{"id":48586,"date":"2021-07-02T14:46:10","date_gmt":"2021-07-02T12:46:10","guid":{"rendered":"https:\/\/www.binaryoptions.com\/?p=48586"},"modified":"2023-05-23T16:34:53","modified_gmt":"2023-05-23T14:34:53","slug":"why-you-should-trade-binary-options","status":"publish","type":"post","link":"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/","title":{"rendered":"10 reasons why you should trade Binary Options"},"content":{"rendered":"\n<p><a href=\"https:\/\/www.binaryoptions.com\/\">Binary options<\/a>&nbsp;were only reserved for the big banks from the early 70s up to 2008, when they used to be traded as Over-the-Counter (<a href=\"https:\/\/www.binaryoptions.com\/guide\/otc-trading\/\" data-type=\"post\" data-id=\"49805\">Binary Options OTC<\/a>) market instruments. With the collapse of the stock markets in 2008 as a result of the global financial crisis, there arose a need for alternative investments in which the average Joe on the street without much market knowledge could participate in without the excessive risk profile inherent in other markets. This led to the deregulation of the market in 2008 to allow retail trader participation in the market.<\/p>\n\n\n\n<p>What are the 10 reasons why you should be trading binary options at this time? These are listed below.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1030\" height=\"547\" src=\"https:\/\/www.binaryoptions.com\/wp-content\/uploads\/buildings-2174578_1280-1030x547.jpg\" alt=\"Buildings\" class=\"wp-image-65072\" srcset=\"https:\/\/www.binaryoptions.com\/wp-content\/uploads\/buildings-2174578_1280-1030x547.jpg 1030w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/buildings-2174578_1280-300x159.jpg 300w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/buildings-2174578_1280-80x43.jpg 80w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/buildings-2174578_1280-768x408.jpg 768w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/buildings-2174578_1280-18x10.jpg 18w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/buildings-2174578_1280-800x425.jpg 800w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/buildings-2174578_1280.jpg 1280w\" sizes=\"(max-width: 1030px) 100vw, 1030px\" \/><\/figure><\/div>\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >What you will read in this Post<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#1_Reduced_risk_profile\" title=\"1. Reduced risk profile\">1. Reduced risk profile<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#2_Reduced_entry_costs\" title=\"2. Reduced entry costs\">2. Reduced entry costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#3_Advance_knowledge_of_profitloss_ratio\" title=\"3. Advance knowledge of profit\/loss ratio\">3. Advance knowledge of profit\/loss ratio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#4_Limited_loss_potential_per_trade\" title=\"4.&nbsp;Limited loss potential per trade\">4.&nbsp;Limited loss potential per trade<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#5_Flexibility\" title=\"5. Flexibility\">5. Flexibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#6_Increased_profitability\" title=\"6. Increased profitability\">6. Increased profitability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#7_Reduced_cost_of_trading\" title=\"7. Reduced cost of trading\">7. Reduced cost of trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#8_Simplified_trade_entry_process\" title=\"8. Simplified trade entry process\">8. Simplified trade entry process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#9_Enhanced_trader_education\" title=\"9. Enhanced trader education\">9. Enhanced trader education<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.binaryoptions.com\/guide\/why-you-should-trade-binary-options\/#10_Easy-to-Use_platforms\" title=\"10. Easy-to-Use platforms\">10. Easy-to-Use platforms<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Reduced_risk_profile\"><\/span>1. Reduced risk profile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When compared to other markets like the spot forex market, binary options have a reduced risk profile. In the spot forex market and the stock market,<strong> traders have to factor in parameters such as leverage, <a href=\"https:\/\/www.binaryoptions.com\/glossary\/margin\/\" data-type=\"post\" data-id=\"63758\">margin<\/a> and <a href=\"https:\/\/www.binaryoptions.com\/glossary\/slippage\/\" data-type=\"post\" data-id=\"69751\">slippage<\/a> as these can affect trading outcomes<\/strong>. These parameters have no bearings on trades performed in the binary options market, which means that all a trader has to contend with is the analysis of the trade. He does not need to worry about what price his trade entry is filled at, or whether there is enough margin in the account to support the trade.