Binary Option Trading Major

You may be asking this very question. What is so special about binary option trading? Probably the uniqueness of trading binary options is that the name binary, which represents ‘zero’ or ‘one’, also represents the method of trading where the only possible outcomes are ‘win’ or ‘lose’. In other words there are only two outcomes possible. It is for this reason that they are becoming increasingly popular and that analysts are forecasting that volumes will soon surpass those of the current on-line foreign exchange transaction volume.

Simplicity & Functionality

Unlike traditional market trading, binary option trading offers the investor instant gratification and because it is mainly conducted on the internet, investors can trade binary options from any computer or smartphone which has an internet connection. This provides you with the ability to invest in a financial asset in much simpler and more straightforward way than you would normally need to do if you were trading in more traditional markets. The upside for you as a trader are, that you don’t have to wait long for the result of your trade to be known, trading is simple, it’s low risk and it’s an exciting casino like experience, plus it has the potential to make you a lot of money. The risks in comparison to other financial markets are very low and dependant on the way you want to trade because you know from the beginning of a trade how much you have invested, and how much you could lose if the trade goes wrong.

Dynamic Trading

Unlike other trading platforms which are used for other traditional markets the binary options trading platform allows you to choose three of four ways to trade a binary option. In the foreign exchange, stock and commodities markets you can only buy or sell the asset. However, with binary options you can choose four ways of trading. Firstly you can choose to buy a simple call or put for an expiry period of an hour. Secondly, you could choose to trade the ‘touch’ method, where if the price touches the price before expiry, you have specified then you win. Thirdly, you could choose to trade the ‘range’ method, where you specify the upper and lower ranges of an assets price and as long as the price expires within that range you win.

Risk Management

Finally, many trading platforms offer the investor the chance to sell the option prior to the expiry time, so if you as a trader see your option is in a losing position, you can sell it for less of a loss than if you held the option until expiry, or you can sell it when the option is in-the-money, and take a percentage of the potential profit rather than waiting until expiry.

This is why binary option trading is special. It is simple, it has a low risk, you know your potential profit of loss from the beginning, it is short term, and there is a variety of ways to actually trade. And we’re here at Banc De Binary to walk you through it all.