It has been noticed that in today’s market, traders are more inclined towards binary options than other forms of trading. This is not surprising considering the number of people who have taken up to binary options trading, ever since it was introduced back in 2008. The general consensus among the trading community is the binary options are the most profitable among all the different forms of trading options available. Also, you do not have to be armed with extensive knowledge about the market and its nuances to be successful in binary options trading. But are all these reasons really true? The subsequent paragraphs will reason out why binary options are so popular.
‘All or Nothing’ Assets
One of the most attractive features of binary options is its simplicity. There are no complicated rules, clauses and sub-clauses that you will have to be aware of before stepping into the trading arena. Most of the times, you can either double your investments or lose everything. Also, there is no tricky analysis involved in the trade when you consider all the factors, which could take the trade your way. When an investor takes a risk, he/she will be exactly aware of the magnitude of the risk. The only thing that you must consider while performing the trade is the price of the asset you are trading.
Four Types of Binary Options
There are basically four types of binary options available. They are called range, put, one touch and call. Call and put are also called as above and below respectively. Out of the four types mentioned above, the call and put options are most used by traders around the world as they are the simplest and the most profitable options.
When you see a trading platform, you will see assets which are marked either by upwards or downwards arrows. These are the call and put options. While trading with them, profits will range around 70% and higher. A trade will last for at least 15 minutes. However, the option trades can last up to 30 days or even higher sometimes. Also, there is no need of a huge initial investment if you want to involve yourself in binary options.