Advantages of Trading Binary Options

08 Apr 2013, 13:30

The binary options market is becoming more and more popular. Traders are very interested in playing on this market because it has several advantages over other financial markets. It is important to be aware of the benefits of trading binary options in order to understand their popularity.

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Overview of the Binary Options Market

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Here are seven advantages of trading binary options which can’t be found on other markets. For those who haven’t yet traded binary options, they can be pretty good incentives. Those who are already players on the binary options market can refresh their memory on why they are doing the right thing.

1.    Simplicity of the operations – trading binary options is very simple compared with trading assets on other financial markets. The types of trades are easy to understand and this makes the market very attractive for newcomers in the field of financial speculations. All traders have to do is to be predict whether the market will go up or down over a short period of time.

2.    High returns – the binary options market seems to be the most profitable financial market. Payouts can reach 70% and the greatest part is that earnings are fixed. You will know how much you can possible earn from the moment you place a trade. Another attractive feature is the fact that money is going to be in your account immediately after the trade is over.

3.    Low risks – there are no completely safe financial markets and risks exist when it comes to binary options also. However, risk, just like profit is fixed. When you place a contract you will know the maximum amount of money that you can lose and this can’t increase no matter what happens on the market. You can’t possibly lose more than the value of the contract.

4.    Wide variety of assets that can be traded – this advantage attracted numerous players on the binary options market in the first place. If someone wants to trade several assets, he can do this from one account. There is no need to have separate accounts for different assets anymore.

5.    Flexibility – strategies that can be used on the binary options market can be adapted in order for you to make profit even if the market conditions change. The Call/Put options enable traders to trade the price of an asset either higher or lower, as the market requires. There are also Touch and Boundary options which can be used in case of increased market volatility.

6.    Increased opportunities for small players – the binary options market can be accessed with small accounts, which is not always possible on other markets. Players can start with trades of only $10 and increase the size of their account only when they gain more experience. This allows them to control their risk better.

7.    Easy registration – someone wanting to enter the binary options market can register with an existing broker for free. There are even brokers which require minimum deposits of only $100. Other financial markets have higher requirements and traders can’t start with such low amounts.

The advantages mentioned above should determine all investors to include binary options in their portfolios.