How Can You Reduce The Risk Of Binary Options?Irit Rutenbergupdated May 20, 2012TweetAt GET.com we maintain complete editorial integrity on our content & provide transparent & unbiased information. Companies don't pay us to include their products although we receive a compensation when you successfully apply to products from our partners. See how we make money here.At GET.com we maintain complete editorial integrity.By ForexMansion.com Many beginners in binary options fear the fact that the trade is risky. However, you don’t have to worry as there are ways that you can adapt to reduce the risk of binary options trading. Whether you are a newbie or pro on binary options trading, here are important tips to reduce the risk of losing a contract.Binary hedging This is one of the best ways to reduce the risk of binary options especially if you are trading with a deep in the money asset. Binary hedging basically refers to a practice where the trader examines the market of an asset, when a gap opens between the opening and the closing price. If the gap is initial gap is favorable, then you can call on another asset. This means that you will have a call and a put, where you can make a bigger profit if the prices rise or a reduced loss if the prices drop.Reduce the risk with the bonus cash The other way to reduce the risk is by wisely using the cash bonuses offered by binary options brokers. Most of these brokers will provide you with bonus cash when you create your account. You can use these cash bonus purchasing assets in small quantity. Although it will earn you a small profit, the profit can accumulate with time.Early closure options The other way investors reduce the risk of binary options is by closing contracts early before they mature. This is a move allowed by all brokers. For example, if you purchased an asset and after sometime realize the closing price is going downwards, you can avoid further losses by closing the contracts prematurely. Again, if the closing price is rising but anticipate that it may drop in the next few minutes, you can earn the current profit by closing the contract early. These are three important steps you can follow to reduce the risk of binary options. In fact, with these steps, you will find that binary options trading is less risky. Applying these steps starts by you choosing the best binary options broker. To join the new binary options community check http://forums.binaryoptionsthatsuck.com/ Originally posted hereAbout ForexMansion.com: The Finance Mansion Network operates a global financial network of websites including ForexMansion.com – All about Forex Trading. Our goal is to provide our readers with the highest quality, most accurate and timely technical analyses, fundamental analyses and news, assisting them to make the best possible financial decisions. More websites from the Finance Mansion Network: www.golddow.com, www.exchangerategraph.org, www.oilpricesforecast.com and www.forexnodepositbonus.com. Editorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.