Why to trade binary options?
The reason why to trade binary options is not because they are easier to trade than other financial assets (maybe they are, maybe not) or because you can make more or easier money than in Forex or in Stocks or in traditional Options.
You want to trade binary options to make money, for exactly the same reason you want to trade Futures, Forex, Stocks or Options. It is just another way of trying to make money. As simple as that.
Are these features really differentiating binary options from other assets?
Quick expiry times
Expiries vary from 60 seconds to many months. True, but this is not only for binary options; you might go in and out in 60 seconds in almost every assets, and even less.
The investment decision is Up or Down, Above or Below, In or Out of the boundary, Touch or Not Touch. But also Forex is just up or down, which is even easier. Actually apart from some advanced strategies in traditional options, basically all the financial assets trading is all about “Up or Down”.
Trading in binary options can make you even 85-90% per trade, and several hundred percent in One Touch binary options. Also this is true, Many derivatives have these kinds of return, not only binary options.
Unlike Forex, where you can get margin calls, in binary options you can lose not more than the amount invested. This is true also for traditional options, not only binary options, or in stock trading when you go long and not on margin.
There is no need to activate stop loss or profit target
With binary options, you do not have to manage the exit, whether it be in the loss or in the profit. Also in this case, traditional options are like binary options
Finally, there is no need to calculate the number of shares or options or futures to buy/sell, you just need to set the amount you want to risk.
True, but I don’t think this is a major factor.
So, our answer to the question “why to trade binary options” is to “make money”, and to “why to trade binary options instead of forex or stocks or futures or options” is because “we like binary options”, just like you might like the other financial instruments better.
AS SIMPLE AS THAT!
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