Benefits of Binary Options Trading That Attracts Trades - Binoption
Before knowing the Binary Options Trading Benefits, first come to the point of trading concept.
It’s true that if you have some experience in stock trading, then learning binary option will be simple and quick.
However, it is not a necessity.
Some of the rules used for stock trading are used in binary options as well, additionally financial market knowledge is also essential.
All this is crucial as binary options has more involvement of decision making skills.
Those who wish to trade binary option should be determined and should be ready to take independent decisions.
Though there are a lot of strategies, signals and techniques to help you to trade.
The ultimate decision will be of the trader to decide which trade to which and which signals to be ignored.
The best binary options trading benefits are listed below; this will help you understand why to choose binary options over other types of options:
1. High return on investment:
As you all know when the risk is high, the return will also be high, this is the same phenomena of binary options.
The average rate of return on binary options is about 60% to 90% depending on the broker you choose to trade with.
However in Forex market it is just 10%.
Due to this reason many traders prefer trading binary option instead of Forex trading.
As the risk associated with both is almost same but the returns are comparatively very high with minimal investment.
2. Risk and Reward is known and fixed:
Here it is not about how much you invested.
It is more about how much risk is associated and what is the reward for the same.
As these both are very crucial parts of trading, there risk and reward are fixed to a limit.
The risk of any trade is only to the extent of how much is invested on that particular trade and the reward is also a predetermined amount.
Thus if the predictions go right, then traders can automatically calculate what would be their return on the trade.
3. You will get some returns even if you lose:
Due to the level of risk associated to binary options.
A certain amount is given as refund by the broker even if the trader loses the trade.
This small refund plays a very crucial role in uplifting the morale of the investor.
So if a trader loses in a trade, instead of losing money on the whole 100%, only 75% to 90% will be lost and the rest will be refunded.
This amount the trader can immediately use for investing in some other trade.
This way, there will always be some amount in your wallet if you keep losing as you may be new to this field.
4. Unlike Forex, easy to trade:
Even those who have little or no prior experience can be a part of binary option trading, there is no eligibility criteria by any broker for the experience factors.
Thus if you are new to trading and willing to make some money through your smartness, then binary option trading is one of the best choice to start with at any time of your financial career.
5. Quick profits due to fast turnover rates:
The most fascinating factor of binary options is that you can make money within few weeks or months.
Irrespective of how much you initially invested, there is high chance of making huge money within limited time.
The profit percentage will differ from asset to asset and is dependent on the broker as well.
However if right knowledge and predictions are applied on any asset, the return will be satisfying.
6. Some brokers offer free trading accounts:
There is a misconception that only illegal brokers offer free accounts, but it’s time to correct it.
There are lot of binary option brokers that are out there in the market who are genuine and offering free trading account.
Some of the main reasons for this is – may be the platform is relatively new and want to attract customers.
May be they are not offering services for all assets and thus want to make sure the assets they have are getting considered by traders when the account is offered for free and so on.
7. Types of asset varieties:
The asset varieties offered in binary option is exceptionally high.
Just like Forex trading, almost all assets are eligible for binary option trading.
Anything like currencies, stock, commodities and indices can be traded through binary options and the return on the same is very high.
We are able to promise this to our customers through the investigations conducted by our expert team.
Through this traders can differentiate and decide what level of risk should be taken at any given period as the risk and return on each asset is different.
8. Access to more assets:
Through binary option investors will get more access to different assets.
Those stocks that would otherwise have been very expensive to try can be tried out through the help of binary options.
The reason for this is, you will be investing only on the prediction amount of the asset and not on the asset itself.
Plus as there is no actual deliver of the product, there is no need for storage of purchase of the asset.
In simple terms, through binary option you can book a trade on the stock of a company without investing or owning the stock.
9. Getting started for beginners is easy:
As the whole process is not complicated, beginners find it easy and affordable.
Lesser the complexity is higher is the return rate of the investment.
This is what attracts every trader as a beginner.
New traders need a lot of motivation and this can happen through return on investment along with gaining sufficient knowledge on the topic.
10. Excitement of making huge money within limited period:
There is no doubt that every trader will be excited to see huge returns on their investment.
If this is seen in the initial stages, they will be motivated to invest more and more money, time and effort.
The excitement will trigger an enthusiasm for traders to trade.
And as long as this spark remain in a trader, trading binary option will be easy.