Four Advantages of Binary Options Trading

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

Four Advantages of Binary Options Trading

The financial industry developed tremendously in recent years due to the technological developments and alongside with that, new and more complex trading instruments had become available, not just for institutional investors but for ordinary people like yourself.

This material will focus on four advantages of binary options trading and show you what are the key reasons for why you could trade them.

When it comes to these instruments, there are some key features that make them unique. The following traits are four of the most important ones that can make you decide to invest using binary options.

  1. Fixed risk- since you know from the start how much you can earn and how much you can lose you can develop a proper risk management model that can help you avoid blowing up your capital and manage to attain consistent results.
  2. Variety in terms of assets available for trading – with binary options trading you have the availability to trade a few thousands of instruments across different markets, allowing you to diversify your portfolio.
  3. Easy for beginners who just started trading – compared with other assets that are harder to understand when trading (like stocks, for example) trading binary options is easier since it does not require complex knowledge about the financial industry.
  4. Quick results – with an effective trading strategy and a well-designed risk management system + the discipline to apply diligently the rules that you’ve set up, you can acquire great results in a short period of time.

These are four of the advantages you can benefit from if you choose to trade binary options. However, we would like to emphasize again that trading is not easy, not matter in what market you are investing, so just because use have those advantages, that does not mean you don’t have to work hard in order to achieve great results.

In our next material we’ll focus on some of the disadvantages of binary options trading, so you will know what are the main risks if you choose to invest in this market.

Four Big Disadvantages of Binary Options Trading

As an old saying says “When something is too good to be true, so should think more about it”. Since we’ve talked about four advantages of binary options trading in one of our previous material, we want to focus this time on four disadvantages of trading binary options so you won’t be aware of the risks involved in this area.

As a brief risk remainder, so should be aware that speculative investments carry risk and you can lose money, so before jumping into it you should understand both the positive aspects and the negative ones and only then see if it is appropriate to invest your money.

The main pitfalls of binary options trading

  1. Lack of regulation – since binary options are relatively new instruments, there is no significant regulation around it and because of that there are few agencies who can monitor this sector.
  2. Poor reward to risk ration – even though you manage to find good trading opportunities, with binary options you will make around 90% profit on a winner and lose 100% of your risk if the market will move against the direction you thought it will go. Having higher than 50% accuracy is a must if you want to generate long-term profits with binary options trading.
  3. Few order types – call/put options are, in general the only options you have available, since you just have to speculate the direction of the price over a given period of time. No limit of stop order, in comparison with the forex trading.
  4. No stop loss order – even though you see that the market is going against of your direction, you are not able to close your position, before the option expires. This is one huge disadvantage as being able to close it ahead of the expiration can help you reduce a huge part of the losses. Lately, some of the brokers begun to introduce that option as well.

This are one the most important negative aspects you should consider before starting to invest in binary options. Hope the material helped you understand some key concepts about this subject.

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Advantages of Binary Options

Why trade binary options instead of investing on Forex trading? The answer lies on the fact that your choice depends on your financial knowledge and skills. Binary options trading differs from Forex trading in a way that anyone can benefit from the advantages of binary options.

As a newbie trader, you can start trading binary options with just basic knowledge on financial markets, trends, and shares among others. To get a better appreciation of this field, here are some of the advantages of binary options:

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

1. Simplicity – Binary options trading is indeed the simplest form of investment there is. With this industry, all you have to do is to predict whether the price value of an asset would go up or down within a given period of time. Make correct predictions and you instantly earn bucks.

2. Transparency – When trading binary options, you can immediately know how much you can gain or lose even before you purchase any option. At times, you can even see which assets are currently the most traded among users. This gives you an idea on which assets to trade and which option to buy. But it doesn’t necessarily mean that you should go with the flow; you can always make your own choices with binary options trading.

3. Flexibility – With binary options trading, you can trade assets from various markets such as Forex currency pairs, Indices, Stocks, and Commodities. Moreover, you can trade these assets with just a minimal financial risk yet you can earn as much as 70% profit for your successful trades.

4. Personal – There’s no other investment out there that lets you earn profit even at the comfort of your own home. With binary options trading, you can trade international assets whenever you want, provided that the markets are open.

These are just some of the remarkable advantages of binary options. The best way to appreciate these is to engage in trading options yourself and discover the vast opportunities to make money.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education How To Trade!
    Free Demo Account!
    Big Sign-up Bonus!

  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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