If you are an ardent binary options trader, you must have noticed by now that trading binary options is more advantageous compared to other online trading ventures. Over the past few years, binary options has edged other online investing ventures like forex in almost all trading aspects. Below are some of the advantages of trading binary options.

High potential returns on investments

Binary options trades are usually characterized by high risks. Owing to the high risk, binary options trades have high potential returns which happen to be the highest when compared with other traditional investing ventures. Although the payouts offered depend on the broker used, they usually range between 60 and 90 percent.

Risks and potential returns are known on commencement of a trade

When placing a trade, a trader knows exactly how much he/she can lose in the event that a risk occurs. A trader also knows the potential profits of a given trade if it eventually ends in the money. Uniquely, the risks and payouts are fixed. Meaning, in case a risk occurs, its scope of impact is restricted to the invested funds and does not affect funds in a trading account. Additionally, the payout is always constant regardless of magnitude of change of the market price. Meaning that, even if the market price only changes by a few pips to favor your prediction, you get the same predefined payout.

Partial refunds in case of a loss

Some brokers offer to refund a percentage of the invested funds in case a trade ends out of the money. The refund percentage ranges from 0% to 15%. This means that if you are trading with a broker offering a partial refund, you will never make a total loss but a certain percentage of your investment will always be secured from trading risks.

Easy to understand and to trade

Compared to other forms of investment, binary options trading is very simple and hence it is very easy to grasp the trading basics. In options trading, a trader only has to trade the direction of price movements which means that he/she can still make a profit even if an asset’s market price assumes a downtrend. What makes it easier to trade is the fact that an asset’s price can only go down or up depending on the prevailing market conditions.

Fast turnover rates

In other trading ventures, for a trader to earn sizable profits, he/she must wait for a longer period of a month or two. However, in binary options trading, a trader can earn high returns in just a few seconds or minutes. The fast turnover rate of binary options trading allows traders to place multiple trades in one given day which in turn increases the potential returns.

If you have ever traded binary options, you must concur with me that this form of trading is the easiest trading venture which exists today. Binary options trading is characterized by high returns and flexible trading durations which makes trading easily customizable to fit any given trading style.