A popular form of trading in the finance has hit the markets by storm. What am I referring to? Let me introduce you to an exiting form of trading called “Binary Options”. Binary options are one of the greatest financial products I’ve come across in several years. The concept is simple, they are limited-risk contracts with a fixed payout amount attached to them. They payoff is either a pre-determined financial profit or nothing at all. They offer an innovative way to participate in the financial markets. You can trade different contracts within an array of markets such as commodities, Forex markets, S&P, Wall St 30, US Tech, News, US 500, FTSE and more. If the waging underlying asset that you’ve predicted goes in the anticipated direction you’ve invested in, you’ll make money. On the other hand, if it doesn’t go in your anticipated direction, you’ll lose ONLY your initial investment. Binary options are based on a simple concept “yes or no”.
Becoming more popular year by year, binary options gives the average trader to make a substantial income just by accurately predicting the direction a particular market will go. Many people have made the decision to trade binary options as their main source of income. There are pros and cons to everything though. Binary options is no exception regarding trading this particular type of derivative. Wigmarkets
Here are some of the benefits of trading binary options:
Simplicity
-Trading options can be a intimidating and challenging task. It requires studying your preferred market by fundamental analysis. When it comes to binary options though, it’s a simple proposition when predicting your in the money wager. Deltafxmarkets.com
Instant Returns
-One of the reasons binary options has become so attractive, is that it allows the trader to place a wage and within a few minutes, hours, days or weeks, the investor is able to obtain their potential profits. Making it a easy, quick way to create money.
Flexibility
-Being able to choose which derivatives to invest in at any particular time, creates a very attractive platform for investors to participate in. Your’e not limited to only one market. You can even diversify your wages at the same time. For example, you can trade the Forex market and the commodities market as well, at the same time.
Transparency
-When a retail trader places a trade, the potential profit associated with that trade is already established. This give the trader some assurance of what’s anticipated, giving them some level of security regarding risks. You know how much you can potentially lose and how much you can potentially make. This is another reason binary has become so attractive within these past recent years.
There are some disadvantages of trading binary options as well.
Here are some to consider:
Regulation
-Most binary options platforms are not regulated, making them a risky investment to consider. Every intending investor should be aware of all this fact before deciding with company to participate with. In the US, a company called Nadex is one of the only and not to mention the biggest regulated trading platforms around. Another option I’ve recently stumbled upon is called Cantor Exchange. Both of these companies are US regulated making them a stable and secure place to trade binary options.
Substantial Losses
-When a trade is unfortunately out of the money. All of the trader’s investment is lost. This makes it an intimidating type of trading style for the unseasoned investor.
Overall, binary options gives traders a great option to participate within financial markets.
