Binary Options Robot is a software that allows inexperienced derivatives traders to invest in the derivatives market, where the robot makes decisions for the investor. The software has an inbuilt auto trading mechanisms that executes the trades on your behalf.
The software works by analyzing the real time market trend of the security and performs complex calculations on the trade indicators. The indicators will signal the software to ‘call’ or ‘put’ the options. The software will then trade according to the signal and usually generates a fair amount of profit.
Normally, derivatives trading are done by experienced traders who can predict market trends and can perform the complex calculations through special software for derivative securities. The binary options robot automates the process and tends to provide good results. However, there are scam software which will charge fees and promise great results but fail to deliver. So if you want to be wise about your investment, it’d help to know which robots are scam and which ones work.
- The accuracy rates are not the bible
While most bots like to guarantee an 80% or above accuracy rate, the only time that happens is when the bot is on a winning streak. In reality, derivatives trading are a complex business and rely on several real time indicators which are totally unpredictable. So it would be wise not to put complete faith in the guarantee rates.
- The broker behind the software
The scam software usually creates an account on your behalf under a disreputable or unlicensed broker. These are the ones which don’t give you control on which type of security you should buy and just promises a steady stream of money while the investor does nothing. Proper binary options robot usually gives you a choice of brokers along with their credentials.
Instead of giving some unknown broker control and access to your bank account on blind faith, good software’s provide the investor control over their investment, which includes the quality of brokers making decisions behind the software.
- The level of customization allowed by the robot
Once again, it is completely unwise to totally rely on a software to manage your money for you. Derivatives trading runs on extremely unpredictable scenarios and no amount of experience can guarantee consistent payout. So if a software promises to do everything for you while you just hand over your money, then you know that it’s a scam. A good software provides you choices – choices on the options, the risk etc. so that you have control over your investment.
You can’t jump in the derivatives market without any prior knowledge on how the market works, because fraudulent software’s are widely prevalent and rely on inexperienced investors who are interested in derivatives trading, who are willing to give complete control over their bank accounts so that a shady broker can play in the market.
It is highly recommended that the investor gain some prior knowledge on derivatives trading before relying on a software, so that the investor makes informed decisions. Also, a good thorough research on the options trading software along with reviews and past performance history goes a long way in giving a realistic idea on what to expect from the software.
Third party reviews help greatly because they usually give the pros and cons of the software for the benefit of potential users. Taking stock of user complaints is also important because they can give you an idea about the software’s limitations. If the software is genuine, then it can actually help the investor in making complicated decisions regarding their investment, therefore picking the right software is crucial.