Main differences of Binary Options

Binary Options have number of differences from traditional (also known as “vanilla”) options. As this financial instrument has been developing over the years of various practices on financial markets and thus its differences became its advantages by taking old product and adjusting it for contemporary traders needs.

Online accessibility – binary options are being traded on online platforms so there is no need for any software downloads and this means that you can trade binary options wherever there is a computer and internet accessibility. Some of the platforms have developed mobile application which made binary options trading even more accessible.

Simplicity – binary options are fairly simple, but at the same time effective financial tool. To make a profit you just need to make a prediction – will the asset price will rise or fall. Binary options do not require a great deal of trading experience: basic knowledge of financial markets and the ability to predict the direction of the price is enough to make a high profit with binary options trading.

Profitability – binary options profitability varies from 65% to 85% and depends only on the correct prediction of the asset price direction. That means that if the investor prognosed the growth of Apple stocks and they went even 1 point up, he will get a guaranteed payout of 65-85%. It is important to remember that binary options allow to make money even when the market goes down. This means that even if the asset price went town and the trader predicted it, he will get the payout up to 85% from the investment he made.

Know your potential risks and profit in advance – when buying binary options investor decides by himself what amount he wants to invest in option purchase. What’s more, even before buying the contract trader can see what his potential risks are and profit that depend on the amount of the investment. It is the most impressive difference of binary options that make this type of trading one of the most secure and stress-free existing so far.

Short term trading opportunity – binary options provide traders with opportunity to make profit in a very short amount of time (sometimes in just several minutes) having maximum risk control.

 

1 Comment + Add Comment

  • I have read so many articles on the topic of binary options however this post is in fact a nice piece of writing,
    keep it up.

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