Investors who are looking for a type of asset that offers them an alternative to middle-term and long-term products, should extensively deal with binary options.
This investment form, also referred to as digital options or fixed-return options, have multiple advantages which make them interesting for many traders. Furthermore, you do not have to risk high investments to start trading with binary options. With many brokers it is possible to practice trading with a free demo account at the beginning. Moreover, the minimum investments for a real trade -depending on the broker- are just between 10 and 20 €.
Many advantages of binary options
There are several reasons to engage oneself in trading with binary options.
Traders in the traditional finance markets for example need to consider many aspects that may make the purchase of foreign exchanges or resources a very high risk. In addition, you need to rely on an interference-free internet connection, especially when making such trades, since even small breaks may have a strong impact on the trading account. In contrast, with binary options there aren’t any of these so called margin calls. Moreover the expiry time is certain and you just need to observe the market.
Beyond that, most of the brokers of binary options offer to their clients a huge choice of different underlying assets out of different asset categories.
By doing so, even traders who do not want to engage in the foreign exchange-market or the resource bourse are able to bank on the course development of gold, oil or specific currency pairs.
With binary options the exact return quote at a certain expiry time is stated from the very beginning.
So, as a trader you do not have to observe the development of the market the whole time.
Instead, you can lean back after trading.
Other focus compared to stock or investment funds
Of course, as an investor, you should not use your whole asset for the trade with binary options.
Simultaneously to other types of investment it also applies here that the diffusion of the risk is what matters. As a complement to other investments, binary options definitely pay out, since the time period is particularly short and on the other hand there do not arise any transaction costs for trading. When buying such an option you rather know how high the possible return and how high the maximum loss is.
With regard to possible returns of course payout rates that when winning a trade mostly vary from 60 60 to 85 percent, depending on the broker, are attractive. Certainly, not even the best traders are capable of successfully predicting the fluctuations of the underlying assets with every trade. On average, due to the very short expiry time of binary options , relatively high profits are possible anyway.
At the same time, binary options even offer opportunities when other investments like stock or investment funds do not earn profits.
Compared to trades with these commercial papers trades with binary options even can earn profit when the courses are moving sidewards or when they are falling.
Like this, you can schedule your time the way that you can concentrate on the investment vehicle that is currently most likely to succeed . So, as an investor going through hard times at the bourses you do not have to await the right entry time.