There is a new trend in online stock trading, and that’s binary options trading. Since increasing numbers of people wish to trade around the global markets, it is very important to simplify the entire process of trading and make it easier for everyone.
Precisely why binary choices are so successful nowadays it’s the fact that it’s the simplest way of trading, and people like simple things. It’s not necessary to be an expert trader to be able to know how digital options work. The only thing you need to know to achieve success in trading binary options may be the direction where the market will move. Forget about problems with placing the orders, calculating risks and rewards, margin calls, stop losses and other complicated parameters.
In binary trading options you have only two options: win or lose. You know exactly how much you will win or lose before buying the options. You don’t have to be worried about slippage, liquidity or margin calls. If you buy a binary option with 75% reward and 10% refund you will get 175% if the option is a success or 10% if it is a loser.
Binary options have predefined deadlines, so you don’t have to wait for the sell to reach a particular level. You realize just how much time that it remains before the option expires, making your choices portfolio quicker to handle.
A simple example of options trading shows how easy it is to do business with binary options. Let’s say that you consider the gold price will raise after the day. You will buy a phone call option on Gold having a reward of 75% along with a refund of 10% out of your broker with the deadline at the end of your day. When the closing price of Gold is higher than the price when you purchased the option you’ll have 75% profit in under a day.
Making exactly the same profit in the same time period could have been much more difficult with normal trading. If you purchase a CFD for Gold you do not know just how much you’ll win by the end of your day, whether or not the market will raise, because it depends on the cost difference. If it’s merely a small enhance the profit can be really small too. Another big disadvantage of normal trading is the chance of losing more than planned, if you don’t use stop losses. If you use stop losses to prevent dangerous moves, you are able to end up hitting your stop loss before the market recovers and moves in the desired direction. This way you are able to end up taking a loss even when you predicted correctly the direction where the price goes the end of the day.
You can decide how much cash you purchase every digital option, and therefore you have complete treatments for your investment funds and risks.
Considering all the above advantages, it is no wonder why more and more amateur and professional traders alike start trading binary options and make a steady income out of it.