Four Advantages of Binary Options Trading

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

5 Reasons Why Binary Options Trading Makes Sense

5 Reasons Why Binary Options Trading Makes Sense

There are a number of options open for people who gamble, apart from land-based or online casinos. There are the sports books, poker rooms, and also binary options trading.

Today, more and more people are engaging in binary options trading because it deals directly with the financial markets and offers high returns. People engaging in this form of gambling can trade a range of financial components, including cash and assets, across multiple markets. The lure is greater rewards in a shorter time span.

There are a number of advantages that binary options trading offers people who engage in it. The biggest draw is that it is very simple and offers large rewards. On this page we list out for you the five major advantages of trading in binary options. We will also list out a few disadvantages that it may offer.

Five Top Advantages of Binary Options Trading

The following are five advantages that binary options trading offers. These are why more and more people are opting for this cool option nowadays.

    It is simple. Trading in binary options is very simple and easy. All you need to do is follow the few basic steps and you are on. The first step is to identify and zero in on a broker who can help you trade. If you have an Internet connection and are looking to engage in binary options trading online, it is one of the simplest things to do. Select a broker and then make a deposit; that is enough to get you off the blocks.

The trading process itself is a piece of cake. All you have to do is make a prediction on whether the asset will go up or nosedive. What is amazing is that even this you do not have to do n your own; there is software to help you make that choice. So this is all you do once you have selected a broker: pick the asset and then pick the direction it will go; the next step is to enter the amount you want to spend on that trade and hit Send. Now all you have to do is track the trade.

  • You can start off with low investments. The best thing about binary options trading is that you do not necessarily have to bet high. You can start off with low investments till you get the hang of it. And even once you are good at it, you can continue to bet small. The returns may not be as high as if you bet big, but they are sufficient to get you to continue.
  • The risk involved is minimal and limited. Because you can engage in binary trading with the least amount of money, the risks are also limited. Effectively, the degree of risk is for you to decide: you could go in with minimal risk or jump in with a big element of risk. One thing that works for you is that you know how much you will win or lose based on the amount you are betting or investing. This allows you to pick the amount and limit the amount of risk you expose yourself to. You take a calculated risk, and that can translate to big reward if all goes well.
  • The returns are high and come in fast. One area where binary options trading differs from the standard financial trading is in the amount of time a trade is valid for; the expire timeframes are shorter in this form of trading. Adding to this short time frame is the stupendously high returns involved with some trades; the returns could be as high as 90% if all goes well and luck is on your side. So imagine a trade that takes all of 15 minutes and gets you a return of 80%-90% – that is financial profit heaven. You trade quick, trade safe, and get good returns.
  • Your trading is not dependent on marketing conditions. The best thing about binary options trading is that the fact of your winning is not dependent on prevalent marketing conditions. You can win regardless of whether the price of the asset you have put your money on is rising or falling. All you need to do is be aware of the different strategies that you can adopt. Adopting the right strategies can lead to you winning way more than what you ordinarily would have. Another way of maximizing wins is to track the financial markets; this allows you to be aware of when the prices are climbing skywards so you can sell and make your profits.
  • Disadvantages of Binary Options Trading

    There are a couple of minor disadvantages associated with binary options trading. The first is critical if you are a person who is cautious when it comes to your finances.

    Binary options trading gives you big wins, yes, but the converse is also true: there is also the possibility of losing big. There is in fact the possibility of losing 100% of the principal amount you invested. Of course, some traders offer sops to offset such an eventuality and increase the allure of binary options trading: you may end up getting a small percentage of returns on the money invested even in the case of a loss, anywhere between 5% to 15% of the amount you invested in the trade.

    Regulation can be another sticky issue: because binary options trading is relatively new there is not much clarity by way of the regulations in place to monitor and regulate this form of trading. As a result, you may actually find a number of brokers who do not come under the regulatory ambit. The key, therefore, is to search out regulated brokers. You can do this by putting out a search using the relevant keywords online

    About the Author

    Clive Nelson Author

    Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.

