Before divulging into the key benefits of binary options, let us first understand that what exactly it means. Binary options is a type of options where the payoff (your gain from the deal) is structured in such a way that either it is a fixed sum when deal expires in the money or nothing if the deal expires out of the money. A simple example to explain would be whether a share price of PQR Company would be Rs. 50 on 25th March 2015, at 11:00 AM. If the price of PQR is Rs. 55 at the pre-determined time, the option is exercised and the holder gets the pre-determined amount of money.
There is an upside to trading in Binary options, but it needs perspective.
7 major Advantages of Binary options
Fixed Rewards and Risks:
The major merit of trading in binary option is that the risk and rewards are known. A person makes an informed decision about getting into the contract. It is your acumen of the market that helps you predict the future to enter into the contract. This trading instrument is also simple to use. The trader has to only anticipate if the asset he or she questions about is going up or down.
The market can move in any direction, that is, in favor or against the trader. But the outcomes from the option remains the same. It can either be your gain, of the predetermined amount. or can also be your loss. Thus this limits the probability of the trader to actually make any kind of a mistake. The trader can be rest assured about the outcomes and then make a choice whether to get into the trade or not.
Accessibility and Affordability:
The possibility of the traders to trade even small amounts online makes it accessible and affordable for all. The brokers allow you to make small minimum trades from as little as possible which implies that you can trade as little or as much as you want, thus needing no big bucks to back you up. In the beginning, it’s better to bet small amounts until you understand the intricacies of it and trade as much as you are willing to. Also, you have to pay no fees or commissions with this trading option. The brokerage may, however vary from broker to broker.
With most brokers offering free accounts online, signing up to trade binary options has never been easier. This means that all the money that you deposit in your account has a direct connection to your trading accounts. But keep in mind that a demo account requires some minimum deposit.
All types of assets:
There are many financial holdings that can be traded all around the world daily. This means that your preferred asset or the knowledge that you contain about the financial markets can help you with the ability to select it for your options. Many brokers offer their traders different sets of assets that they have to trade but be sure to check each one carefully before getting into it. An extensive range of commodities, stocks, indices and currency add up to around 100 of them meaning you have your choice of assets to trade. The assets you feel are profitable in the near future.
Experience has nothing to do with profit here:
It does not matter whether you are a professional in the trading market or just a mere beginner trying your hand into something new, binary options can definitely be good. From vanilla options to exotic options there are a wide gamut of trading choices and assets available. Anyone can win or lose and anyone can trade or exit the market. It is structured to be straightforward for anyone planning to enter the market taking first steps in the activity. There are also more complex options with obvious higher returns (higher risk too) by which the experts can trade for bigger risk and bigger reward. Thus, binary options has something for everyone.
Easy to use:
Brokers of binary option in the attempt to expand its operations has made trading platforms accessible through not only web based trading via laptop or fixed desktop but even from mobile devices or smartphones. This implies that accessibility is not a question and you can also trade on the move and check the status and progress regularly and conveniently.
Clearly, the above points show even with a simple read, that there are many benefits of trading binary options online. It is widely available and includes a simple structure for trading with fast outcomes. Higher returns are also possible on any magnitude of trades you make small or large or medium. This makes it highly easy to start trading and potentially profiting even through small investments. Just make sure that you understand the potential benefits and losses. You too like many others can easily benefit from trading binary options.