The 5 Benefits of Binary Options Trading
Traded stocks or forex in the past? If you have than binary options will be an easy and faster way of trading for you.
Basically, it’s the same principles but faster and easier. Your experience of the market will help you make more educated decisions.
Binary option trading offers higher risk but also offers unique rewards:
- High Potential ROI
Well you know the rules of the trading world, high gains demand high risk and Binary options are no exception. Profits in Binary option trading are typically between 72-89%. This compares to a FOREX trader who would typically yield returns around 8-12%.
- You know what you risk
In Binary options you know exactly what are the terms of the trade, how much money are you trading with, what will be the profit and when will the position expire. Your risk is predictable and that can help you make smarter strategy choices. You know exactly how much money you can possibly lose and how much exactly you can possibly make if you win and when will all of it happen. Unlike forex, in Binary It doesn’t 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.
- Simpler and easier than Forex
Binary option brokers are more focused on entry level traders, there for most trading platforms are simpler to use.
Today most Binary trading platforms are user-friendly with no need for stop losses, leverage and magnitude of price movement when binary You also only have to make a prediction correct out of two possible outcomes which makes trading easier.
- Quick Turnover Rate – You get to meet your money faster
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. Even 60 second options. Many traders say that the short term trades give the best authentic “trading” experience.
- Big Variety in Assets Types
With Binary trading you are not limited to coin trading. 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.