What is a risk free trade? In Binary Options World a risk free trade is like a cash back deal which will protect you from losing money! When you place a risk free trade, if the outcome of the trade is not positive (i.e. you bet in the wrong direction) instead of losing your investment on that trade, the broker will cover your loss – you will receive your money back for a second chance. In contrast, if the outcome of the trade is positive (i.e. you bet in the correct direction) you are free to keep the profits that result from the trade. Risk free trades provide traders with an opportunity to participate in the binary options market without putting their capital at risk.