Introduction to Binary Options
Binary Options are type of options with a fixed payout and fixed deadline for expiry time. The key in trading process is to determine will the price of an underlying asset be above or below a target price.
For you to be able to accurately predict will the price go up or down is a specific time frame, it is advised to have some trading knowledge. This element isn’t too hard or even impossible, it just requires patience from trader’s side and invested effort.
For example, we strongly advise you to read as much possible broker reviews and to follow market news so that you can react in real time if certain change occurs in the financial market.
Quick PayoffWhere else can you get a 90% or more return on your capital in minutes, if not seconds? Payoffs can actually be higher, and there is always a possibility for a rebate percentage amount if you guess wrong. Many brokers also offer special weekly "one-touch" options with astronomical payoffs in the 500% range.
SimplicityThe decision tree is straightforward. You pick your asset class, expiration point, and amount of your position. All that is left to do is to pick the correct direction versus the targeted value provided by the broker. No other decisions are necessary, unless you want to take advantage of more complex betting strategies that your broker supports.
No Fees or CommissionsThe entire costs are borne by the spreads contained within the payoff rebate structure.
Risk management is not a problemYou set your risk tolerance at the point of execution, based on the size of your position. There is no additional downside risk. Some brokers may vary the amount of the rebate they offer based on how close you come to the correct direction, but these amounts are just a few percentage points in the overall scheme of things.
You will never get a margin callYou can only wager what is in your account. There are no decisions related to leverage or margin, no chance that, if the market moves against you and you do not react quickly, you may lose a small fortune in the blink of an eye.
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