Traders who trade in stock market are finding it very easy and interesting to trade in Binary options. Investors have gone crazy for binary options as there are not trading costs, profits are huge and the duration to realize such high profits is short. People who have designed binary trading have fulfilled all the wishes of the traders!
The way the craze for Binary trade is going, it is leading all the investors to those brokers who provide platform to trade in Binary options. The scope of Binary options includes trading stocks, Forex trade, indices and even commodity markets. So, investors get opportunity to trade in all famous stocks like Google, Microsoft etc. and at the same time they can also trade in most traded pairs like USD/YEN, GBP/USD etc. In this way, the investors get opportunity to broaden their portfolio and thus spread the risk involved.
There is one nice feature regarding trading in Binary option is that it is just like trading in Mutual funds where the trading is done in terms of dollars and not in number of shares. This makes the trading easy for the investors as they can decide as to how much they can invest in Binary option trading. The complex number crunching is also not required as there is no calculation of any brokerage to be done. If an investor is investing hundred dollars, then he is investing the entire hundred dollars and not paying any portion towards any expenses to get the trade done. It is entire-money investing.
The other best part about trading Binary options is that you can start your investment even by hundred dollars and start earning profits which is a very small amount if you were to trade in the traditional trading as the profits would then be negligible. The other important thing that should not be forgotten is that there is no commission and so entire profit earned is of the investor.
Trading in Forex market carries a high amount of risk with it. The loss or profit is not decided at the start of the trade. Hence there is a chance of very high loss. The profit or loss depends directly on the magnitude of change in the currency pair’s exchange rate. This is not the case with Binary option trading as the profit or loss is predetermined. So, the investor can invest his money accordingly. There are no chances of any surprises. Trading in Forex market involves brokerages and commissions. This leads to an increase in loss as the burden of the commission also has to bourn by the investor along with that of loss. The capital required to make good profits is less in binary option trading and so even a small investor can also trade in financial markets. On the other hand, a small investment doesn’t lead to sufficient profits in Forex market as it needs huge capital for better profits.
Due to its simplicity and limited risks, Binary option trading certainly has an edge over Forex trading.