If you’ve traded stocks in the past (or if you’re doing so currently), then learning how to trade binary options successfully should be much easier for you. That’s because there are several similar rules that apply to both stocks and options.
In addition, having good knowledge of what goes on in the market will go a long way in helping you make sound decisions. Note that trading binary options come with certain risks and rewards. Let’s look at the top benefits of doing so:
1. Provides Higher ROI Compared to Forex Trading
Normally, people who trade binary options realize a significantly higher ROI (Return on Investment) compared to Forex traders. For instance, you can get an ROI of as high as 50% to 90% when trading options. On the other hand, your ROI when trading Forex would be just about 10%.
2. Fast Turnover Rate And More Profits
Another reason why you should consider trading binary options is because of its fast turnover rate and quick payout. Note that this may vary based on the asset you’re trading, but on average, trading takes between 15 minutes and one hour. This means that you can trade several options throughout the day, giving you an opportunity to make more profits.
3. You’re Guaranteed Of Some Returns Even If You Lose
How would you feel if you lost 100% of your initial investment in your first binary options trade? Bad right? But the good news is that you’re guaranteed of some returns even if a trade doesn’t go in your favor. Because of the high risk involved in trading options, several brokers often guarantee traders a small percentage of their investment as returns incase they lose a bet.
For instance, you can get back anywhere from 5% to 15% of your initial investment when you lose a bet. This, to me, is much better than losing everything.
4. You Know The Risks and Rewards To Expect
Another good thing with trading options is that you’ll know up front exactly how much you’ll gain/profit incase you win a trade as well as how much you’re risking. This means that you only lose what you’re willing to lose; no surprises here.
5. Binary Options Is Easier To Trade Compared Forex
If you’re an investor with little or no experience in trading binary options, you’ll be glad to know that several trading platforms nowadays are very user-friendly and have several features (such as live chat, demo accounts and videos) that will make your trading experience easier. Therefore if you have any questions while trading, feel free to ask the customer support team immediately.
It is also much easier to trade compared to Forex in that you only need to make one correct prediction out of two possible outcomes.
Please share this post on different social media platforms so your friends can learn the benefits of trading binary options.
- John Reigner
- Kindle Edition
- Edition no. 1 (02/27/2019)
- Andrew Aziz
- AMS Publishing Group
- Kindle Edition
Last update on 2020-03-19 / Affiliate links / Images from Amazon Product Advertising API
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