There are many different ways to make money online. Here are the top reasons why binary options trading is becoming more and more popular among those looking for an honest way to make money online. If you already trade stocks, then learning how to trade binary options will be much easier for you because of the similarities between trading for both types of options.
Here are the top 6 reasons why you should start binary options trading in 2021.
1. Huge ROI
Because of the higher risk involved, binary options trading offers higher returns. The average return is from 60 to 90%, whereas Forex (foreign exchange) trading offers 10%. The risks of investing in binary options are typically higher than with other market investments.
There’s a reason why binary options are known as the riskiest form of investment. However, for those who are willing to take risks, the profit potential is also much higher.
2. Known Profit or Loss
You know the exact amount of profit and loss in trading. You’re never risking more than the amount you initially put at risk. The key to ensuring you do not lose more than you are risking on a trade is to always make sure that the only amount at risk is the one you had chosen to risk.
If you win at binary options, you know for sure the amount of money you’ll make, and if you lose, you know for sure how much money you’ll lose. Unlike in forex trading, it doesn’t matter whether a price is moving higher. With binary options trade, you know the exact amount that you can gain and lose.
3. Returns Even On Loss
In some cases, you can make a higher profit on binary options than you can in other investments because there’s more money at stake. However, you also risk losing more money if the market moves against your bet. You will get a small return on loss from the brokers to minimize the loss.
For example, on a stock investment market goes against your call, you will still receive from 5 to 15 % of your initial investment back. Instead of losing your entire initial investment, you may be able to get back at least 5 to 15%.
4. Simple Trading
With the rise in popularity in binary options trading, many websites have been developed to appeal to new traders. These websites include demo accounts for practicing trades and live chat support so that you can get help with any questions during the trades.
When you trade binaries, you simply need to be right once out of two possible outcomes. If you’re wrong, your loss is limited.
In binary options, you don’t have to estimate how far a particular asset will move. You only have to decide whether it will move at all.
5. Quick Profits
One exciting feature of binary options is the short duration of the options (e.g. one hour). This is different from other asset classes, where you can’t always trade so quickly. You can have more trades per day and therefore have more opportunities to earn money.
Most binary options have expiration times of 15 or 30 minutes. The most exciting binary options are the ones with an expiry of 60 seconds. Many people trade binary options for a living, including ones that pick very short durations.
6. Free Demo Accounts
There are some binary brokers that offer free demo accounts. A demo account is basically a virtual trading account that operates just like the regular accounts you find with most brokers. Demo accounts are very useful for beginners since they allow you to test the platforms and try out binary options trading strategies without having to risk real money.
A trial account for options is available where you can trade with fake money. You don’t have to put in money upfront, and you only have to pay when you make a withdrawal.