Why Traders prefer Binary Options? Are they easier for beginners?
Those questions are just a clear example of what you can find in forums and online websites. Since the last few years binary options are becoming very popular all over the world
Where is the success coming from? simplicity! However there is one element that to be considered in online trading: the risk management.
The most important rule in trading is to be able to control your own risk or your balance will be halved in few days. When we trade in binary option we always know the maximum we can lose. If we invest $25, the maximum profit we can have is $45 and our lost can not be over $25. The “maximum lost” can be under control also in the traditional online trading using the stop-loss feature. We can found advantages in the volatility of the market.
In the classic online trading, for example, with a minimum investment of 0,1 lot we can have our stop-loss with around 25 pips and we have 20 euros profit with around 20 pips. During the day, the cross-Forex could move between 50 and 80 pips on the negative side and come back to target lately. In this case the trader will have a loss due to the stop-loss also if the target will be meet in the next few minutes.
With binary option you will know the result of your investments just at expiry time; prices can change up to a second before the expiry! That’s why binary options are an excellent way to control your own risk and all traders, from beginners to experts, can afford it!
Using binary option we can fully control our loss and will prices can change up to 1 second before the expiry of our position.
That’s why binary options are considered the best way to control the risk!i