Chapter Three: What Are the Advantages of Trading Binary Options In South Africa
High Return on Investment Potential
Due to the higher risk nature of binary options, typically the returns on your investment are also higher. Average returns are typically between 70-94% depending on the broker and the underlying asset. This compares to a FOREX trader who would typically realize returns of approximately 10%.To put it into context, say you risk $100 on a trade with a 90% pay-out and you get an ITM you will make a $90 profit anywhere from 5 seconds to a day depending on your time frame! Binary options offer greater reward in a shorter period of time to as compared regular investments like stocks which usually take long to give a return of say 20%.
Known Risk And Reward – Fixed Risk
You know right upfront exactly how much you are risking and exactly how much you will profit if you win the trade. There is no risk of leverage costing you more than the amount you risked on the trade.Only your chosen investment amount on any particular trade is at risk on that trade(in the example above, you will lose $100 if you get an OTM). You know exactly how much money you can lose and how much exactly you can make if you win.Binaries are unlike forex. It does not matter how high or low a price goes as long as it closes in the money for you. A single pip in the money is as good as 50 pips in the money. You still get the same payout on the trade either way.
Low entry point
Trading binary options in South Africa online can be done using minimal amounts of money. Some brokers like Deriv offer their trades starting from just 50 cents.This means that you can risk as much or as little as you can afford to.Initially, it’s wise to risk small amounts until you get to grips with it and only trade as much as you are willing or can afford to potentially lose.
Brokers have made trading binary options in South Africa as simple as possible to speed up the process from your initial deposit to getting started.There are only a few steps that are involved including choosing the financial asset you want to trade, select the amount you want to trade and the direction in which you think the price will go.Then select the expiry time and sit back and wait for your options to expire. A few clicks and you are done. If the outcome of the trade is in your favour then you typically stand to gain a high profit.
Wide Range of Internationally Traded Assets
Many financial assets can be traded all over the world daily. This means that no matter what your preferred asset is or where your knowledge in the financial markets lies you should have the ability to select it for your options.Many binary options brokers offer different sets of assets that they allow you to trade so check each one carefully. Some brokers offer an extensive range of commodities, stocks, indices and currency pairs up to around 90 of them meaning you have your pick of assets to trade.With a broker like Deriv, you can even trade binary options over the weekend using their revolutionary synthetic indices as the underlying assets.
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Trade on Any Market Condition
With binary options, you can make money whether the price of an asset goes up or down as long as you end up with an ITM.
Trade Anywhere, Any Time
Binary options brokers have made their online trading platforms as accessible as possible with many of them not just offering the conventional web-based trading via your desktop or laptop but also through your mobile. This means that you can trade on the move and check your options regularly and conveniently.Some brokers have like Iq Option simulated markets that you can trade over the weekend when the financial and stock markets are closed.
Unlike with other trading instruments, there are usually no fees or commissions attached to binary options. Brokers make their money from the percentage discrepancy between what they pay out on winning trades and what they collect from losing trades.
Easy To Trade – Not Complicated Like Forex
Binary option trading platforms have begun to cater to investors who have little experience trading this style of assets. As such, websites have become incredibly user-friendly with features such as demo accounts, informative videos and live chat features to answer any questions you may have while trading.You also only have to make a prediction correct out of two possible outcomes. You do not have to worry about stop losses, leverage and magnitude of price movement when binary trading.Let’s explore the other differences and similarities between forex and binary options