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<br>Advantages and disadvantages of Binary Options.<br>Binary options are becoming more and more popular among traders, especially among the “novice” traders, because they are a financial instrument that is very easy to understand and use . But what are the advantages and disadvantages of binary options?<br>Let’s find out together, step by step, starting with the advantages of the Binary Options to end with the Disadvantages of the Binary Options.<br>Advantages of binary options.<br>Simplicity: this is the main strength of the binary options, because no other financial instrument is so easy to understand and use; in fact with the Binary Options you have only to make a prediction on the movements of the Prices, and you will get the Payout if your prediction was correct or you will lose the money invested if your prediction was wrong.<br>Possible High Earnings: the binary options are a highly speculative financial instrument, in fact the average Payout in case of correct prediction varies from a minimum of 70% up and over the 500% of the investment made. This means that by investing 100 euro on a Binary Option, you could earn a minimum of 170 euro or even 500 euro and more (The Payout depends on different factors).<br>Short-term: Binary options are a financial instrument quite “fast”, in fact the Expiry Time for the Binary Options it can be of just 1 minute, up to a maximum of a few days or a week.<br>Freedom of choice: there are a lot of assets on which you can trade, from Stocks to Indices, commodities and currency pairs, for a total of some hundreds of Assets available(the total number of available Assets vary from Broker to Broker, of course).<br>“Calculated” Risk: The possible Payout and loss from a Binary Options is already fixed from the beginning, so you will never lose more money than the amount that you have invested in a Binary Option, and you already know your possible earning from a Binary Option.<br>Disadvantages of binary options.<br>Fixed Earning: If is positive to know how much you will earn before you invest your money on a Binary Option, in case of “strong” movements in Prices is not so positive. Because when there is a strong movement, the Price of the Asset can greatly increase but with the Binary Options the earning is already fixed: it means that in case that the Price of a share of a Company rises from $80 to $90, you will earn the same amount of money in case that the Prices was raised from $80 to $81.<br>Short-term: the downside is the fact that the Expiry time for the Binary Options is usually very short and if you want to operate for the long-term, that is no possible in most cases. Furthermore, the Prices in the short-term are more subjected to the volatility.<br>Need to use external programs for charts: the vast majority of online Brokers, unfortunately do not provide “useful” charts for the Traders, to help them to predict the price trends. Usually (apart a few rare cases) the Charts available on the Trading Platform of a Broker, are similar to the Line Chart and they are too “simple” to help the Traders; therefore, you are forced to use other charts from another website or Platform, to be able to study the trends in Prices.<br>The Trading Online Guide, strategy to earn with Binary option and Forex Trading online.<br>
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