Increase Your Profits with Binary Options13 Apr 2013, 08:00
There are several advantages when trading binary options which you can’t find on other financial market. It is impressive how easy you can make money on this market compared to similar markets. However, the point is that few investors think about incorporating binary options trading in the strategy they use on the forex market.
Let’s take a closer look on the advantages that binary options market provides to traders. The binary options market is a very fast-paced one. Trades often have expiry times of one hour or even less, so you can make profits in a very short time. You will also have a fix profit which is know right from the start. Leverage in this case becomes useless because you can determine your profits without using it. Short expiry times also allow you to take advantage of price breakouts and as long as you identify the best trading times you can increase your profits. This is essential when it comes to making money out of financial speculations.
In a time span of only one hour you can make money by simply predicting whether the price of an asset will go down or up. It doesn’t matter how much the price varies, as long as it goes in the direction you traded, you will be profitable. Returns on the binary options market can reach the impressive percentage of 85. In order to obtain similar profits on the forex market you would take much higher risks and you would be using serious leverage. Instead, on the binary options market your risk is easy to control because it is fix and you know it in advance. You have the chance of making money without any leverage at all.
In order to understand how the binary options market works, you can take a look at several examples of trading on this market. If you have reasons to believe that the price of an asset will go down in one hour, you can place a Put option of $100 on that asset. That’s all you need to do because leverage is useless and the need for a stop-loss does not exist either. Your risk is already known, so you don’t have to calculate it. All you need is a binary options account with a reliable broker and at the end of one hour, if the price of your asset is even slightly below the initial price, you can have returns of up to 85%. A fraction of a pip is enough for you to make profits. That is it and you can cash your money without calculating risks, using leverage or stop-losses.
It is very easy to get started on the binary options market. Pay attention to the broker you choose because you need to find a reliable one. Make use of online reviews for comparing brokers and choosing the one which offers what you want.