Binary options for day traders: A legitimate alternative?
Binary options are one of the fastest growing investment types. Over the last few years, more and more day traders started to prefer binary options over other forms of investments. Was that a smart move? Can binary options present a legitimate alternative to CTFs and conventional assets for day traders? In this article, we will shed light on these question.
In this article, you will learn:
- What are binary options?
- How can day traders profit from binary options?
- Which types of day traders should trade binary options?
With this knowledge, you will immediately be able to judge whether binary options are a legitimate alternative to your current type of investing.
What are binary options?
Binary options are a new way of trading financial markets. Binary options are revolutionary different from conventional assets for a number of reasons:
- Binary options use a predefined payout:
With binary options, you know what you can win before you invest. In every
situation, your broker will offer you payouts for every possible investment.
You choose which payouts you accepts, and which you pass up
- Binary options use a predefined expiry:
With binary options, you define when your binary option ends before you invest. You can choose the expiry from 30 seconds
to months and years, with hundreds of steps in between.
- Binary options allow you to invest in rising and falling prices: Binary options always allow you to choose whether you want to
invest in rising or in falling prices. Binary options also make investing in
falling prices easier than other assets. With conventional assets such as
stocks, it is difficult to invest in falling prices and the most advanced
investment types are reserved for banks
and professionals. Binary options make these types of investing available to
everyone.
- There are many different binary options types: Where conventional assets only offer one investing style – you buy an asset, or you do not – binary options offer many different types that all offer a different trading style. With high/low options, for example, you can predict whether the market will rise or fall over a given period of time, with one touch options you can predict whether the market will reach a predefined market price, with boundary options you can predict whether the market will leave a price corridor, and there are many more.
As you can see from this list, binary options are fundamentally different from other investment types. Consequently, they offer new possibilities and new chances no other asset type can offer. Let’s look at these possibilities and how day traders can use them to their advantage. Keep reading click here