Binary options are an exciting new trading concept in the financial world. There are several reasons for its appeal:
RISK MANAGEMENT: Traders know ahead of time their amount of possible loss or gain. The risk is less in comparison with more traditional trading, offering large potential gains with minimal loss. Markets Pulse gives traders an additional benefit by providing a protection rate of 15%, meaning that a trader can not lose more than 85% of his investment in trading.
SIMPLICITY: This type of trading provides a great way for inexperienced traders to start trading. Traditionally, market trading has been done by those with deep understanding of finance and market change. Conventional trading involves winning or losing money on investments based on the amount of increase or decrease in the price of assets. In this new and intuitive type of trading, traders predict the direction of the market. Binary options also have a much shorter shelf-life than futures trading or stocks. Traders make predictions on the direction of the market within a day, and sometimes within an hour.
LESS REGULATION: The regulations for this type of trading are less strict than other conventional forms of trading. Binary options trading are available to anyone with Internet access, and options are traded round-the-clock. If companies find regulation to hamper business dealings, they can easily move offshore or to another location with less regulation.
RANGE OF OPTIONS: It offers a range of different products to trade- from financial instruments to sports and the weather. Currently there are a limited number of trade choices within binary options, but as time progresses and this type of trading becomes more conventional the trade choices are predicted to increase.
Source by Tamar Weiss