Here at The Binary Options Experts, we believe in the power and simplicity of binary options to create cash flow and financial freedom. So today, let’s talk about what makes binary options a real investing choice for the average person.
Binary options are growing ever more popular with professional day traders. Why? Because this style of trading simply involves predicting the future value of an asset.
As the name suggests, there are only two possible trade outcomes: either the asset will have a value higher than its value at the beginning of the trade, or it will have a lower value. In addition to offering only two possibilities on which to base the trade, binary options trading also gives you only two outcomes for payout: either you get the price you agreed upon…or you don’t. Because of this, binary options have also been called “all-or-nothing” options.
The process of trading binary options is quite simple and involves minimal steps. First, you choose the assets you wish to trade. Assets that may be traded include foreign exchange, indices and commodities, among others. The second step in trading binary options is to choose whether the value of your chosen asset will go up after the trade expires (call option) or down (put option). The next thing you will need to do is to set the amount you wish to trade, as well as the time at which the option will expire. Then simply wait for the outcome of your contract and collect your payout if you are successful.
Trading binary options offers many advantages over other kinds of financial instruments. The first — and most likely the reason for the growing popularity of binary options— is its simplicity. Your trade is a simple win or loss situation. There are only two possible choices to choose from. You don’t have to get into too many details and you only need to work out what direction your chosen asset will take in the short-term future. This makes it easy for even inexperienced traders to earn profits. Of course, you need to do some studying to understand how the assets move in the market, but the amount of study you have to do is less than in other areas of trading.
Despite the simplicity, trading binary options can be more profitable than other financial instruments. Traditional stock options need to mature before you can redeem high earnings. With binary options, you can collect a large profit – on average, the rate of returns for binary options ranges from 75 to 85 per cent – within a much shorter time frame.
Which brings me to another advantage of trading binary options. It is only a short-term investment. You can make profit in just a few minutes or hours – you don’t have to wait a long time and suffer unpredictable or unfavourable market fluctuations. This means that by the end of the day, you already know exactly how much profit you have made.
So there you have it – why we think binary options are an excellent vehicle for creating cash flow and financial freedom.