Trading binary options, or digital options as they are sometimes referred to, gives traders much more flexibility and choices than conventional forms of options trading. This type of trading allows traders the opportunity to trade a large variety of financial instruments including stocks, commodities, currencies, and more. Trading digital options offers traders the opportunity to realize profits from 60-80% on trades in a very short period, even as little as one hour in many cases.
The advantages this style of trading offers are that trading is a simple process, and there is limited risk involved as opposed to trading conventional options. Traders only have to be right as far as price direction is concerned in order to profit. Binary options are issued 24 hours a day and the trader can choose different time frames for each trade. The risk involved is predetermined and fixed, so traders know exactly what the profit or loss will be on any given trade.
Digital options are far less risky than other forms of trading, particularly Forex, because there is no leverage or “stop loss” conditions involved. Traders don’t have to worry about trades going against their position and incurring huge losses. Risk is always limited to the amount invested in each individual trade. This gives traders the flexibility to trade even the most volatile markets with only a small amount of risk.
Profits are realized when trades go into the money by a single tick. Traders don’t have to worry about the price reaching a certain point to realize profits.
Traders never have to worry about margin calls with binary options trading. The account minimum required to begin trading is far less than what is required to trade other markets such as Forex, commodities and stocks.
There is virtually no limit on what can be traded. Options are issued on the most popular instruments such as currencies, gold, oil, and stocks.
Other benefits include:
•Trading can be easily diversified
•Options expire hourly and daily
•Options are not traded on secondary market
Finding a good broker is critical to your success. Not all brokers offer the same benefits. Check out several brokers and compare features before choosing a broker. The best brokers will have an out of the money feature that pays up to 15% when an option expires out of the money.
Higher returns are a primary advantage of binary options. Traders can profit as much as 80% on a single trade.
Another benefit is the amazingly quick returns that are possible. Traders can realise big returns in as little as one hour.