Advantages of Options
There are several key benefits of options trading, when comparing to other forms of financial trading. Low cost on investments with higher than average returns, limited risk of loss and simplicity of trading are just a few of the advantages of options worth mentioning. And with the advance of modern technology trading stocks, currencies and may other assets from home are as attainable as ever.
Let us firstly compare advantages and disadvantages of options with widely marketed Forex market. With Forex your returns and losses are not fixed but variate according to the price fluctuations. The stronger the trend, the larger the profit or your loss is. With options your trade does not necessarily need to move on a large scale, just a pip in the right directions will bring you an average of up to 90% return on your investment. And with some firms offering stakes as low as $1, the investments do not need to be large. But if you prefer higher levels of trading, your transactions can be in thousands of dollars. And if you sustain an unexpected setback, you are usually offered up to 15% return on losses. I find it a wonderful option and one of benefits of options trading, would you agree?
Minimal financial risks due to volatility of market conditions on usual on-line financial markets can wipe out your whole deposit in a single wrong trade, as leverage of 200:1 is a usual thing. One of other advantages of options trading is that you risk just the amount you trade and the returns are predetermined before its opening. Leverages, variable margins of profit, price re-quotes and other things can damage your wallet and your psychological perception of yourself as a good trader. No more battles like that in trading options. All is simple and straightforward and you can see clearly that it is one of options advantages. For instance, for an average investment of $100 in Apple with Up/Down on BO your return will be 85%, and refund on losses 10% within just a few minutes and a single click of a button. That amazingly easy and fun to watch your account double and triple in a very short time.
And you can trade on any market movement without limitations, meaning the price of an asset should not necessarily rise or fall, it can be trading sideways as well, and you can still make cash. Multiple instruments such as Up/Down, Touch, Range and others allow you to profit in any instance. You simply open your web-based trading account (indeed, no download required) and place a trade. This can be done via your smart-phone on the go as well. So digital options are now not limited to Wall Street or even your home. If you know the good opportunity is coming, you can trade wherever you are, which is one more point of options advantages.
To sum up advantages and disadvantages of options, it is very easy if you are acquainted with financial markets or not. The tools are all there for you to utilize and make profit. Starting investments are low and bonuses offered by brokerage companies can double your money from the start, so you face less risks when making your first trades. Rewards for trades are set in stone, as well as losses, you do not need to worry about any additional features you may need to know to safeguard yourself, like in many other financial markets. And accessibility is there to allow you to trade whenever and wherever. With these all advantages of options trading one can understand that digital options is a great choice to make a living on.