Why Trade in Binary Options
The world of trading has always been an exciting one where everyone strives to earn the maximum profits, reduce losses through various strategies, and stay a step ahead in the game. From the radical to the most conservative and skeptical trader, the financial markets offer a choice of investment opportunities today which includes binary options. This is a new but relatively safer way to trade and make easy profits as long as you make the right approach. The biggest advantage is that you are aware of the risk as well as the profits prior to making a trade, which makes it a viable alternative if you are new to trading.
Earn high profits in minutes
In binary options trading all you need is to place a ‘Put’ option if you believe the value of an underlying asset will fall within a specific period or a ‘Call’ option if you predict the value will rise. You don’t have to be an expert at trading. The payouts are fixed in advance, which can be anything from 60% to 120% or more depending on the type of asset. Payouts vary amongst brokers while many offer as much as 15% of your investment back if you happen to lose the trade. Most importantly, you could earn high profits in a matter of minutes. Many brokers offer binary options trades with expiration periods ranging from 60 seconds to 1 hour and a day as well. So, if you are looking for short contracts with high returns, binary options could be the ideal alternative.
Take advantage of market volatility
Another advantage is that you do not buy the underlying asset but the option, which gives you access to a wider market as compared to investing in stocks where high values and prices would limit your investment capability. While traditional forms of investing requires you to wait for weeks, months, and even years to make a sizeable profit, if any, binary options takes advantage of daily volatility in the market where even the slightest movement can fetch huge profits.
Low minimum investments
For the most part, trading binary options is a lot simpler than many other forms of trading. You don’t have to be an expert or a financial wizard although it is prudent to learn about how binary options trading works. On the other hand, if you have been a stock market investor for a while then you can always use binary options as a hedging strategy as well. For those new to trading, it would be wise to start with a small investment in order to learn the finer aspects of binary options trading. This is one of the biggest advantages for the small investor who would otherwise have no alternative but to risk large amounts of money in the stock market. Many brokers like AnyOption and StartOptions have minimum deposit requirements as low as $100 while other such as Banc de Binary and 24Option let you sign up with a minimum deposit of $250. Many offer trades as low as $24 for a single option.
Access to wide range of assets
While binary options gives you the opportunity to earn sizeable profits with the minimum amount of investment it also provides access to a variety of markets. You can trade options on stocks, commodities, indices, and currency pairs in the forex market as well. No other market can offer you returns as much as 70% and more in a short period when compared with binary options. If you have good knowledge of how to pick an asset you can look forward to potentially significant profits. It is important to take time to study the behavior of assets that interest you prior to making an investment. You don’t have to be an analyst or forecaster as long as you make the effort to watch how assets perform over a period.
Limited risks, unlimited profits
Just like any other form of trading, binary options comes with a few risks. However, the risks are limited to your investment with a chance to get back as much as 15% on a losing trade. As a newcomer, binary options could be the ideal alternative. What makes it even more appealing is you don’t have to worry as long as you are good at money management and never risk more than you can afford. Remember, a high level of concentration and awareness of current market trends can turn you into a successful binary options trader.