Trading binaries has become the hottest thing on the online markets over the past few years; it appeals to both experienced traders who thought that profit margin on stocks is too small and to amateurs who need some excitement in their lives – and some money wouldn’t hurt, either. Indeed, there are numerous advantages that binaries hold over their less illustrious counterparts, and here are some of them:
First of all, binaries enable traders to capitalize on any knowledge and experience they might possess in terms of stocks, indices, currencies or even commodities. The fact that traders are no longer bound to a single type of asset is a huge plus in many books. The risks and rewards are known in advance and “set in stone” so there is no way for traders to rack up more losses than they signed up for – something that few other financial markets can guarantee.
Another thing that cannot be found in other markets is the extremely high return. In the best case scenario, most traders on other markets are lucky if they see 10% of their investment in returns, whereas BO traders can make anything between 60 and 90% on a single trade. There are even some BO brokers who offer special returns that are many times what you are required to invest, but these are few and far between. Still, making more than five times more money in sheer profit is essentially the same invested sum is quite an incentive.
Furthermore, other markets often have you guessing how much you will be making; and even in the best case scenario, after all the fees and expenses, most people are lucky to see any overhead. On the other side, BO traders know exactly how much they are going to earn, or lose per every single trade – and they know it in advance. This is due to the fact that with binary options, the actual price bears no relevance, as long as the general prediction is correct; you make the same amount of money regardless of the extend of price change. If you are in the money, you are in the money.
And if you are not in the money, sometimes you are in the money – technically. Some brokers offer a partial refund even on binaries that are out of the money, so their traders never face a complete loss. Some brokers do not offer any money back at all, but those who do usually return anything between 5 and 15% of the investment back to their unlucky traders, although there are brokers who are even more flexible in this regard, under the right conditions. Other markets are far less generous.
However, since most of their clients are lacking in experience when it comes to financial matters, BO brokers were forced to keep their online trading platforms as user-friendly as they can be, without sacrificing functionality. They have even included educational features and even demo accounts – not all of them, of course but most offer some sort of training before the main event. Besides, there are only two possible outcomes with binaries (hence their name), so how much training could one possibly need?
When trading in other financial markets, one of the largest obstacles traders have to face is the fact that trades are not instantaneous; there has to be someone on the other end, ready to accept your offer and there may take some time before a suitable counterparty appears. Otherwise, the broker is forced to take the next best thing, much to the discontent of his or her clients. With binary options, however, there are no such concerns: all deals are matched automatically, plus most binaries expire in under one hour, so the trades are as quick as they get. In fact, there are binaries that expire in 30 seconds or less, a speed that no other market can match. Optionsxo twitter page offer updating data on a daily basis. This means you can make more trades, using the same money to make several turnovers a day and make even more money this way – or lose it, if you are not careful.
The overall popularity has led to a surge of BO brokers, which in turn has pressured the existing ones into some interesting compromises. For instance, most trading accounts are free for BO traders, even if some have to pay the minimum deposit, which is usually just a formality. Some minimum deposits go as low as $100-200, and most brokers offer bonuses that exceed minimum deposits many times over anyway.
Most importantly, what many beginners find the most appealing is that they are not liable for any of the underlying financial instruments, as they do not actually own them. So even if the particular stock crashes, you can move on unscathed, unlike shareholders who would find themselves in some serious financial difficulties.