We understand that when you initially hear the words ‘binary trading’, excitement and intrigue may not be the first two things that spring to mind. We were definitely unsure about what binary trading was when we first heard about it! We’ve put together a handy article outlining what exactly binary trading is and why you might decide it’s for you. Be sure to carry on reading to discover more about this mysterious topic.
What is Binary Trading?
In recent years, Binary Trading has become a very popular trading option, with a large proportion of the investment community using this trading option to speculate on online markets. Binary trading is a great way to make a quick profit, however, it is a trading option that requires you to do your research first! Without research, it would be very easy to lose your hard-earned cash in a bad investment.
For those of you who are still unsure about what binary trading is, it is simply an option when you trade binary options. Binary means two and with options style trading, you are given two outcomes, which is either making a fixed profit or losing your initial investment.
If you choose to take part in binary trading, your potential payout is always established at the beginning of the trade. Those who are unfortunate and lose will automatically lose their initial investment. This means there is minimal risk management as you can only invest what you have sitting in the bank. This helps to keep losses under control.
Binary Trading gives you the opportunity to trade on multiple assets including commodities, stocks, forex rates and indices. Make sure you understand that when you use binary trading, you are only able to trade the underlying asset and not the asset itself as the binary trading option is always derived from the price of the underlying asset. Binary trading contracts can run from as little as a few minutes, right up to a full year, so there’s plenty of different trading and investment opportunities to consider.
Why Choose Binary Trading?
Binary trading comes with vast potential for you to enjoy a seriously quick payoff – we’re talking a matter of minutes with some options! Traders can make a standard 70% return on capital with any binary option trade. Some brokers will offer a special ‘one-touch’ binary trading option that has some astronomical payoffs attached. With these weekly offers, you can enjoy up to 500% in payoffs.
Binary trading offers you a great level of flexibility as it allows you to trade on a number of different assets. With any binary option trading, risk factors remain very low as you are only ever able to wager what is currently in your account. This means margin call is never a concern.
If you are interested in binary option trading, we would recommend that you initially hire a broker if you have not been involved in this type of trading before. Professional traders are the best people to learn from as they normally employ tried and tested strategies that you can follow.