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Reduced_entry_costs\"><\/span>2. Reduced entry costs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The cost of starting a binary options trading account is lower than what obtains in other financial markets. A trader can open a trading account with as low as $100 on <a href=\"https:\/\/www.binaryoptions.com\/broker\/\">some binary broker platforms<\/a>. <strong>In the US, it costs as high as $25,000 to open a spot forex account <\/strong>and even more for an options trading account because of the steep margin requirements, effectively shutting out many retail brokers. But the reduced entry costs in the binary options market allow broader participation in the market.<\/p>\n\n\n\n<div class=\"wp-block-trading-select-broker broker-basic-empfehlung\"><div class=\"broker-basic-empfehlung\"><div><span class=\"blue-box\">Best binary broker:<\/span><div class=\"item\"><div class=\"meta-left-container\"><div><img decoding=\"async\" src=\"https:\/\/www.binaryoptions.com\/wp-content\/uploads\/Pocket-Option-logo-3.png\" \/><\/div><div class=\"button-container desktop\"><a href=\"https:\/\/www.binaryoptions.com\/gobasicaccount\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">\u203a Open your free account<\/a><\/div><div class=\"disclaimer-container desktop\">(Risk warning: Trading is risky)<\/div><\/div><div class=\"meta-right-container\"><p class=\"mobile title\">Pocket Option - Trade with high profits<\/p><div class=\"rating\"><span class=\"star\">1<\/span><span class=\"star\">2<\/span><span class=\"star\">3<\/span><span class=\"star\">4<\/span><span class=\"star\">5<\/span><span class=\"rate-result\">5.0<\/span><span class=\"rate-divider\">\/<\/span><span class=\"rate-max\">5<\/span><\/div><p class=\"desktop title\">Pocket Option - Trade with high profits<\/p><div class=\"pros\"><ul>\n<li>Accepts international clients<\/li>\n<li>High payouts 95%+<\/li>\n<li>Professional platform<\/li>\n<li>Fast deposits<\/li>\n<li>Social Trading<\/li>\n<li>Free bonuses<\/li>\n<\/ul>\n<\/div><\/div><div class=\"meta-left-container mobile\"><div class=\"button-container\"><a href=\"https:\/\/www.binaryoptions.com\/gobasicaccount\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">\u203a Open your free account<\/a><\/div><div class=\"disclaimer-container\">(Risk warning: Trading is risky)<\/div><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Advance_knowledge_of_profitloss_ratio\"><\/span>3. Advance knowledge of profit\/loss ratio<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the binary options market, the display of what profits will be made if the trade is successful before the trader executes the trade is an advantage to the trader. <strong>This helps traders know in advance whether a trade is worth taking or not and prevents traders from taking unnecessary risks<\/strong>. Such facilities do not exist in other markets and this makes it easier for retail traders to subject themselves to unnecessary risks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Limited_loss_potential_per_trade\"><\/span>4.&nbsp;Limited loss potential per trade<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the binary options market, any losses sustained are restricted to the amount that was invested into the trade. <strong>This reduces the loss potential per trade<\/strong>. This is unlike other markets where it is possible to lose much more than what was invested into the trade, especially when there is a highly volatile market condition that causes slippages to blow through stop-loss settings.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1030\" height=\"728\" src=\"https:\/\/www.binaryoptions.com\/wp-content\/uploads\/statistics-810024_1280-1030x728.jpg\" alt=\"Statistics\" class=\"wp-image-65074\" srcset=\"https:\/\/www.binaryoptions.com\/wp-content\/uploads\/statistics-810024_1280-1030x728.jpg 1030w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/statistics-810024_1280-300x212.jpg 300w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/statistics-810024_1280-80x57.jpg 80w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/statistics-810024_1280-768x543.jpg 768w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/statistics-810024_1280-18x12.jpg 18w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/statistics-810024_1280-800x566.jpg 800w, https:\/\/www.binaryoptions.com\/wp-content\/uploads\/statistics-810024_1280.jpg 1280w\" sizes=\"(max-width: 1030px) 100vw, 1030px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Flexibility\"><\/span>5. Flexibility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The fact that there are&nbsp;several types of trades&nbsp;that can be used to trade assets in the binary options market means that traders have more flexibility and more scenarios to work with.