Individuals interested in the world of online trading and institutions alike should learn more about binary trading platform. For starters, you should know that this type of trading platform is web based and easy to use. Hence, there is no need for downloads, occupying precious storage space on the computer. In addition, there is no need for previous experience in the trading market. Furthermore, as the developers constantly trade binary options with investors, rest assured that it is safe and secure.
Binary options, also known as digital options or fixed return options, have caught on in the past few years due to the many advantages they can provide. In essence, a binary option can be defined as an estimate on a prediction market. As their name indicates, binary means that investors will have two outcomes on an investment that are known to them.
Some of the benefits worth mentioning include:
- The return is known from the start
- There are no liquidities or execution issues
- A plethora of expiry points
- The possibility for the return of the investment even though the binary option expired
In case you are wondering, there is no catch. As long as the asset is being traded in the market, then you can trade binary options. However, it is important that you read and understand the terms and conditions for binary option platforms so you understand the entire process. In addition, it is the also the perfect opportunity to understand the distinctiveness between the real time market prices and the ones offered via binary options trading. Take note that once you have purchased a binary option then you will need to hold onto it until the expiry rate. Therefore, it is highly advisable that you are careful when purchasing a binary code, as once bought it cannot be sold further.
The binary option platform is a rather new type of investment where, instead of purchasing an actual asset, you make speculations and estimations on the direction the asset will move. In a nutshell, when purchasing a binary option, the buyer earns the right to acquisitioning an asset in a set period of time. For instance, let’s say you want to buy an Intel binary option for $100 and bid that by the end of the day, the shares prices will be higher.
At the same time, the binary option trader offers a 15% return if you are wrong and 71% if you estimate correctly. If you are right, then you gain a 71% return on the investment, meaning $171. If you were wrong, then you will receive $15. Therefore, immediately after you purchased the binary option you will know that you will receive either $171 or $15.
It is important to note that there are two unique features proprietary to the binary options trading. For instance, short-term multiple expiry dates denote more flexibility regarding the investment options and also instant profit for the investors. However, the chances of success for the investment will increase if you stick to the best-known market. To put it simply, if you have previous experience in trading oil, then trade binary options on oil!