The Pros and Cons of Binary Options Trading

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Very popular nowadays, Binary Options Trading has managed to draw participants and potential investors from all over the financial and trading community and even those who wish to experiment and dip their toes in the investment opportunities offered by this new way of trading. Below, we will attempt to understand reasons behind the immense popularity and also encroach upon some of its cons so as to highlight both sides of the coin.

The Advantages

Quick Payoff: This is perhaps the one advantage that’s the most attracting. With this, you can easily score a 70% return or more on your capital in mere hours! Most of the times, payoffs can be higher with the possibility of a rebate percentage amount in the event that you guessed wrong.

Ease of Execution: With this trading option, you have the ease of simplicity and execution in your corner. This means that you don’t have to worry about complex timeframes, leverage decisions, or discover co-relations. The working is fairly straightforward, where you just set a few variables, see how other traders are betting and then execute from a single ‘dashboard’.

Better Ability to Manage Risk: This is largely due to the settings, i.e. risk tolerance set at the point of execution and based purely on your position’s size. There will be no additional downside risk to this arrangement.

You Won’t Get A Margin Call: The one advantage that proves to be the most attractive and useful is that you won’t be able to wager an amount that your account doesn’t hold in the first place. There are no decisions that you will have to make related to margin or leverage, which means even if the market moves against you, where you aren’t in any position to react quickly, there’s no chance of you losing a small fortune in the process.

The Disadvantages

High Payoffs Automatically Mean High Risk: One quality of this platform i.e. a much shorter time frame also means that there is a high chance of constant market movements that will be harder to grasp and might not prove to be in your favor.

More Important Trading Tools Being Unavailable: You, as a trader, may want a platform that has more trading tools so that decisions are supported more easily. While online binary options trading platforms do provide a wide plethora of learning materials, support options and commentary, still the primary ‘dashboard’ doesn’t include the tools needed to make careful and guided investment decisions. Chances of easily getting caught up in the hype and making a quick decision that might prove to be bad, can cost highly in the long run.

When all is said and done, this particular online trading platform does offer an extremely high payoff potential with risks attached on the front end. Still, the best advice that can be given is to invest in a platform that offers a free ‘demo’ system and practice extensively before putting your hard earned capital at risk. To learn more about this platform and how best to lower risks, pay a visit to ETX capital!

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