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Increased_profitability\"><\/span>6. Increased profitability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Due to the short nature of the trade expiries allowable in the binary options market, <strong>it is possible for a trader with a good performance to record more profits over time <\/strong>than would be possible in other conventional markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Reduced_cost_of_trading\"><\/span>7. Reduced cost of trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The cost of trading binary options is less than in other markets. A trader who trades stocks or options would pay much more in commissions and spreads than a binary options trader.<\/p>\n\n\n\n<div class=\"wp-block-binary-cta-blocks binary-cta direction-center\"><a href=\"https:\/\/www.binaryoptions.com\/gopocketoption\" rel=\"noopener nofollow\" class=\"alert-button\" target=\"_blank\">\u27a8 Sign up with the best binary broker Pocket Option now!<\/a><p>(Risk warning: Your capital can be at risk)<\/p><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Simplified_trade_entry_process\"><\/span>8. Simplified trade entry process<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The trade entry process in the <a href=\"https:\/\/www.binaryoptions.com\/guide\/markets\/\">binary options market<\/a> is much more simplified than what is obtainable in other markets. To open a trade in the spot forex market for instance, <strong>the trader has to calculate the trade volume, set stop loss and profit targets and also decide on what kind of order to use<\/strong>. This leaves beginners especially prone to making mistakes. In the binary options market, all a trader needs to do is to enter the investment amount, choose the expiry and execute the trade.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_Enhanced_trader_education\"><\/span>9. Enhanced trader education<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.binaryoptions.com\/broker\/\" data-type=\"page\" data-id=\"49176\">Many&nbsp;binary options brokers<\/a>&nbsp;offer an extensive educational suite that features <a href=\"https:\/\/www.binaryoptions.com\/tools\/books\/\" data-type=\"post\" data-id=\"48362\">binary ebooks, video training<\/a>, webinars, and other resource materials that a trader can use to increase knowledge about the market. It is relatively rare to see such stuff in other markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Easy-to-Use_platforms\"><\/span>10. Easy-to-Use platforms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The web-based trading platforms obtainable in the binary options market make it easier to navigate and use for new traders. Many mistakes in the trade order process in forex and other markets can be attributed to the complicated nature of the <a href=\"https:\/\/www.binaryoptions.com\/broker\/\" data-type=\"post\" data-id=\"47855\">binary trading platforms<\/a>, many of which have interfaces that confuse new traders. This is not a problem in the binary options market.<\/p>\n\n\n\n<p>With so many reasons that support binary options trading, traders who are having a tough ride in other markets should make the switch to the binary options market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Binary options&nbsp;were only reserved for the big banks from the early 70s up to 2008, when they used to be traded as Over-the-Counter (Binary Options OTC) market instruments. With the collapse of the stock markets in 2008 as a result of the global financial crisis, there arose a need for alternative investments in which the [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":65072,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[125],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/posts\/48586"}],"collection":[{"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/comments?post=48586"}],"version-history":[{"count":10,"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/posts\/48586\/revisions"}],"predecessor-version":[{"id":100923,"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/posts\/48586\/revisions\/100923"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/media\/65072"}],"wp:attachment":[{"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/media?parent=48586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/categories?post=48586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.binaryoptions.com\/wp-json\/wp\/v2\/tags?post=48586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}