    Advantages And Disadvantages Of Trading Binary Options

    Binary options trading is becoming more and more popular with every passing day, and for good reason. There are tons of people out there that are making their living from home doing nothing but trading binary options. However, as with anything else in life, binary options come with their own advantages and disadvantages. Today, we’ll talk about the advantages and disadvantages associated with trading binary options and how you can tell if trading them is right for you.

    Advantages Of Trading Binary Options

    When trading binary options, there are several different advantages that traders seem to enjoy quite a bit. Some of my favorites include.

    • High Returns – One of the reasons that binary options have become so popular over the years is the fact that the trading vehicle comes with inherently high returns. In most cases, when a binary options trade expires in the money, the trader will earn at least 70% return on their investment. This is rarely seen with more traditional trading vehicles, but in binary options, it’s seen every day.
    • Exciting Atmosphere – Binary options, by nature, are a relatively short term trade. As a result, the trading environment is a very fast paced one. This ultimately makes binary options trading more exciting than other types of trading, at least in my opinion. Whether it’s exciting to you or not, the fast paced environment creates several opportunities for profit in any given trading session, and that’s exciting to anyone!
    • Simple This Or That Proposition – One of the things I like the most about binary options is that they are a simple this or that proposition. When trading binary options, you’re making a bet with regard to whether or not the price of an asset is going to rise above or fall below a specific number. Before making the trade, you know exactly how much money you stand to lose, how much you stand to make, when the trade expires, and what needs to happen for you to realize profits. Ultimately, the certainty of these aspects makes trading binary options a relatively simple process.

    Disadvantages Of Trading Binary Options

    While there are plenty of advantages associated with binary options, like any other trading vehicle, they also come with some disadvantages. Those include.

    • Regulation – First and foremost, regulation is a huge one. The truth is that binary options trading is a very new concept. As a result, regulatory agencies haven’t really caught on. So, most binary options brokers out there are unregulated, which can lead to a risk of being taken advantage of. However, there are some regulated brokers out there, and those are the brokers you should work with if you decide to trade.
    • Losses Are Big – One thing that can be a big drag for binary options traders is how losses work. When a trade ends out of the money, the investor loses 100% of the principal amount invested. This can hurt if you’re making big trades. So, if you decide to trade, make sure to make smaller trades and watch your loss exposure.

    Added Risk – Finally, because binary options trades are by nature short-term trades, there’s added risk. After all, a prediction that has more time to come to fruition will likely be more accurate. So, keep in mind that this isn’t a great vehicle for the risk-wary trader.

    Final Thoughts

    Binary options are a great investment vehicle that are used by many. However, it is important to consider the disadvantages. In this case, regulation issues, large losses, and increased risks are traded for huge gains, an exciting trading environment and a simplistic trading process. If that sounds like your cup of tea, you may just be the next profitable binary options trade!

    Benefits Of Binary Options Trading

    Top 10 Benefits of Trading Binary Options

    Best Binary Options Brokers 2020:
    • Binarium
      Binarium

      Best Binary Options Broker 2020!
      Good Choice for Beginners!
      Free Trading Education, Free Demo Account!
      Get a Sign-Up Bonus Now!

    • Binomo
      Binomo

      2nd in our ranking!

    If you have previously been involved in trading stocks, than binary options will be a quick learning process for you. Many of the same rules that apply to stocks are also used with trading binary options; additionally, having a good knowledge of the market will help you make informed decisions. While trading binary options involves a certain amount of risk, there are also many rewards. Below are the top 10 incentives to trade binary options.

    1. High Return on Investment Potential

    Due to the higher risk nature of binary options, typically the returns on your investment are also higher. Average returns are typically between 60-90%. This compares to a FOREX trader who would typically realize returns of approximately 10%.

