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Binary Options Benefits Vs Risks

Benefits

Binary options are a firm favourite with today’s traders for good reason, investors like the fact that it gives them clear cut choices within a short, precise period of time. Traders never have to wait very long to discover if they have made a profit from their trade.

Trade Binary options knowing that you do not have to pay a penny in costs, benefit from zero spreads, zero commission and for those who like to hold longer term positions there are absolutely no overnight financing charges or hefty margin requirements.

TraderWorld’s unique trading feature allows you to make up to 75% profit in just 60 seconds. Additionally, you can take advantage of both rising and falling markets giving you more chance to make money.

Due to the inherent nature of Binary Options, when trading with TraderWorld you are always in control of the investment. Therefore, you know ahead of entering a position the potential pay-out and you can never lose more than your initial investment. Trading binary options also completely eliminates the risk of being in a margin call due to insufficient funds in your account so there is no risk of you being stopped out of your trading positions as a result of this.

TRADE GLOBAL MARKETS

Trading Binary options opens you up to a far greater range of assets with a more affordable entry level whilst also giving you the opportunity to earn far greater returns. For example, If Google stock was priced £50 per share and you had £1,000 in your budget, you would be able to buy 20 stocks. If those same stocks go up to £55 your gains will be £100 (20 stocks x £5), giving you a profit margin of 10%

On the other hand, if you were to invest that same £1,000 into a binary option with a 75% pay-out you would make back £1,750, should that option expire in-the-money. As you can see, this makes it far more profitable than if you were to purchase the stocks outright.

Risks

As with any investment the trader must be aware there is a chance of the position going the wrong way resulting in the loss of your initial investment.

We strongly recommend to our clients only to trade with what they can afford and also to err on the side of caution.

Binary options still present a much safer option than leveraged products as the investor is aware of exactly how much money is at risk before the trade starts. If you buy an option for £100 your exposure will only ever be £100. If your trade is correct you stand to gain up to 85% profit. However, if you trade goes wrong you will only ever lose £100 and no more guaranteed.

This differs from leveraged products such as Spread Betting because your exposure is enhanced. For example, Trade £10 per point on the FTSE priced @ 6500 and you stand to hold an exposure of £65,000 meaning your maximum downside on the trade is £65,000.

Invest with the knowledge that your profit is not dependent on large fluctuations in the market, predetermined pay-outs mean that if you buy the FTSE @ 6500, all you need is the price to rise above 6500. Therefore, even if it reached 6501 at expiry you will still profit the full amount.

Simplicity is vital to helping you understand the risks with trading Binary Options. With no hidden charges or spreads and transparent pre-determined pay-outs allowing you to clearly see what you stand to profit or lose, helping you to better plan your risk management strategies.

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