Trading with binary options brokers provides high profit opportunity, limited risk and a wide variety of instruments and assets to trade.
Trading binary options means to invest the money in various types of instruments such as: currency pairs, indices and stocks or any other kind of commodity available on the trading market.
The name binary for the trading options comes from the instruments’ trading type which is a two-outcome type. This means that the trader or his broker can bet on two outcomes which he considers to be profitable for the investment he plans to do.
All the instruments can be traded through a binary options broker or trading platform (which is also called digital broker). The binary options appeared on the trading market in 2008 as it was considered that they are a good form of investment, with reduced risk for the investors.
There are usually two types of options, which are in fact methods of trading binary options. On one hand, it is the Call option and, on the other hand, it is the Put option. The first one is considered to be when the instrument is expected to end above a price that the trader sets as a minimum. The second option is considered to be when the instrument is speculated by the trader to be below the minimum set price.
A good broker who trades his clients’ binary options would be able to invest into a high number of assets, because the assets’ variety ensures a bigger profit for the clients’ investments.
Thus, a trader has to be able to invest profitably into different types of assets (this means that he can trade easily stocks or indices, Forex or any kind of commodity his client would prefer).
There is also another feature of the binary options trading, feature that makes the difference for a broker. This is the expiry period that he can offer to his clients / investors. By definition, binary options are limited, which means that the broker that trades binary options sets an expiry time (a pre-set time limit), before the options would expire. This time can vary between 15 minutes to a few hours, but an excellent broker or trading platform would be able to offer his clients a week until the binary options expire.
A professional and very popular broker may provide his clients with a very high payout percentage (which can usually vary between 75% and 90%) and this can be available for both won and lost investments. There is also a minimum 5% to 10% which a broker or platform turns back to his investors, in case the trade was not successful.
There is also the variety of payments and withdrawal options and methods that a binary options broker should be able to offer to his clients. Thus, the client may be able to choose among PayPal, credit bank transfer, Skrill/Moneybookers, Neteller or bank transfer as a minimum of choices.
A good broker has to know how the Forex market works, to know all the strategies on the market and to be aware of all the financial indicators, as the experts say that the Forex trading complements the binary options trading.
So, trading with a binary options broker is very profitable as the variety of assets and instruments that can be traded is large. An investor, through his or her broker, can trade all from Forex to commodities and all with one single broker or one single account on a binary options trading platform.