Top 7 Advantages of Binary Options Trading
Accessible 24/7
Binary options trading is the most easily accessible type of trading available. Investors do not have to follow a set schedule and can access their accounts and invest in any available asset at any time.
No large investments required
Previously, small investors were discouraged from investing as trading involved large amounts of investment. However, the scenario has now changed and even small investors can now easily trade in expensive markets. An investment amount as low as $200 will be enough to start trading the market.
Simple and easy to understand
Financial markets are usually very complicated and involve charts, analysis, and various indicators. Binary options trading is quite simple compared to other forms of trading and does not require investors to understand such complicated details. Investors just need to anticipate the direction of stocks and predict whether stock prices will go up or down after a certain period of time. Based on market knowledge and their own intuition, investors can decide what to do with their binary options. By predicting correctly, investors can end up making a huge amount of money.
quick results
An investor has the freedom to choose their own expiry time. Investors can select the life cycle of a binary options contract, such as daily or hourly, and can then be sure of when they will receive their payment. There are also short term trades available to the investor ranging from 30 seconds to 15 minutes. 60 second trading has become very popular because you can make up to 75% profit in a minute.
Risk management
Binary options trading allows investors to use various strategies that minimize risk in their trades. However, all strategies are based on proper money management. You should never make a trade that exceeds 5% of your total capital. Most binary options 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 money risk management, trading becomes pure gambling.
Uncertainty
In all other forms of trading, the uncertainty factor is very high and traders are very anxious when making their investments. In the case of binary options trading, there is not much uncertainty as most settings are predetermined and exact expiry times are known to traders.
variety of options
Binary trading platforms typically offer a number of options to traders. The binary options contracts that are available to traders range from Commodities (Oil, Silver, Gold, etc.), Forex (USD/CAD, USD/JPY, etc.), and Stocks (Facebook, Google, etc.). This allows the trader to freely choose any contract based on the interest and knowledge of him.