Top 7 Advantages of Binary Options Trading
easy to reach 24/7
Binary options trading is the most easily easy to reach kind of trading obtainable. Investors do not have to follow a set time schedule and can access their accounts and invest in any obtainable assets at any time.
No Large Investments Required
before, small investors were discouraged from investing as trading involved huge amounts of investments. However, the scenario has now changed and already small investors can now easily trade in expensive markets. An investment amount as low as $200 will be sufficient to start trading in the market.
Simple and Easy to Understand
Usually, the financial markets are very complicated and include charts, examination and various indicators. Binary options trading is pretty simple compared to other forms of trading and do not require investors to understand such complicated details. The investors only need to anticipate the direction of the shares and predict whether the proportion prices will rise or fall after a certain period of time. Based on the knowledge of the market and their own intuition, investors can then decide what to do with their binary options. By predicting correctly, investors can end up making a huge amount of money.
An investor is at the liberty of choosing an expiry time of his own. Investors can select the life cycle of a binary options contract, such as daily or hourly and then can be certain of the time they will receive their payout. There are also short term trades obtainable to the investor ranging from 30 seconds to 15 minutes. 60 seconds trading has become very popular because you can make up to 75% in profit within a minute.
Trading in binary options allows investors to use various strategies that minimize the risk in their trading. However, all strategies are based on proper money management. You should never place a trade that will go beyond 5% of your complete capital. Most binary option traders use 2% of their capital for each consecutive trade. This is a very important aspect to understand and a guideline to follow. Without proper risk money management trading becomes a pure gamble.
In all other forms of trading, the factor of uncertainty is very high and traders are very eager while making their investments. In case of binary options trading, there is not much uncertainty as most settings are predetermined and the traders know the exact expiry times.
Variety of Choices
Binary trading platforms usually offer a number of choices to traders. The binary option contracts that are obtainable to traders range from commodities (oil, silver, gold, etc.), Forex (USD/CAD, USD/JPY, etc.), and stocks (Facebook, Google, etc.). This lets the trader freely choose any contract based on their interest and knowledge.