Binary options trading has gained momentum over the past few years as a top choice for traders who are looking for convenience and high pay-outs. As with any other trading option, this is a risk, but with this type of trading, you are advised of your return on investment before investing anything, giving you an idea on what to expect your your prediction be accurate.

Binary options trading is usually a high or low option, you can also choose between two depths. If your prediction is accurate you get a good return on investment. The great news for merchants is that you can choose a timeframe that appeals to you, anywhere from sixty seconds to a week or more.

This type of trade does come with some advantages and disadvantages, the good news is that the advantages of binary options trading outweighs the disadvantages dramatically.

Advantages:

Whether you are just starting out in the trade market or you have been trading for some time, but are new to binary options trading, then you're probably going to want to understand all the advantages and why you should choose this option.

The main advantage to this is that you are in complete control of your investment. You can control how much of a risk you take, how much you invest and you know the return amount before placing any money into the investment. This is advantageous for those who are new to the game and are still getting their feet wet.

In most cases the minimum investment will be around $ 25 and you choose whether you feel the product will rise or fall. Before you make your investment, you will be advised on how much of a return you can expect on your investment, giving you some indication on what to expect your predictions to be right.

Another big benefit to the binary options trading over other options is the high pay-out. This type of trade generally provides a much higher return on investment than other options available. Traders can expect an eight five percent or higher return on their investment should they predict accurately, which is exceptional.

The next advantage which is appealing to so many traders is the short trading times. Trading times can vary from a minute to an hour and a day to a week or more, depending on what you select. If you are looking to test the waters, try predicting on something that will end within the hour and see how it all works, as your confidence grows, your learn the markets and learn all the strategies and techniques, you can move to longer trade times .

Many people choose this trade option because they do not have to make a high investment. Not everyone has thousands lying around waiting for you to take a risk on it, which is why the ability to trade with smaller amounts is so appealing. Traders can invest a number of smaller amounts on different assets, weighing up their risk dramatically.

The final advantage which can not be faulted is that binary options trading is an online trading option only. It is done through platforms which enables you to make investments, draw winnings and so much more. It's convenience, easy to use and is open twenty four hours a day.

Disadvantages:

There is only one major disadvantage to this type of trade and that is the risk involved. You get risk with all trades, but you can lose your entire investment just as quickly as it takes to get a good return on your investment.

This is something to be aware of, but luckily these options enable you to make smaller investments, reducing the risk dramatically.



Source by Owen Masters