4 Main Advantages Of Trading Binary Options

The World Bank predicted that India will overtake China next year (2010) as the world’s fastest growing economy! Recently the World Bank initiated a $4.2 billion funding program for infrastructure in India.

It’s not difficult to get signed up to start investing in binary options trading. All you have to do is find an online broker that provides a binary option trade.

You can find these binary options online by financial brokerages who offer them by: A.) the cost of stock shares by big companies like Pepsi; B.) commodities such as gold and oil; C.) the current rate of exchange from the US dollar to Euro, and; D.) the worth of stock markets such as NASDAQ in the United States.

Making the same profit in the same period of time would have been much more difficult with normal trading. If you buy a CFD for Gold you don’t know how much you will win by the end of the day, even if the market will raise, because it depends on the price difference. If it is only a small raise the profit will be very small too. Another big disadvantage of normal trading is the risk of losing more than planned, if you don’t use stop losses. If you use stop losses to avoid dangerous moves, you can end up hitting your stop loss before the market recovers and moves in the desired direction. This way you can end up losing money even when you predicted correctly the direction where the price will go the end of the day.

You may need to take some additional training or course that will fill out your training in how to make intelligent trades in the currency market. One of the best features about FOREX is it doesn’t cost thousands of dollars like most as it does in many types of trading.

A $200, 75% payout 12:00pm expiration binary call option on Google with strike price $307.50/share will pay $350.00 if Google goes up as of 12:00pm, $30.00 if Google goes down. It does not matter if the underlying share price goes up 10 cents or 10 dollars, the payout is the same. Likewise if share price falls one dollar or one cent, the payout will be $30.00.

Considering all the above advantages, it is no wonder why more and more amateur and professional traders alike start trading binary options and make a steady income out of it.