Binary options is a relatively new and promising derivative, the advantages of which include the fixed risk and higher payouts. This type of trading is available for everyone, you do not need to be a professional in Economics nor Finance in order to make a profit.
All you need is to invest in an asset (e.g.,: Forex currency pair, stock, index or commodity) and wait for its expiry time. It Is simple and everyone is able to make a profit.
Trading Binary Options offers benefits for the trader:
Quick income; The trades expiry time is ranging from 30 seconds (short time trade) to one year (long time trade). This means that you can make up to 90% from your original investment in just a few seconds. There is no other financial instruments which can offer you such a profit!
No experience is required; No matter what you do in your day to day life; doctors, lawyers, managers, office workers, bank employees and even taxi drivers are able to make a profit by trading Binary Options.
Minimal investment; In order for you to start trading, you will need to make a first deposit of $100, lowest investment amount is $5 per trade. For comparison, some stocks in the stock market are worth more than $100. Accordingly, in order to obtain significant profits you need to invest from $1,000 and more!
Fixed risks; With binary options you can not lose more than you have invested. If you invest $5 in an asset, the maximum lose you will have with a wrong forecast will be $5. These are truly unique conditions. In Forex, with a wrong forecast and without proper fund management, a trader can lose all of his investment.
No spreads; Forex traders often lose their money due to the growing spread (the difference between the purchase price and sale price) of a particular asset. In binary options you are able to trade currency pairs without the spread.
Why are more and more traders interested in trading binary options?
The trades can significantly make a change to your investment portfolio. Binary options are traded on Forex currency pairs, stocks, indices and commodities. You can always find an interesting asset to profit from. Another reason for it’s popularity are the up-to-date platforms, which are user friendly and easy to learn. The trading platforms have numerous features, which include not only the possibility of opening trades, but the basic analytical tools as well as other useful features.
Binary options can be used for insuring your risks in other markets. The idea of using these trades as a hedging instruments appeared a very long time ago. A great variety of strategies are available nowadays.
Clarity (Transparency) is also a key feature of the binary options. Trading Binary Options is free of commissions or hidden costs even if the trade is a long time trade that expires in 6 months. The lack of the spread has found a response among the Forex traders who have been able to evaluate the obvious advantages of binary options.
Binary options are the best "cure" for the economic and financial crises. During the recent decades, the negative trends have increasingly affected the world’s economy. With the advent of binary options it became much easier for ordinary traders to overcome the crises and their consequences. Whatever economic forecasts may be, whatever turmoils may have affected the financial markets, with binary options you are not to loose out in the maelstrom of events, but to make the right capital investments.
First reason why binary options are popular is for its simplicity. Binary options only have a few parameters to choose from; choice of direction, underlying asset, expiration time and investment amount. After you choose those the only thing you have to do is wait for the trades expiry time.