The binary options and Forex marketplaces are two of the most lucrative places to put your money, especially if you are focused on short term profits. Depending upon what your expertise is, either can be great for increasing wealth, but they do come at it from different directions. Binaries, for example, look at small amounts risked and try to get the most out of them. Trading currencies in the Forex market have more risk, but can have huge gains off of small quick changes thanks to that risk. Let’s look at both quick and highlight the benefits of each. You’ll be surprised.
Binary Options Trading
If you are starting small, are new to trading, or simply want to declutter your life, binary options are the best place to start. Binaries offer you a wide range of possibilities since you can trade pretty much anything, ranging from currency pairs, stocks and major indices, and a selection of the world’s major commodities. Unlike any other type of trading, you can access all of these different type of assets from the same brokerage and you never need to use a different platform. This makes it a lot simpler for those with varied interests to do what they need to do with their trading and avoid a lot of hassle by moving money around to different accounts and continuously needing to switch screens. Everything is managed in one spot. This makes things a lot easier when trading.
Binary trading is great for beginners and those with smaller trading accounts. For as little as $500, you can be a successful binary trader and never need to add more to your account, provided you take the necessary steps to protect yourself and learn as much as possible. That’s the beauty of binaries. You can make a big rate of return on every trade if you are correct in your prediction. A lot of sites will allow you to execute trades for as little as $10 each, which is a perfect amount for an account starting with $500 (2 percent). With a $10 trade, you can earn about $8 per correct trade, and you will lose the whole $10 when you’re wrong. Even if you are wrong 1 in 3 times, you are still earning $6 every three trades. If those trades are each last 5 minutes, that’s $6 every 15 minutes, or $24 per hour. If you can do this 5 hours per day, you’re still making more than $100 every day. Not bad for only risking $10 at a time. Imagine if you were binary trading 60 second options. You can make a lot of money pretty quick.
Binaries alleviate a lot of long term risk, even if they don’t seem like they do at a micro level. After all, the nature of binary options is that they are all or nothing. You’re either making a high rate of return, or losing all you’ve risked. But you’re not going to be wrong with every trade; hopefully, if you are a decent trader, you will be right far more often than you are wrong. Binaries, then, take away a lot of the uncertainty that you would find pretty much everywhere else in the world of financial trading.
Trading currencies was once something privileged for just the big banks and Wall Street hedge funds. That’s not the case anymore, thanks in a large part to the internet. Now, pretty much anyone with a few extra bucks to spare can create an account and start trading. And even starting small can lead to big results thanks to leverage. This allows you to multiply your buying power. Instead of buying $100 worth of the euro, for example, you can use leverage to buy up to 400 times the amount you had. So instead of $100, you now have $40,000. All the money you borrow needs to be returned, but the profit is now yours to keep. This allows you to make the most out of a tiny change in price. Instead of eeking out a few pennies here and there, you can now make substantial profits, even when the markets are not moving quickly.
There’s a downside to leverage, of course. You are responsible for your losses. If you lose $40,000, you need to pay the broker back. Brokers will put an end to your trade automatically if you lose too much of their money, so be aware of this before you begin.
Which is Better?
Both types of trading are great for making a profit regardless of prevailing economic conditions. Both have benefits and negative consequences, and the best one for you is largely up to your individual circumstances. They are both worth examining, but you will need to determine which one is best for your own personal situation.