Homepage

Why Binary Options Trading is better than Conventional Options Trading

Nowadays there are many people who want to start investing themselves in financial market, but they are still trying to stay away from binary option trading and miss out the greatest opportunities of making more money due to lack of confidence about the results of the trading and involved risks. Binary options trading is certainly a good starting point of expanding the earnings. Because binary options trading does not require the lots of knowledge and the experience that conventional options trading requires. In conventional options where the investors do not only have to predict the value of a particular asset, but they have to predict the scale of, that the value will go up or down when the time expires. In binary options trading, the investor only have to predict whether the value of a particular asset (currencies, stocks, commodities etc) will move up or down from the current value and apply call or put option accordingly on given time (before the expiration time of the option).

Depending on how the profits are made by trading in binary options, that can be divided into two categories which are cash or nothing and asset or nothing options. Cash or nothing - The investor receives the amount he/she invested plus the fixed profit in cash if the prediction is right. Otherwise the investor loses the money that is invested. Asset or nothing - The investor receives the value of the underlying security. Here, investor earn the rights, but not the obligation to purchase the underlying security asset.

Another fact that why the binary options better than the conventional options is that, in binary options the investors (even those who do not know anything about stock market) always have a 50/50 chance of earning profits (profits are usually range from 160% to 185%). However the legal advisers strongly emphasize to be very cautious when selecting a binary option platform. Because there are platforms which always try to get unacknowledged people into traps and ransack their money. Hence, beware if the binary option platform is offering an excessively high percentage for the invests and make sure the platform is already trusted and used by many people. Check whether the platform is using various certified encryption methods and procedures to safe guard confidential data of the investors or not.