Trade with Ease & Confidence.
Why use binary options trading? Why not invest in traditional trading? The two are different as far as the following are concerned: risk factor, profitability, assets handling, sustainability, and the learning aspect. Let’s go over each.
Lower Risk: Every investment using a financial instrument carries with it some risks; the levels just vary. In traditional trading, wins and losses are dependent on the rise and fall of the value of an asset. You can lose a considerable amount of money when that value drops significantly or vice versa – profit big if the value rises to a great degree. Either way, you won’t know beforehand how much you’ll win or lose. It’s the other way around with binary options trading because you can tell in advance how much you’ll win or lose since you have put in a particular amount you’re willing to risk before you commit to a trade. If you placed in $100 for a 70% return, you know you’ll get $170 for a right prediction and nothing for a wrong one. No surprises with this trade since you know the risk you’re willing to go through.
More Profitable: Both types of trading can be profitable to a seasoned investor who relies on experience and expertise. The edge of binary trading is when it comes to payouts. As you’ve learned earlier, the rates of payouts differ per broker; some can even give you 100% or more which means double the amount of your investment for a winning trade. In regular trading the profit rate can be up to 20%, and that is if you’re lucky. This means that in traditional trading you have to buy and sell very large number of assets or by volume if only to realize more profits. According to a 2014 Optimove statistics, binary option traders have a conversion rate 34% higher than forex traders.
Simpler Assets Handling: This is a major difference between binary options trading and trading in forex or stocks. In the former you simply make a prediction in the price movement of an asset you choose while with the latter you need to buy assets and sell them later when their price appreciates in order to generate profits. You can see here that traditional trading is quite more complicated when it comes to how you handle assets.
Easier to Learn: The simple mechanism in binary options trading makes it easier to understand. You just predict the movement of an asset which, by definition of binary options, goes to only one of two directions. You can increase your chances of making the right predictions by going over historical movements of such assets, determine and anticipate events that affect their movements, and find patterns and trends that influence asset prices. Previous data can easily be provided by the broker and trading platform which you can study and analyze. Traditional trading is much more difficult because aside from predicting the movement of an asset you also have to asses the size or volume of the movement or else you won’t be able to make any profits. When it comes to money matters, you’re better off with a more straightforward system.