Trading within stocks, forex, options and CFD’s (CFD’s can only be traded in if you are outside the US) to name just a few ways to trade, has always been popular, but as time goes by, it is getting easier. Whereas historically the only way to trade was through a registered broker, today people are able to bypass brokers and do their own trading through the use of stock trading platforms and software.
As I mention above, there are numerous ways to trade and make money (as well as lose it!) and so the question has to be asked, which way of trading is the best way for you? Well, you will see in the navigation, that we have provided you with an assortment of information on a number of various trading options so you can get a detailed explanation as to what exactly each trading type is and whether it is suitable for you, depending on your trading education and experience. We also discuss the benefits of using a stock trading software if you feel comfortable trading without the using a qualified and registered broker.
We want to point out that we are not advocating self-trading.We strongly recommend and advise that if you have never invested through trades before, you do use the service of a fully qualified and registered stock broker. However, if you understand the risks as well as the benefits of trading yourself, and it is something that you want to do, then hopefully the information in this section of the website will help you.
We will be adding to the navigation, various reviews of the numerous investment services and providers for self-trading so that you can assess the best trading provider for you.
There are numerous reasons as to why people trade. It can be either to invest for their future, particularly their retirement, or it could be to make money today. If you are looking to do the latter, (known as day trading) then you need to be aware that trading with a view to making money on a daily basis comes with a high level of risk. Whereas a job provides daily income, being a day trader does not provide any guarantee of regular income and therefore, should not be considered unless you 1. know the risks involved 2. are prepared to potentially have more days of losses than gains and 3. know what you are doing.
There are numerous benefits to trading, such as building a strong financial future and diversifying your investment portfolio and like anything in life, if planned well the risks can be low. But also like anything in life, there are risks to trading and as long as you don’t go into trading with your eyes shut and without all the information, you won’t eradicate risk, but you can keep it to a minimum.
Trading can be fun and rewarding, enjoy it, learn it, take your time and hopefully the financial rewards will be very beneficial for you.
Why Trade in Binary Options?
A lot of investors are attracted to this kind of trading because its return potential is greater than other trading instruments. A binary option can give you a return of 60-90% while FOREX can only give you 10%. To know more about what binary options can give you, continue reading.
If you are a new investor and has no previous experience trading, binary options are a great way to start your investment. Unlike other trading investments, binary options only require you to decide between two outcomes. In addition to this, a lot of websites are now offering user-friendly interfaces that can significantly help you with trading. There are live chats for your concerns while trading, demo accounts, and video tutorials that will make you understand how to trade.
Quick Turnover And Faster Payouts
Do you want to get profits faster? There are binary options trading software that enable you to trade in 15 or 30 minutes. The rapid turnover of binary options will make you feel the adrenaline and keep your pocket full. If you are feeling adventurous and daring, you can even try trading 60-second binary options. Quick payouts will enable you to enjoy your profit without having to wait for a very long time.
Having Fixed Risk And Known Reward
One of the biggest worries of an investor is losing the money that he or she invested. However, a risk is a part of investing. You might not get lucky sometimes, but you can also earn more profit next time. With binary options, investors will know how much money they are risking in their investment and how much is their potential benefit. This feature is very appealing because you won’t have to worry anymore about the changing amount of money, unlike other trading instruments. Binary options let you see your potential income or loss more clearly, and that makes investing easier for investors.
Returns Even When You Lose
To make binary options even more inviting, brokers made a way to compensate for the higher risk for this kind of investment. As an investor, you must be wise when spending your money on this sort of option. Some brokers offer little returns of the amount that you invested if ever your investment did not earn any profit or lost in a bet.
You might be able to get a 5-15% return on your invested amount instead of losing 100% of it. Even though the higher risk makes binary options intimidating to some people, one must understand that taking risk is a must in every investment and you just have to be brave enough to earn your profits in the end.
Binary options are high-risk trading instruments that are slowly gaining popularity today. It is very straightforward and easy to manage. Even with the high risk, investors still like this option because of the higher profit that it can give and the fast turnover that results to quick payouts. If you want to start investing in binary options, you should understand these advantages to maximize your investment.
The Differences Between Options Trading And Binary Options Trading
If you are thinking of getting into trading, you might be wondering what the difference is between options and binary options trading. There are some differences that you need to know before trading. Once you know what the differences are you will be able to determine which trading is better for your situation.
The Pay Out
The first difference between options and binary options is the payout. Binary trading will have a payout which is predetermined when the trading contract and could be between 50 to 90 percent if the contract expires in the money. If you are looking at a vanilla option with binaries, the payout will be variable and will depend on the size of the assets movement after it has passed the strike price.
This is different to traditional options where an investor will pay per contract. The profit or loss of the contract will depend on the number of pips between the strike price and the expiry level. The payout will not be fixed at the start of the contract.
The Expiry Time
Another difference that you need to know about is the expiry time of the trading. Traditional option trading will have monthly or quarterly expiry times. Binary options trading will have shorter expiry times such as hourly, daily, weekly or monthly. Binary options also allow you to trade 5 to 15 minutes before the expiry time.
The short expiry times allows investors to make an instant profit on their trades. This increases the flexibility of trading which is ideal for many traders.
Traditional options can be executed at any time up to the expiry time. Binary options can only be completed at the time of expiry. This means that when trading binary options, you have to hold onto it until the expiry date. More care will need to be taken with binary options because of this as you cannot sell the options once they have been purchased. In this respect, traditional options will give greater flexibility when trading.
Risk Versus Reward
When you look at trading, you need to consider what the risk to reward ratio is going to be. When trading all or nothing options, you will never lose more than you have invested in the trade. In some circumstances, you may be able to get a refund of up to 15% of the investment even if the prediction ends out of the money. Binary options will offer greater rewards for the risks when compared to traditional options.
However, there is one benefit that comes with traditional options regarding reward. A traditional option can be leverage to increase the rewards you get. This will also increase the risks of the trade and could result in a loss of more than the initial investments.
So as you can see, there are some differences between the trading of traditional options and binary options. When considering which options to trade you will need to consider the risks that you are willing to take.