Advantages of Binary Options Trading
Binary options trading attracts millions of traders from all over the world for a good number of reasons such as simplicity, defined risks, huge returns, low investment capital, just to name a few. Binary options are modern, exciting and rewarding financial instruments traded online. No hidden fees, no commissions, no brokerage arrangement needed. With binary options trading all risks are known in advance, rewards are clearly defined and convenient trading tools provided. Below you will find a detailed information on all advantages of binary options trading.
Unlike conventional trading, binary options contracts imply only two possible outcomes. An option expires in the money and a trader receives gain or an option expires out of the money and a trader suffers loss. The outcome is based solely on the trader’s prognosis with respect to the direction of the price movement. So, one of the main advantages of binary options trading is its simplicity and dual nature which gives a trader a fantastic opportunity not to worry about a number of irrelevant things and concentrate all his efforts on predicting relative strengths and weaknesses of underlying assets.
Low investment capital
One of the advantages of binary options trading is that it can be afforded by anyone due to the low investment capital requirements. There is no fee associated with trading account opening and minimal deposits which enable you to start trading normally vary from $100 to $250. Price of one particular contract or binary investment can be between $5 and $25 depending on the broker and type of option. Some brokers offer demo accounts funded with virtual money or with real money which can be withdrawn upon reaching certain turnover requirements, which gives novice traders a great opportunity to learn trading techniques and master new strategies. Generally speaking, another advantage of binary options trading is that brokers do their best to educate traders and create comfortable trading conditions for all types of investors.
High returns and defined risks
Another advantage of binary options trading is relatively large returns and known in advance risks. A trader is purchasing an option for a set price so he always knows the amount he is risking and potential profit he can make if the option expires in the money. A trade can be placed in a matter of seconds when a right trading opportunity is apparent and binary options platforms are configured to display potential returns any time a trader is ready to open a position. Such option gives traders peace of mind and clear understanding of risks and rewards.
Binary options trading provides for the highest return rates on the financial market. Most forms of traditional financial instruments mature over a period of time and possible earnings are insignificant comparing to binary gains. Binary option contracts have an average profit rate ranging from 65% to 90%.
Binary Options Regulation
Binary options today are considered to be highly regulated financial instruments. Regulatory status of the chosen binary options broker can be easily verified by doing a quick research of the license number, registered and business address etc. A regulatory authority that issued a license of the broker can be contacted in the event of any doubt. Any disputes of complains arising in the process of trading activity or out of any financial dealings with your binary broker can be communicated to the regulating authority if the situation can not be resolved directly with the broker. Strict regulation of binary market is one of most important advantages of binary options trading.
From a novice trader to a seasoned investor, binary options trading offers trading tools and investment opportunities for everyone. Short-term and long term options, technical analysis trading and fundamental analysis (market data) trading, variety or expiry times and assets (currency pairs, indices, commodities or stocks). Besides classic call and put binary trading most platforms offer a number of other binary options types such as Ladder, Pairs, Turbo, One touch and others. Advanced trading platform allow traders to sell positions earlier, to double positions or roll-over expiry times. Such flexibility makes binary options trading suitable for all types of market players.