The concept of binary trading, as such, looks brilliant both from commercial aspect as well as from a trader's perspective. However, there are some scintillating questions which are never answered in a convincing manner. The most important of those is how is the risk managed by the company. Since 70%+ is paid every time, how does the company hedge their position or what arrangement is made to ensure payment? Unfortunately, even though it is not connected to trading of binary option, still, it poses a major disadvantage. After all, a trader analyses and executes a trade bearing the risk in return for exciting returns. If there is no guarantee for the repayment of profits, then it puts a big question mark on the entire system, irrespective of how lucrative it is. The binary options trading concept is still in a nascent stage. A week before another Israel based well known binary option company had fired its employees and shutter was brought down. The irony is that they received clearance from Cyprus regulators only a month back. As long as such issues plague options trading business, established traders will shy away from it. More work is needed on the part of the broker to cultivate confidence among traders.
