What The Market Muses Like About Binary Options Trading

Binary Options Trading - The Muses View

Every kind of financial markets trading has its advantages and disadvantages, with no one asset class being the right choice in all situations. However, what we can look for is those that give us the widest variety of trading choices under the widest variety of market conditions. The most flexible instruments in other words. The financial instruments which will allow us to profit no matter what kind of market conditions currently exist. Down markets don't bother us! In fact, sometimes we prefer them. So what do the Muses feel is the best instrument for meeting the above outlined criteria? We believe that would be binary options contracts.

Binary Options Advantages

There are many advantages of binary options trading that simply do not exist with any other type of financial instrument. That is not to say that there are no disadvantages of binary options trading (which we will touch on later), but they are far outweighed by the advantages we think. Here we will introduce just a few of the most important of those advantages.

• Precisely Controlled Risk

Binary options contracts allow traders to control risk in a way that is not possible with any other asset class. This is because you have complete control over those risks. Both the investment risk and the potential returns are known prior to ever entering the trade. This means that you can always calculate your risk/reward  ratio, and adjust it as needed, with ease. No other asset class can come ti this level of control.

• High Returns & Fast-Paced Trading

Binary options trading not only offers you very high return rates on your investment amounts, but also does so in a fast-paced trading environment which allows you to "turn over" your trades many times throughout a single day. This makes for very large profit opportunities each and every day. Just remember to control your risk!

• Accessible & User-Friendly Trading Platforms

One of the biggest initial draws for binary options trading is its relative simplicity, and the ease-of-use of the trading platforms usually offered by brokers (not all of them meet this criteria, just most). The simplicity of binary options trading has allowed it to gain popularity among a new class of traders who have no prior experience in financial markets speculation. Unlike most other forms of trading, binary options trading can be learned in a very short amount of time, and with no prior trading experience of any kind even necessary (but it can certainly helpful). A day to learn and a lifetime to master kind of thing (although you can be consistently profitable in much less than a lifetime, thankfully haha).

• Very Low Initial Investment Required

With most forms of investing, from general stock market investing, to forex and "vanilla" options trading, the minimum investment for opening an account can frequently run to $5,000-$10,000 just to get started. Many of us cannot afford to risk that much money in something we are not professionals at. Prior to binary options trading, we were just out of luck and "priced out" of the market. Binary options brokers like Banc de Binary, on the other hand, have very low minimum requirements of $100-$200 typically, and as high as $500 in some cases. A far cry from $5,000+ just to get a foot in the door.

• Market Neutral Instruments - Profit In ANY Market Environment

One of the very best things about binary options is that they are completely market neutral trading instruments. This simply means that regardless of overall market conditions, whether they are rising, falling, or flat, you can easily profit using binary options. How? Well, with binary options trading it is just as easy to purchase a put contract (falling price bet) as it is a call contract (rising prices bet). There are no restrictions or extra costs associated with a put position. Unlike traditional options. Market direct just does not matter with these unique instruments.

Binary Options Trading Overview Conclusions

These are just a few of the many advantages of binary options trading. There are many more which you will quickly discover for yourself should you start trading in these unique and exciting financial instruments. There are however, at least a couple of potential disadvantage which we earlier promised to mention.

Binary Options Disadvantages

• Poor Charting Technology Provided By Brokers

This can be easily overcome though by simply using off-site charting software. We recommend TD Ameritrade's ThinkOrSwim downloadable trading platform software.

• US Traders Often Restricted

Due to some regulatory conflicts and the high costs associated with compliance, many of the most popular global binary options brokers do not currently accept US traders. And even some who do accept US trades do not allow them full access to all platform features and underlying assets. There are, however, still several great brokers who accept US trades, and give them complete, unrestricted access to all features and assets.