Binary options can offer amongst the fastest returns compared to other types of trading. This is because online binary options are offered in all different lengths, from 60 seconds long to several weeks long. If you execute a successful trade on a 60-second binary option, it means that you could be collecting your profit after just one minute of placing your trade. This short –term nature of binary options is one of the biggest advantages to this type of trading.
Binary Options also enable traders to benefit from just the smallest movements on the financial markets. For example, you may place a trade of $100 by creating a ‘Call’ option (estimating the stock price of a particular asset will go up by the expiration time). At the time of expiration, even if the stock went up by just 0.00001%, you will still receive the same payout as you would have received had the stock increased in value by 200%.
However, in traditional forms of trading where you actually buy and sell shares, your profit on a particular trade will increase in proportion with the increase of the value of the asset. This means that both the gains and losses can be potentially much larger in tradition trading. With binary options the payout is pre-set, and you know exactly how much you stand to lose or potentially earn before even placing the trade.