Have you ever been involved in stock trading? Or maybe forex? We are sure you must have browsed the forums that discuss them. And in forums that discuss stocks or forex trading, there are usually sub-topics that discuss binary options trading.
You may have been curious at that time but if now you are still curious about binary options trading, then you are at the right moment.
Why? Because after reading this article you will understand why you should jump into binary options trading as soon as possible from now on! Here are 10 reasons why you shouldn’t miss binary options trading!
1. Higher Yield Potential
Binary options trading is riskier than other forms of trading. But behind the high risk, there is the potential for a high return on investment.
In general, it is in the 60 to 90% range. Compare this with the potential return on investment in forex trading, which on average is only around 10% even though the forex market is considered the most volatile market in the world!
2. You Know All The Risks!
One of the great things about binary options trading is that you can know all the risks that may befall you! One thing is for sure, how much leverage risk you are likely to bear, will not be greater than the amount of your capital (the amount of money you bet on trading binary options).
In other words, you can find out how much you can lose maximum. The consequence is you can also find out how much money you might win. This is where lies the difference between binary options trading and forex trading.
You don’t have to care how fast or slow and how high or low the price fluctuates. It is covered by the amount of money you bet. Thus, you can do better risk management.
3. You Probably Won’t Lose Completely
It was explained above that binary options trading is a very risky form of trading but some brokers have a policy of returning a small amount of the total investment when you lose a certain amount.
So, as long as you can choose the right broker, you can’t lose 100%. There’s always something you can save! Usually returns range from 5 to 5%. Small? At least better than losing all your money!
4. It’s Not Complicated At All!
Yes, binary options trading is one of the simplest forms of trading. You don’t need various strategies and decision-making techniques, as well as confusing charts and indicators. Binary options trading is so simple that even beginners have a great chance of success.
Binary options trading sites like binaryoptions.com are usually also user-friendly and full of informative videos that enable a beginner to reach “expert status” in just a few days. Binary options trading lies between two options.
You just need to make the correct prediction of the two possibilities. No more leverage, stop loss, and complicated terms. If you are the type of trader who “doesn’t like to weigh things too much”, then binary options trading is for you.
5. Fast Transaction Turnover
In general, binary options’ expiration time is less than one hour. Thus, trading more than one option is very possible. More trades mean more potential profits (and losses too!). The 15 and 30-minute binary options are the most traded.
However, if you are a “gambling person”, you may be interested in 1-minute binary options. It’s all up to you whether you’re going to make a few or a lot of transactions.
6. You Can Take Advantage Of A Free Trading Account
Many brokers offer free trading accounts and surely this is a great opportunity for you! Today, registering to trade binary options is much easier than ever. However, you should know that in some cases you will need to make a minimum deposit to use the demo account.
You can select several brokers by seeing which broker requires the smallest deposit. A smart decision is to deposit a maximum of $100 but get access to a demo account with all the features that allow the client to trade without any risk. Usually, the trial money credit given will give the prospective trader a feeling of confidence.
7. More Kinds Of Commodities Can Be Traded
Binary options trading accommodates more types of assets than you may have ever imagined. Thus you can diversify risk better than if you were dealing with other forms of trading such as stocks and forex.
Remember that risk diversification is one of the reasons why some professional traders still survive today! As long as you cannot control your risk, you will not succeed in any form of trading.
8. Access To Expensive Assets
Binary options trading opens up opportunities for many people to access expensive assets that have been out of reach for most people.
Why do you say you can access expensive assets? Because you don’t have to buy them. You just need permission to trade them. Those are two different things!
9. Beginner Friendly
No matter whether you are a beginner or a veteran, your status in binary options trading is the same as everyone else’s. Of course, there are various binary options with different levels of difficulty; from simple call options to binary options with no double touch.
All are available in the market! But in binary options trading, anyone can win and it can lose. It is the most egalitarian form of trading.
10. Pleasant Feeling
The level of excitement provided by binary options trading tends to be higher than in other forms of trading. The high risk will not be a problem because, at the same time, the potential profit is peeking behind the door.
So after knowing the 10 reasons above are you going to trade in binary options trading? Tell us your decision! Thank you for reading and we hope you found valuable things in this article that you can use as a guide for your future success. Good luck!