Binary option trading has gained popularity over the past few years as a high alternative for traders who are longing for convenience and high returns. Like the other trading options, there are always some upsides and downsides associated with each type of trading. However, with this kind of trading, you’re suggested to check out your return on investment before making any investment, providing you an idea on how to make a right prediction to receive a great profit from trading.

There is no doubt that Binary option trading is a particularly fascinating and exciting activity which has a range of advantages, but as we already mentioned there are some disadvantages are also associated with this trading and you must be familiar with these disadvantages before taking a step forward.

Things which you must be aware of

• High risk: Brokers make profit by trading binary options from once traders end out-of-the-money. Though brokers provide a small sum of this amount to the traders in such cases. The traders can convert this amount into their favor by two successful ways- one is hedging and other is by study.
  
• Decrease trading odds for sure banker’s trades: The payout rates of binary options trades are automatically reduced when the odds for that trade are really high. Most of the brokers offer a payout rate up to 85% per trade, but these payout rates are only possible if the trade comes with the expiry date set. In such situations, it becomes difficult to make a right prediction.
  
• Simple but not easy: Learning the facts of binary options trading is very simple but it doesn’t mean that it is also easy to make a big profit by trading them. In this trade, there are some winners and losers, which mean that not everyone can win at this trading. It requires a strong knowledge of trading tools, and trading strategies.
  
• Lack of trading tools: Most of the binary options brokers   provide very few trading tools to the traders. If you wish to trade successfully in binary options trading, it is essential that you must use some trading tools like some quality charts, graphs and some analysis tools which can assist them in making better trading decisions.
  
• Dishonest broker: There are many online brokers are available online who claims to be the best service providers. But, not all the brokers stand on their words. There are many fake binary options brokers are available who misguide the new traders.

All these disadvantages are manageable, but you must keep all the above points into consideration while entering into the binary options trading.