Binary options are similar to traditional options with fixed return but with several advantages. The benefits of trading are making it more popular among the traders. It is the plethora of opportunities for binary investors. It is one of the newest and most interesting ways of option trading. The conventional option trading is also there but binary trading is now leading the market due to its matchless features. With their simplicity they have large potential of high return. The following benefits have made it attractive in the market,
Easy and 24 hour accessibility
With the introduction of these trading instruments t, expensive markets have become accessible to small investors.It was impossible in the past for general public. Its trading platforms are now 24/7 online and you can invest on any available underlying asset at any time.
Simplicity in trading
The financial markets are filled with complex indicators, charts, and analysis. You have to go through them for a winning trade. Unlike their counterparts, binary option trading is the simplest form of trading. Only you have to predict the direction of strike price for underlying asset, either it will go up or go down. If your prediction is right you are going to get a definite profit.
Instant trade results
Binary platforms provide you with the quickest opportunity of profit. The life cycle of binary option contract is selected by the investor. It may be within a day or hour. On expiry time of your contract, you are aware of your payout.
It is more profitable than any other tool of trade. You can take profit up to 60% to 90% with limited and short term investment. To gain this payout percentage, you only have to predict right price direction.
In binary options trading you are aware of how much investment is being risked. If your prediction goes wrong, you will lose your premium. Majority of trading platforms offer 15% coverage rate. It means that if binary option expires in money you will get up to 85% payout of your invested money and if binary option expires out of money you will have to pay 85% of your premium. So, risk management is easy as it is pre determined and fixed.
In normal stock, commodity, and forex markets uncertainty factor is high. As any major head line of the globe can change market trends. In binary option trading there is no uncertainty factor. Every thing is predetermined and in the knowledge of binary options trader.
On binary trading platforms, there are multiple binary option contracts available on stock, commodity, forex, interest rate future, games and also on weather. So, you are free to choose anything for betting according to your knowledge and interest.