Advantage5 advantages of trading with Binary Options


  • Binary Options has gained a lot of interest among the trading fraternity and there has been a spurt in number of traders opting for it in the past 8-10 years.

    The major reason for this upward trend has been the possibility for newbies to actually make it big, provided that they develop an interest and understanding of the strategies Binary Options are based on. It is equally important to have a good understanding and the ability to analyze the behavior of the markets.

    Like any other form of trading, Binary Options do have their share of risks, but the rewards are a tad more considering the amount of efforts and skill you must gain to make the same returns in any other form of trading.

    Binary Options have the following advantages which make them stand out from the other alternatives of trading:

     

    • Learn By A Low Investment Or Demo Accounts

    What makes among amateurs Binary Options a cooler way to trade is the fact that they can actually test the waters without having to invest a lot (minimum investment requirements for most broker platforms are less than $10.).

    In fact, you could understand the way Binary Options works without investing a penny too, thanks to demo accounts offered by most of the brokers these days.

    This ensures that you invest only when you are comfortable and confident about trading Binary Options.

     

    • Planning and acting out Strategies is Easy

    There is a lot of certainty associated with Binary Options when compared to other trading forms such as Forex for instance, which is more dynamic.

    The issue with dynamic trading methods is that the trader finds it quite difficult acting out strategies and come up with some concrete way to convert the trades to winnings.

    Binary Options are a beginner’s blessing mainly because they help you develop a strategy and live with it throughout your trading period.

    Moreover, it is possible to manage statistics in an absolute way in fact knowing our winning payout in advance, it is possible to calculate exactly even our break-even point, that is knowing the number of winning trades needed to get a profit, but above all it allows us to fix in our initial plan any individual amounts of investment and also clearly define any medium-long term objectives also. Thanks to this feature it is simple to prepare defined trading plans avoiding too many variables that could undermine it.
    All this however is not possible to be exactly calculated by other financial instruments.

     

    • Reduced Risks

    With Binary Options, your risk potential is “predefined”. You are going to know how much exactly you could win or lose from a particular trade. In other words, your potential risk is fixed and you are aware of it before you go ahead with it.

    This is not the case with other trading forms such as Forex.

    For instance, in Forex trading, the trader actually sets a Pending Order based on trading signals or market news, without any proper assurance that he could actually make some money out of it. You have no hold over the extent of your losses either.

     

    • Easiness to use a money management plan

    With Binary Options, you have the freedom to act out strategies with the help of your trading signals and personal expertise.

    The process of developing a plan for funneling your capital into the trading account is pretty much easier with Binary Options,

    In fact, in addition to the known rules of money management that can be put into practice, with BO the fact of having a fixed expiry time which does not allow us to take action on trade, restricts any impulsive action by us and this is the best tool for those who need to learn to be disciplined

     

    • Quick Turnovers

    Binary Options seem to impress traders a lot due to fast turnovers which in return guarantee quicker payouts.

    Though the time factor differs over various assets, Binary Options have expiry periods of less than one hour, giving you the possibility to enter into more trades every day and thereby increasing your possibilities of earning more.

Members Comments

  1. Profile photo gravatar of Roslyn Terry
    Roslyn Terry (gerardo-schultz)
    says:

    The author has rightly said that in BO risk is ‘predefined’. Most people who lose money in BO, bet their whole account. If you bet only 2-5% of your account in a trade, you will keep loss in control.

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