Why Binary Options are Better than Day Trading?

Perhaps the most appealing aspect of trading binary options is the fact that they offer very quick returns. While in the traditional trading world you often must wait hours or days before a trade matures to the point where you can take away a small profit, binary options give you almost immediate returns. With a single trade, you can earn as much as 60 to 80 percent return on your initial investment. If you are trading actively, it is not unheard of to get returns of up to 300 percent or more in a single hour. No other form of trading can boast consistent returns like this.

This is beneficial to traders for several reasons. You are dealing with a high rate of return, which is a great thing for any trader, but you are also keeping the liquidity value of your cash. In other words, because you see very quick results when trading binary options, your money has a higher value to you. Liquidity of your trading capital is important because this allows you to always have cash on hand that you can use to have even more trades. The more trades you make, the better your rate of return will be.

Of course, you need a sound trading strategy to see results like this. But still, for the experienced trader with a good trading strategy, you can put your money to use far more often in binary options than you can with any other type of trading, including many day trading techniques. There are binary options out there that expire every fifteen minutes or even shorter timeframes. By taking advantage of these types of trades with a sound strategy, you can easily see returns of a magnitude that you cannot find anywhere else.

Day trading is a risky proposition because to see high rates of return, you must trade with large amounts of money. Binary options directly address this problem. Most trades can be executed with small amounts of cash, allowing you to still see the same high rate of return and not lock up as much money. Because there are no spreads or brokerage fees or commissions, binary options give you an opportunity that you cannot find with traditional day trading. By eliminating these costs, you are freeing up more capital to use directly for trading. In addition to this, you don’t have to worry about risking and potentially losing huge amounts of money. You will always know just how much you need to risk in order to see the profit levels that you wish because binary options state prior to the trade what your return rate will be should the trades you make be successful. This makes money management easier for binary options much easier than with day trading.

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