    2. Known Risk And Reward – Fixed Risk

    You know right up front exactly how much you are risking and exactly how much you will profit if you win the trade. There is no risk of leverage costing your more than the amount you risked on the trade. Only your chosen amount to risk on any particular trade is at risk on that trade. You know exactly how much money you can possibly lose and how much exactly you can possibly make if you win. Binaries are unlike forex. It does not matter how high or low a price goes as long as it closes in the money for you. A single pip in the money is as good as 50 pips in the money. You still get the same payout on the trade either way.

    3. Some Returns Even When You Lose

    Although binary options produce higher payouts, the risk of these assets is inevitably higher than other investments. To help reduce this risk and make binary option trading more appealing, many brokers offer a small return on the money invested on a losing bet. For instance, on an option that did not go in your favor, instead of losing 100% of the initial investment, you may receive anywhere between 5-15% of that investment back. See our list of brokers for more.

    4. Easy To Trade – Not Complicated Like Forex

    Binary option trading platforms have begun to cater to investors who have little experience trading this style of assets. As such, websites have become incredibly user-friendly with features such as demo accounts, informative videos and live chat features to answer any questions you may have while trading. You also only have to make a prediction correct out of two possible outcomes. You do not have to worry with stop losses, leverage and magnitude of price movement when binary trading.

    5. Fast Turnover Rate – Quick Profits In Your Pocket

    One of the most intriguing factors of binary options is the fact that they have a very fast turnover and therefore a quick payout. Although this can differ across different assets, binary option expiry times are typically an hour or less, thus you can trade more options per day and therefore have the opportunity for more profit. Many of the daily binary option traders trade 15 or 30 minute options. And the ones that really feel like gambling trade the extremely exciting 60 second options. You can see which brokers offer the one minute options on this page: https://www.bestfxbrokers.com/binary-trading/trading-school/beginner/60-second-options/.

    6. Free Trading Accounts With Select Brokers

    With most brokers offering free accounts, signing up to trade binary options has never been easier. This means that all of the money you deposit in your account will go directly into your trades. Keep in mind however, that in order to qualify for a demo account, many brokers require a minimum deposit. Check to see which brokers allow smaller deposits or even free demo accounts. Potential buyers can place as little as $100 into an account and gain access to a full demo account where they can trade with fake money at no risk. A credit of trial money is then awarded in order to help you gain a better feel for investing in these options.

    7. Variety in the Types of Assets That Can Be Traded

    As you learn more about trading binary options, you will soon realize that there is an abundance of different assets that are available to trade. This provides a great way to diversify risk and allows investors to control the amount of risk they want to take on at a given time.

    8. Access to More Assets

    In addition to the many different types of assets available to invest in, binary options also allow investors access to types of stocks that would otherwise be too expensive for the average person. Binary options allow for this since you are not investing in the stock itself but just in an overall prediction, thus by not owning a piece of the company, you can purchase the option at an inexpensive rate.

    9. Easy For Beginners To Get Started

    Whether you are a seasoned veteran when it comes to trading stocks and options or a beginner, there are different types of binary options, each with its own level of risk and difficulty. From simple call and put options to double no touch binary options, you can work your way up to whatever level feels comfortable to you. From vanilla options to exotic options there are a wide variety of trading choices available. Anyone can win and anyone can trade. It is designed to be straight forward for anyone off the street brand new to trading. There are also more complex options with higher returns the experienced experts can trade for big risk, big reward paydays. Something for everyone.

    10. Excitement Factor – You Can Make So Much Money So Fast – It Is Exciting

    The final reason for trading binary options is the level of excitement it provides. Due to its fast pace and inherent unpredictability, investors will find that, despite the high level of risk, binary options provide a new and exciting option to trading that they can use exclusively or simply once in a while.

    There you have it, whether you are more interested in the rational side or the entertainment aspect, binary options have a lot to offer. Once you begin to learn more about them, can become an essential part of your investment routine.

    Best Binary Options Brokers 2020:
    • Binarium
      Binarium

      Best Binary Options Broker 2020!
      Good Choice for Beginners!
      Free Trading Education, Free Demo Account!
      Get a Sign-Up Bonus Now!

    • Binomo
      Binomo

      2nd in our ranking!

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