Binary options are a brilliantly straightforward way to trade on the financial markets, with a general lower risk than other forms such as spread betting and the bonus of completely tax free winnings. Binary options have rocketed in popularity in recent years, partly to do with the lesser risk involved as well as the fact that a trader can know their maximum gains or losses before even placing a bet.
When compared to other forms of trading, binary betting is very simple and straightforward; there is only ever two outcomes to a bet…that an event either happens or doesn’t happen. That is all the outcomes of binary betting can ever be as it is a fixed odds method of trading. Because of this, binary options are often referred to as fixed-return options due to both the use of fixed odds and the fact that a return or loss is known and remains fixed unlike forms such as spread betting.
Say a trader places a bet on a market moving up by the end of a set period; regardless of how much it goes up by, the bet would be won so long as the market is up by the end of the period. If the market goes down, the bet is lost, however this is only ever by a fixed amount which is known before the bet is placed.
All traders should be utilising binary options as part of their portfolio for a simple reason; the risk and reward is always known. However much a market moves, the trader will only lose the fixed amount. To many, this is the single reason why binary betting is so appealing. Binary options are a great addition to a portfolio in order to be able to place low risk bets with a fixed return, however much the market moves by.
If you are knowledgeable about the financial markets and take your time to understand how binary betting works, there’s no reason why it can’t bring you repeated wins and the associated tax free profit which comes with it. It’s very straightforward to convert fixed odds to binary to assist you with your trades and you can very quickly and easily get to grips with the system and start bringing in the wins.