There exist lots of advantages to use binary options in order to speculate on financial markets and make money. Binary options are really easy-to-use instruments that were designed for active traders who want to profit from small moves in the underlying asset price. For those new to trading, binary options are the single most simple alternatives on the market, really straightforward and with clear payoffs.
Main advantage: Binary options are really simple to understand
Compared to regular options, binary options have the advantage of being extremely simple to understand. You only have to choose an underlying asset, a maturity and a direction. All the other characteristics of regular options are not required with binary options (strike, delta, volatility…). The payoff is really straightforward, either you earn the pre-agreed return, either you loose your invested amount (you may eventually recover a return on loss or refund). With regular options, the gains and losses are not predetermined. They are conditional to the price of the underlying at maturity, which leads to complex formulas and active risk management needs.
Binary option are secured instruments
One of the other advantages of binary options is that you can never lose more than your invested amount. This is not the case for the majority of popular retail trading instruments (CFD, forex, turbo…). If you decide to open a binary option trading account, you know that you will not risk losing more than your initial deposit. This is really reassuring for those new to investing.
Binary options can return huge profits
Compared to most financial instrument, binary option performances are not influenced by the magnitude of the asset price move between the moment you open the position and the moment you close it. The asset price just need to close above or below the opening price depending on the option type you selected. You can earn returns from 60%to 80% with underlying price moves of less than 1%. Binary option is the only instrument that allows such performance and this represents a major advantage for retail traders.
No commission and full broker support
There is absolutely no commission in binary options trading. The broker already takes into account its remuneration in the return it offers you. If you decide to invest 50£ on a High binary option on the GBPUSD with maturity 60 seconds, only 50£ will be debited from your trading account in case the GBPUSD goes down after 60 seconds. Moreover, all the recommended binary option brokers are providing a full support to new clients. You can trade 24/7 and reach your broker via phone, chat or mail at any time of the day should you face any problem.