Will The Binary Options Rush End?
Binary Options seem to have taken the investment market by storm. More and more investors are now moving into binary options trading and taking advantage of a fixed high-yield return over traditional Forex profits. In Forex trading, profits are typically dependent on risk appetite and the ability of a trader to properly analyse trends as well as catching reversals at the top or bottom. Binary options, on the other hand, offer as much as 80% profit from just a pips move in the right direction. Even US regulatory agencies, the SEC and the CFTC, have legalized Binary Options by offering exchange traded Binary Options through regulated brokers.
However, traditional investors and day traders are still apprehensive about the implications of Binary Options trading on the overall health of the economy. Many old-school traders still consider Binary Options to be a form of gambling, as the “all or nothing” nature of Binary Options trading is akin to betting on the roulette table. According to a recent survey from the Bank For International Settlements, the daily turnover in the Forex market is valued at $5.3 trillion, and has seen more than a 33% jump from the previous estimates in 2011. Such high volume of trading, is supported by both institutional traders as well as individual traders who still consider Forex trading to be the benchmark for all investments.
The Evolution Of Binary Options & Forex Trading
Binary Options offer the simplicity of predicting price movement over a very short amount of time, which is fast, easy, and convenient for short-term investors. Nowadays, investors are looking for considerable profits within a very short span of time. Unlike traditional investors, modern day investors are not looking for huge gains over extended periods of time, but are more oriented towards making maximum returns within the shortest duration. This is one of the main reasons Binary Options trading has exploded into the public domain, irrespective of whether the average investor makes or loses money in Binary Options.
Binary Options also offer the excitement of on-the-edge trading, which used to be a prominent feature of Forex trading. However, modern day Forex traders have become more cautious, and Forex no longer offers the kind of excitement that Binary Options does. Another reason for its success is that Binary Options don’t require an investor to be sat at a computer terminal for hours on end, looking at charts and decoding patterns. Most Binary Options trades are over within seconds, minutes, or hours at the most. Mobile trading has also enabled investors to trade Binary Options from virtually any location, without the need to access large monitors or other supporting devices.