The Advantages of Binary Trading
Binary trading has taken the world by storm over the past few years as day traders who have been used to scalping miniscule returns for small stock movements… are now able to generate returns up to 90% for these same small stock movements through binary trading. And trust me, these earnings add up in a hurry!
In its most simple form binary trading is a direction based, win loss proposition. If the trader is correct in picking the direction of the underlying asset in a given time frame he/she will win a set percentage (typically between 60% and 90%). On the other hand, if the trader is incorrect in the prediction, he/she will lose anywhere between 85% and 100% of the trade.
Keep in mind in binary trading the magnitude of the underlying asset move is meaningless, the direction is all that matters. This can best be described with an actual example of how things work.
Binary options trading example:
Let’s say a trader thinks the price of Google is going to rise over the next hour, he/she could purchase a binary call option expiring at the top of the hour, at Google’s current price.
If the binary call option was purchased with shares of Google trading at $600, the trader would generate the winning return percentage (60-90%) if shares finished anywhere above $600 upon expiration. So whether shares of Google finished at $600.01 or $699 the trader would only generate the specified winning percentage. This is the essence of binary trading.
Is binary trading right for you?
Who is exactly using binary trading as part of their daily activities? The short answer – anyone who’s interested. People from all walks of life, from all around the world and with all sorts of backgrounds are trading binary options every day.
The only real requisite is that you take an interest and learn to trade (it’s fun and easy). If you’re interested in learning how to trade, click here to watch the free video I’ve prepared to show you the ropes and introduce you to one of the most powerful and accurate trading systems available anywhere.
Are binary options a good choice for experienced traders?
Absolutely. Stock day-traders and forex traders alike have become big fans of binary trading. Their biggest advantage is the ability to forecast price movement over short time intervals by reading the charts and doing manual calculations.
Expert traders also use binary trading as a hedging instrument. What I mean by this is instead of closing out a trade that is going against them, they may first consider placing an appropriately sized binary trade in the opposite direction of the original trade to offset potential losses. This is a super effective way to mitigate downside portfolio risk. In many instances not only does an effective binary trading hedge limit risk but it also increases overall profitability.
And that’s what I call a win-win scenario!
However, the gap that comes from their experience vanishes when the new trader is following a proven trading system that takes care of the grunt work. I have developed such a system and for a limited time, I’m allowing my readers to try it absolutely free. Click below to watch the video to discover how to get started in binary trading today.