people who are willing to invest their money in some company should be aware of rules and regulations followed by the committee and should know whether the company is secure or fraudulent.
SEC is one of the trusted parties where people can invest their money securely and make the best use from it. In addition to this commission, there are many trusted parties to which people can invest their money happily.
However, it is there in people’s hands to get the best benefit out of any investment.
In binary trading, the not only prediction is very important but also the knowledge of the how secure is your transaction plays a major role. Hence, trust the secured party and invest for them securely.