Binary options make things simple for the investor, so it's not surprising that many people find trading binary options an attractive investment.
With a binary option, there is a fixed risk, reward and time frame, which really simplifies the variables a buyer must consider. There are just a few decisions an investor needs to make with a binary option: the particular asset, the direction of the price movement, the amount of the investment and the expiration date. It does not matter how high or low a price rises—it's the direction that the price moves that matters. If the buyer decides the price will go up, buys the option, and the price goes up by a mere cent by the expiration date, the buyer receives a fixed, full return on the investment. A profit of 70% can result from a single pip change.
There's no speculating when to buy or sell binary options, and the buyer does not stand to gain any more profit from a bigger price move. The risk and the reward depend on the initial investment. The more money invested, the more a buyer stands to gain or lose, but it's the buyer that determines this amount.
Binary options also don't necessitate a long wait before an investment can pay off. The expiration date for binary options can be hourly, daily, weekly or monthly.
Working with a binary options broker tends to be very fair for the buyer. Brokers do not charge a commission, and binary options trade at the spot price of the asset, with no bid/ask spread. For the buyer, this means no parts of the investment are shaved off in the trade. Furthermore, many brokers offer a small refund for investments that do not pan out.
Basically, binary options don't require as much research or knowledge of finance, and they don't demand a hefty amount of capital in order to pay off for investors. An investor decides how much to invest and picks a direction the price will go, with the option to find out the result within the hour. The decision-making is less complex, and since binary options pay the highest yield of any short term, fixed investment, they can result in major profits.
Here are some super tips to make Forex profits:
- Plan transactions in advance.
- Be patient while waiting for profits to show up. It takes time. There is no quick fix.
- Set careful stop-loss orders to sell if the trend is we...