Trading Volatile Assets
Let’s discuss Binary Options as one of the best ways to capture breakouts of volatility within the financial markets while maintaining minimal risks to your trading portfolio. Binary Options are also known as Spot Options, Digital Options or Fixed Rate Options.
In general, an Exotic Option has barrier levels. This means the option will either be profitable or not, based on if the barriers are breached or not. The ROI, or return on investment, for these types of trades is predetermined as the option is selected, as is the premium or price of the option when the trade is purchased.
In a volatile market, having a pre-set entry price along with a pre-set closing value gives major support to a day trader as assets are continuously shifting. Digital Options operate with definite barriers which the option needs to reach. Depending on what the market trends are doing a Call Option should be taken, in the event the asset is rising in a volatile market and vice versa. A Put Option should be taken if the underlying asset (stock, indices, commodity, Forex) is dropping.
Attributes Binary Option Brokers provide to the day trader investor:
- 78% Payout Rates on an average Binary Option trade
- Up to 93% ROI on a Call/Put Options
- Up to 750% ROI on One Touch Options
Financial markets are continuously evolving, and with Binary Option brokers provide the latest features such as 60 Second Trading. Volatile markets are seen as positive, because there is action which brings opportunity. And opportunity brings profits.
Remember, with Binary Options the trader is not worried if an asset losses value. It does not matter because Binary Options investors never take possession of the assets. You are only purchasing the asset as a future option. If your prediction of the asset’s direction is inaccurate your future option will be worthless and your investment will be a loss. If you successfully predict the direction the asset will move by the time the expiry ends, your trade will be a success. Your option lands ‘In the Money.’
There are a number of Recommend Brokers (comparison table) on our site for you to choice from.