Reasons to trade Binary Options

burdianex

Trader
May 10, 2013
21
0
12
Binary option contracts are unique and have some characteristics that sets them apart from other financial instruments. Traders can trade assets in different asset classes, and the traders always have an expiry date or time. The trader is also put in a position where he knows exactly what the trade will cost him, and what he will gain or lose depending on the outcome of the trade.
There are many reasons why you should trade binary options. Binary options were licensed for the retail trading market the same year that the conventional markets went haywire after the collapse of the subprime mortgage industry in the US. Some of the reasons are as follows:
a) Less risky to trade
In the traditional financial markets, there are a lot of factors that traders must contend with. Leverage, margin, slippages, poor internet network and unscrupulous practices by some brokers can affect the trade outcomes, making forex and commodity trading some of the riskiest trading ventures to get into.
Binary options trading is devoid of some of these factors. There are no re-quotes, no slippages and no leverage or margin requirements to content with. There are also no margin calls.
b) More choice of what to trade
Some binary options brokers offer up to 90 assets. That is 90 different financial assets that can present an opportunity to make money at any given point in time. If the market saying about a bull market being in existence somewhere, you surely have better chances of finding such opportunities in the binary options market.
c) Reduced Cost of Trading
If you live in the US and trade forex, the new guidelines issued by the Commodities and Futures Trading Commission (CFTC) will require you to open an account with at least $25,000 for forex trading, and even more for options trading. With binary options, you can get into the market with as low as $100. YOU DO NOT NEED AN ARM AND A LEG TO TRADE BINARY OPTIONS.
d) Better payouts
The percentage profits that traders can earn are typically higher in the binary options market than in any other market. Payouts range from 70% to 90% in ordinary trades, and up to 500% in the speculative high-yield trades. Trades with shorter expiries can open up the opportunity to make even more money.
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
I do like to trade binaries and they can good if you understand what they are and how to use them properly. I agree that it reduces the cost of trading. I think the biggest mistake is that new traders believe the advertisement campaigns which state you can trade without experience etc which is not the case.

When it comes to percentage it is a bit misleading. You can get a much higher ROI trading forex (depending on leverage you use). The biggest advantage for traders with a shorter timeframe, is that even if you are in the money by one point you get you payout.
 

myknees

Trader
Jun 26, 2013
93
0
22
Well, it saved me depositing £250 and losing it - Plus I learnt a hell of a lot about the industry in general so in my opinion, fair play to the author.
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,821
981
144
Odessa
www.earnforex.com
Perhaps you are right. If the author can really convince someone not to go into binary trading, it is probably worth at least $5. As far as I know it is very difficult to change someone's mind when they are certain in their getting-rich-quick plans.
 

garena

Master Trader
Jan 28, 2014
243
5
54
is there any good binary option brokers ? I just aware about this trading type but I am afraid scammer. Please list some good BO brokers.
 

globalfx

Trader
Feb 24, 2014
44
1
19
is there any good binary option brokers ? I just aware about this trading type but I am afraid scammer. Please list some good BO brokers.

It is a get-rich-quick scheme. Don't even bother about trading. Even if you win today, you will certainly lose everything tomorrow.
 

garena

Master Trader
Jan 28, 2014
243
5
54
I don't plan to trade now but I want to have some good names for testing. I certain try their demo first and when I see I am good enough to gain profit, then I would open a real account to trade BO. If I lose, that's my fault not the broker.
 

bablogfx

Confirmed HotForex Representative
Oct 24, 2013
190
3
27
It is great that you go the length to trade binary options. Most of traders hate them regarding as gambling, "playing deal". Till recently I have been adhering to this opinion as well, but my spot trading broker Hotforex founded Optiontrade binary broker and I decided to give it a try. After testing I can say that it requires far less margin, more user-friendly (no complicated looking MT4 platform swamped with coloured lines aka indicators) and allow to CONTROL risk confidently. You know how much you win or how much you lose. Flexibility of "betting" ( if we can call it like that) allows you to choose events with different odds of expiring to your favor, thus earn more or less money. I am planning to move to Optiontrade once and for all, because spot trading seems time-taking and heavily mind consuming task. Good luck!
 

Ryan Cruz

Trader
Sep 25, 2014
7
0
12
In my opinion, i think that binary option is ok too.
You can lower your risk in the First place as you will only bet what you can only afford.
In some brokers offers conciliation if you lose.
Like with the broker i'm using right now(infinity space inc), 90% payout and 10% conciliation.
 

garena

Master Trader
Jan 28, 2014
243
5
54
This field is still new with me so I don't want to take risky with it. But if I must choose a broker, I would choose a regulated one with many good feedback, even real withdrawal proofs by real trader. And I think binary option service provided or a binary option broker powered by an authority forex broker or regulated by a good economic association should be better than an independent broker like alpari or optiontrade powered by hotforex
 

inggo

Banned
Jan 13, 2012
498
12
59
Philippinese
im looking at binary trading as an option, not so sure yet i still need to study it and it might mess up things with my forex trading lol, i've heard about optiontrade, lets see in a couple of months if i decide to venture into trading options
 

Dmitriy Enrst

Active Trader
Mar 14, 2015
186
2
34
To me, binary options is a lottery. I tried to trade with them and failed.It is hard to stick to a certain strategy with them. It is rather a matter of luck than a calculation.
 

bablogfx

Confirmed HotForex Representative
Oct 24, 2013
190
3
27
To me, binary options is a lottery. I tried to trade with them and failed.It is hard to stick to a certain strategy with them. It is rather a matter of luck than a calculation.

Traders that succeed in forex trading can succeed in binary options too. It's all about market prediction and if you're good with that, gambling feature will be eliminated whether it's forex trading or binary options.
Sometimes I use BO Optiontrade to hedge my forex position on Hotforex, it require less margin and with proper money management calculation can reduce trading risks from touch-and-go fx positions.:)
 

joescholz

Banned
Aug 25, 2014
45
5
0
Binary options is just like forex trading but with more sequence; a person with a good knowledge of forex will sure make it big trading binary options.
 

f4forex

Active Trader
Oct 8, 2015
231
2
29
40
Binary options trading is much easier than forex trading as it does not involves hassling to stop losses, take profits, spread & leverage issues etc., moreover the risk of loss is also known in binary options trading. But like other trading businesses, it also requires analysis based conclusions and hard work too for being successful at it otherwise trader will lose their money and simply say that binary options is like gambling or lottery ticket.
 

Lukas Schmidt

Trader
Jun 27, 2016
47
5
9
47
I have met people that have strategys that work in binary options.. If they do start making money all the time, they get banned by the brokers
 

MdJamalMolla

Master Trader
Jul 17, 2014
30
1
49
Bangladesh
I don’t know what to say about Binary business, but my initial experience was forgettable one with FMbinary, I invested 200 USD and lost around 50 USD then I wanted to just take rest of the money as I was not happy, but their limit was 200 USD for withdrawal as well which was very strange, so I tried to contact the support service, but never got any reply and unfortunately I lost all and since then never went with Binary Option trading since majority of the brokers have 150-200 minimum.