Binary options trading tends to have a bad reputation. This is due to the generally unscrupulous practices of brokers based overseas. Most traders have heard of binary options but unfortunately they probably haven’t been completely accurate information on the benefits and advantages of trading binary options. In reality Nadex binary options offer a trader a product that allows them to manage risk and trade markets in ways that before were unavailable. What most traders also fail to realize is Nadex is subject to regulatory oversight by the CFTC (Commodity Futures Trading Commission). This means that a trader should have no worries at all about the security of their account. All member funds are held in segregated bank account within the U.S. so the stories you may have heard about binary options do not apply to binary option trading at Nadex.
With the ability to trade binary options in a safe, secure, and regulated environment that Nadex provides traders can access one of the most versatile products available. Binary options can only be worth $100 at a maximum and zero at a minimum. This allows for a trader to calculate their exposure at any given time and know with certainty how much they can profit or lose in a trade. No other financial product can really offer this to traders. Traders interested in trading commodities, stock indices, or currency pairs may find that trading these markets via futures or other derivatives can be very capital intensive and riskier than they are comfortable with.
Binaries give access to these markets to all traders regardless of their account size. Due to the relatively small notational value of binary options a trader can use them to trade positions of any size. As already discussed the settlement nature of binaries also helps traders build positions with precise levels of risk and reward making binary options an incredibly versatile product. This “natural stop” built into binary options allows for traders to hold positions longer as well which is particularly valuable in current market conditions. The number of large intraday reversals that we have seen makes it hard for traders to enter trades without taking on a large amount of risk. If you have been struggling with the current market conditions you may want to consider trading binary options as they make risk management in an environment like this much easier for a trader. Risk management is the most important aspect of trading so it is very important for a trader to use whatever tools are available to them. Add binary options to your toolset and you will see just how beneficial the advantages of the product can be.