Digital Options Trading Introduction
Digital options, frequently referred to as "binary options" or "fixed return options" are similar to traditional options in many ways but also differ in some very significant ways. Digital options are quite simple trading instruments requiring no exceptional knowledge of or experience with trading or financial markets. Of course, superior knowledge of markets and trading does often lead to superior results but it is certainly not a prerequisite to being a profitable digital options trader. In this short article we will examine digital options, explain what they are, and explore how they are traded.
Digital Options Trading Highlights
- Digital Options Are Market Neutral Instruments
- Quick And Easy To Trade
- Strictly Limited Risk
- Small Initial Investment Required
- Digital Options Have No Commissions, Fees, Or Other Hidden Costs
- High, Fixed Potential Returns Known Beforehand
- Requires Only A Small Move In The Underlying
- Digital Options Can Be Traded At Any Time Of Day Or Night
- Trade On Stocks, Indices, Currencies, Commodities And More
Some Digital Options Trading Disadvantages
- Potential Returns On Winning Trades Will Always Be Less Then Potential Losses On Losing Trades (You'll need roughly a 55% win rate for profitability)
- Many Digital Options Brokers Offer Trades Which Amount To Little More Than A Roulette Spin - 60 Second Options To Name One. (We're fans of digital options here but we recommend our readers stay clear of these types of trades.)
- No Claim To An Underlying Asset (a possible disadvantage for some but for the majority not even an issue.)
- Some Regulatory Conflicts For US Based Traders (Our Uncle Sam can certainly be a nosy, interfering chap sometimes...)
Digital options trading can be a great choice for some investors or speculators but as with anything in life it too has both its drawbacks and strengths and isn't right for everyone. I currently trade digital options with traderush and so far I have no complaints and I really like their platform. My first withdrawal was just a tad slow but my withdrawals since that first one have all been prompt. My account manager is great as well and is always helpful.
3 comments:
nice
Thanks for this analysis of advantages and disadvantages of binary options trading. The analysis makes it clear why the binary options trading became so popular last years and involves more and more people. I'm going to try it as well although I have lot of doubts.
In every aspect or issue there is an underlying advantages and disadvantages and there is no way binary option could be spared, but with more helpful insight like this one and the one I use to read from http://www.ouranyoptionreview.com anyoption review site I am more convince that this money making scheme online is legitimate and could probably be a proof that you can easily make money without any hassles.
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