In our previous article on creative ways to finance an independent film, we mentioned binary options as a potential way of raising capital. We have received overwhelming feedback from our readers who want us to get a little bit into detail about what binary options are and what their benefits are.
If you are familiar with stock trading, then binary options should be relatively easy to understand because they follow many of the same rules. What you will require is good knowledge of both the money and precious commodities market because this is the knowledge and insight that will form the basis of your trades. Binary options are considered a form of gambling because if the nature of the stakes as well as potential returns.
Let’s take a look at 4 benefits of trading in binary options.
#1There is a potentially high return on your investment
As the saying goes, high risk high reward, this is very true when it comes to trading in binary options and this is why it’s considered gambling. The average return for trading in binary options if it goes right for you could be between 60 and 90 per cent. This is way higher than what any forex trade or any other form of investment will earn you.
#2You have advanced knowledge of what you stand to gain or lose
The beauty about binary options is that you know right from the start what you stand to gain should market forces go your way or lose should they not go your way. This therefore means that you can risk just the right amount of money that you are comfortable of losing in the event things don’t go your way, but enough to earn you a really good return should things go your way. It’s not a game of guessing. Read this eToro review to understand more.
#3There’s still a potential for you to make a return even when you lose
Because brokers of binary options understand that the high risks involved in their trade may scare off many potential investors, a number of them will not want you to lose all your money therefore they are always willing to give you back a percentage of your initial investment. Some brokers will be willing to give you back anywhere between 5 and 15 per cent as an incentive for you to come back and try your luck.
#4 It has a very fast turnover rate
A very attractive aspect of trading in binary options is the very fast turnover rate. This is not the type of investment where you will have to wait a couple of days, months or years to know if you have made a return, it can be as fast as a couple of hours or a couple of minutes depending on the assets you chose to trade on. This therefore means that you can even trade a couple of times in a day with little amounts of money to avoid losing big.
We trust that this is helpful information that will help you decide whether binary options are an investment idea to consider or not. Just be sure to do your due diligence on brokers before you decide to trade because there is always a high probability of landing on a dubious trading website.