How To Get Risk Free Trades.
Risk free trades are popular promotional benefits, offered by binary brokers to their traders as incentives to deposit higher amounts on their trading accounts or join their promo campaigns. Traders have always been looking for possible ways if not to eliminate, but at least to mitigate risks, associated with trading on financial market, and Risk free trades provide traders with excellent opportunity to enter the binary options market without putting their capital at risk.
Risk free trades, which also are referred to as insured trades, mean that if a trader makes a wrong prediction of the price movement and the trade closes out-of-the-money, the amount of his trade will be returned to his trading account by the broker within short period of time. Therefore, instead of losing your investment on that trade, your broker will cover your loss at his own expense. If you end up closing the trade in-the-money, you just keep the profit, generated by this trade without any restrictions. So, for a trader any Risk free trade is a win-win situation, as in the event of loss his account is not negatively affected, basically as if that trade never had been placed.
For example, if you place 4 trades, 2 of which are Risk free trades, you significantly increase your chances to net nice profit even if 2 of these four trades close out-of-the-money. Let’s say, you lose 2 first trades and win 2 trades. You will keep the profit of your winning trades and your risk free losing trades won’t affect your trading account, as your balance will be restored to the state it was before you have placed those losing trades, so you will have another chance to open winning positions. If this time you win one trade and lose the second one – your overall score will be 3-1, which is already a good return, because when you are placing Risk free trades you do not have to stay within usual risk management boundaries and may invest as much money in your Risk free trades as your broker allows you.
Another great benefit of Risk free trades is that they provide a fantastic opportunity for getting started with binary options trading in a way that prevents you from incurring immediate loss, which is very helpful for beginner traders and those who are new to a particular broker and are not yet used to the new platform settings.
Risk free trades are great promotional benefits. Their purpose it to attract new traders and motivate existing ones, but you have to remember that normally Risk free trades come with some conditions. For example, brokers typically limit the number of Risk free trades they are willing to provide, and the amounts, which will be covered in the event of loss. Number of Risk free trades vary from 1 to 5 in average, depending on the account type and the broker. Maximum amount of the coverage is set by the broker. For example, PrimeTime Finance broker offers up to 3 Risk free trades, which one covering up to $300 Euro in the event of loss.
It is always recommended to ask your broker about availability of Risk free trades and their conditions. Even if you are an expert trader, several trades protected from loss can boost your account balance and expand your risk management boundaries for further trading. Here at YourBinary Option we select and test the best binary options Risk free trades packages, offered by the leading binary brokers. Read our reviews to find out more.