Binary options trading platforms are the new addition to the exciting world of online forex trading. Click here to read about what binary options trading is all about. The binary options trading brings with it the simplicity of trading the forex markets and the chance to make money quickly. It is perhaps this lure that makes binary options trading so massively popular amongst both professional traders as well as beginners with no previous forex trading experience. There are a lot of binary options trading platforms available these days, thus giving rise for potential binary options traders to pick and choose the best binary options trading platforms that fit their needs.
Binary options trading is often referred to as digital options or fixed return options and have become very popular in recent years. The advantages of binary options trading is clear – the returns and risks are known in advance, binary options trading, unlike forex is more simpler.
By avoiding the complexities such as leverage, execution types, binary options trading makes for a perfect fit for investors looking to diversify their trading portfolios as well as first time investors who were hitherto put off with forex trading. There’s always a bit of excitement for anyone trading on any of the binary options trading platforms.
Binary options trading platforms – Profit!
Binary options trading makes for a unique opportunity for investors looking to profit on the short term. Most of the binary options come with an expiry time of one hour or perhaps three hours at the most. This makes for a great opportunity for day traders and forex scalpers who were until now only had the option to trade via currencies with their respective forex brokers. One of the attractive features that comes with most binary options trading platforms is that they offer high returns in a short amount of time. This means that investors have the potential to make up to 85% of their profits by trading binary options. However, as with anything that offers fast returns, the risks associated with it are just the same.
The competition in binary options trading platforms has given rise to basically two kinds of binary options brokers. Those that offer returns on losing trades and binary options brokers that offer no returns at all on your losing trade. The choice on which type of a binary options broker you wish to trade with is purely a personal issue. Each of the binary options trading platforms bring with them, their own set of trading advantages and disadvantages. Further more, the choice of assets you wish to trade also differ from one binary options trading platform to another. Put all these factors and you will notice that each of the binary options trading platforms is unique in itself.
Binary Options Trading Example
An investor purchases a Microsoft (MSFT) binary option for $100 at a strike price of $25.69, with the belief that at the end of the day Microsoft’s shares will be higher than they currently stand (the strike price). If the trader’s speculation turns out right, then the binary options trading platform would pay the 71% return on his investment, a total of $171. Thus, it is possible to make high returns with binary options trading.
On the other hand, if at the end of the contract, Microsoft’s shares fall below $25.69 then the trader gains 15% of the principle investment which is $15.
According the above example, this means that when a binary option contract is purchased, the investor knows that they will receive either $71 if they win or $15 if they lose for an investment of $100. These values will obviously be much greater, larger the investment.
Binary options trading platforms – What’s unique?
There are a number of features unique to binary options trading platforms. The short term multiple expiry times means investors can make an instant profit on their binary options and are more flexible in their binary options investments. An investor in a binary option must hold onto his option until the expiry date. He must therefore take more care when purchasing his binary options as he cannot sell them once they are purchased.
Trading binary options with any of the binary options trading platforms is a novel and interesting method of investing in the financial markets. Trade binary options now, if you want to take advantage of the straightforward and flexible way of trading on our binary options trading platform.
List of binary options trading platforms
While the choices are many, when it comes to choosing the right binary options trading platforms, there are many factors to consider. Read the binary options trading platforms review at Forexpromos.com bringing you an unbiased view on the best and the most reputable binary options brokers.