There are a few reasons why new and old traders turn to masse binary options. In the trading world, binaries are a relatively recent development. In 2008 only SEC approved its predecessors, digital or all or nothing options. They have become the online trading community and in only a few short years they have changed the face of trading. Until binary options were available to the Internet, online trading was a much more complex business. The largest share of online traders currently exists in online forex trading. But Forex trading has some disadvantages to the very simplicity of binary options.
Firstly, when dealing with Forex, you have only access to monetary pairs, it may not be a big obstacle at first for most traders, but it limites only the options available to you to currencies. Most brokers in the Digital Option offer stocks, goods, indices and currency pairs trading. The trading of these additional assets gives binary traders advantages. Because they can rely on correlations of assets to diversify their businesses. But this is the least that binary traders benefit from Forex. The way binary options work makes them for several reasons a better alternative to Forex online. First of all, binary options have preset risk and premium levels, so traders know how much they can gain or lose before trading. This means that binary traders have far more control than Forex traders over their bankrolls. Binary trades have only two potential outcomes and only two traders have to make choices. Either the stake will make a definite profit, or most of the stake will be lost (between 60 and 80 per cent). And all you have to decide is whether your asset will rise or decrease. With Forex you not only do not have this luxury, you also buy your currency pair at a slightly higher price than the market price, so your trade has to grow higher to succeed, you have to sell it at a lower price than it actually is worth, which means both at the exit and in the enter.
However, binary options not only provide an appealing alternative to today’s status quo, they are made much more efficient by their simplicity. Binary option is particularly useful because the length of business is as flexible as possible. Binary options traders can select only 60 seconds to the end of the year from a number of trade expirations. In shorter term positions, this flexibility is much more useful. The ability to define precisely how long a trade will last is invaluable since it enables the enterprise to enter at the right time, profits from momentary price fluctuations and is not tied more than necessary to the fortunes of a certain asset. Short expirations and predetermined risk structures also make money when an asset is different. That eliminates the need to have a long trading session, which means that you can do more than you can with a full day of Forex trading in an hour of intensive binary trade.
Finally, the only real asset that Forex has is quickly overturned with binary options that gain wider acceptance and regulate different brokering companies. The better idea prevails in trade, as in every aspect of life. For all sorts of traders, beginners and experienced, binaries make more meaning. Forex would do good to remove a leaf from the playbook of binary options. Simplification is the most important thing. See our Binary Options Trading guide to educate the new brokers for further information about binary options trading and other useful tips.