Options Expert Jeffrey Kimbell answers Paul Berkowitz’s question:
I receive quite many questions as for the backbones of binary option trading and binary options themselves.
Well, it’s quite difficult to talk on something in short when you dedicate most of your time to it. But still, I will try to answer what I personally find in binary trading and why a lot of people find it attractive either. Just yesterday, I received another letter where one of my followers asked me about pluses of binary options and the reasons why he ought to try trading. So I decided to make a detailed generalized response which will satisfy most of the novices.
Paul Berkowitz asks: Hello Jeffrey! I walk around binary options but still can’t make up my mind and start trading at last. Why b.o. became more popular than anything else in the world of online trading? What’s the secret? But please, don’t say that the secret lies in millions can be won, I don’t believe it anyway.
So let us give Paul a full answer and do not say a word about winning millions.
A Full List of Advantages of Binary Options:
Did you ever try binary options trading? Perhaps you thought of this a little skeptical, since you probably heard about people losing their last peanuts while trying to trade. But today a reliable way of trading appeared, as well as to be able to make profits easily by trading binary options online!
Binary trading is easy for both the increase and decrease in the prices, after the expiration, you get a decent income, which in trading is called “option in the money”. A trader knows trading transaction commission in advance: it is always a fixed sum, that can be seen before positions are open on any platform or online broker.
So, you know in advance the risk and the income you can get after the option expires. Planning to trade binary options, you do not need to be a trading expert at all. You just have to choose the asset price to go up or down in comparison to the actual price at the time the option is exercised, which duration can last from 1 minute to a day.
Profits derived by an investor from binary options trading are much bigger than from any other type of trading. In most cases, on the expiration of the contract the return on investment is about 71%. This is really a very high return on the investment contract, which duration is from 5 minutes to an hour. More so, traders consider binary options trading is very interesting because of the short duration of the contract and a high yield.
As the investor does not buy the asset but buys the option, profits in this type of trading are overt for a wide audience that would otherwise make an investment only in stocks with high returns and rising costs. And besides, since the core of binary options trading lies in changing of the trade direction, and not in the price difference, investors can reap huge profits, even at the slightest movement in the market.
That’s all for now. Got any questions? Just ask the expert!