What Type of Binary Options Should I Trade?
- With short and long term options gaining in popularity, we offer a condensed guide through the different option types according to their duration and suitability for the different types of traders.
Classic binary options, the simple up/down trades, are renowned among traders for their short lifespan. Profits can reach 85% for a thirty minute trade, far more than what can be made when trading calm markets through the popular Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term platforms. But the industry has been seeing an increased effort to offer both extremely short options, as well as a Marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term push to promote long-term ones.
Two different audiences are being targeted through this. The short-term ones are aimed at traders who either have a purely recreational view of the activity, or people with less time, but who still want to get in on the action. The long-term options are designed to attract a more "investor" like crowd, both as individuals and institutions.
For the more entertainment minded, many binary options brokers have begun to develop options with expiry of one, two and five minutes. Some even go to rather extremely short lengths -15 seconds and 30 seconds. The argument for trading them is that they are essentially the market sped up, but questions have been raised if it's truly trading when the outcome is decided by ticks on the chart. Some opponents say that even day trading is nothing more than noise within a trend.
The most typical options remain the ones that are similar in length to most forex trades - between thirty minutes or an hour to expiries at the end of the day. This is because traders feel that they can most easily identify low and high points and resistance levels for these durations. Coupled with more visible trends, especially after important economic announcements, they get the most action. If a trader has some background in forex and relies on technical analysis or event trading, then these are the most suitable binaries for him.
Long-term binary options usually cover weekly, monthly and quarterly ones. This is the more investment-like choice, only with quite a high payout for such a duration. Trends are thought to be easier to spot over such periods, but the downside to these options is the risk of losing it all if you're wrong and that the money is locked for the full duration of the option. Still, if you want to trade binary options, then do it with the lowest amount of risk, and after doing some homework and analysis, these are for you.
Regardless of what option you prefer, they are undoubtedly the easiest way to trade the markets and can appeal to a far wider audience than forex.
Classic binary options, the simple up/down trades, are renowned among traders for their short lifespan. Profits can reach 85% for a thirty minute trade, far more than what can be made when trading calm markets through the popular Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term platforms. But the industry has been seeing an increased effort to offer both extremely short options, as well as a Marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term push to promote long-term ones.
Two different audiences are being targeted through this. The short-term ones are aimed at traders who either have a purely recreational view of the activity, or people with less time, but who still want to get in on the action. The long-term options are designed to attract a more "investor" like crowd, both as individuals and institutions.
For the more entertainment minded, many binary options brokers have begun to develop options with expiry of one, two and five minutes. Some even go to rather extremely short lengths -15 seconds and 30 seconds. The argument for trading them is that they are essentially the market sped up, but questions have been raised if it's truly trading when the outcome is decided by ticks on the chart. Some opponents say that even day trading is nothing more than noise within a trend.
The most typical options remain the ones that are similar in length to most forex trades - between thirty minutes or an hour to expiries at the end of the day. This is because traders feel that they can most easily identify low and high points and resistance levels for these durations. Coupled with more visible trends, especially after important economic announcements, they get the most action. If a trader has some background in forex and relies on technical analysis or event trading, then these are the most suitable binaries for him.
Long-term binary options usually cover weekly, monthly and quarterly ones. This is the more investment-like choice, only with quite a high payout for such a duration. Trends are thought to be easier to spot over such periods, but the downside to these options is the risk of losing it all if you're wrong and that the money is locked for the full duration of the option. Still, if you want to trade binary options, then do it with the lowest amount of risk, and after doing some homework and analysis, these are for you.
Regardless of what option you prefer, they are undoubtedly the easiest way to trade the markets and can appeal to a far wider audience than forex.