Four Things Smart People Have WRONG About Binary Options

Four Things Smart People Have WRONG About Binary Options

Four Things Smart People Have WRONG About Binary Options
Four Things Smart People Have WRONG About Binary Options

Four Things Smart People Have WRONG About Binary Options

Four Things Smart People Have WRONG About Binary Options

 

1) WRONG to think Binary Options are complicated

Markets can only do three things… go up, go down, or go sideways.  Binary options can potentially profit from where a market goes or even where it doesn’t…   Either the underlying market finishes above or below the strike at expiration to determine value of $100 or $0… couldn’t be more simple than that.

 

2)  WRONG to think Binary Options are gambling

A key benefit of using options is better probability control.  An outright  buy or sell  investment has a 50/50 chance of that market rising or falling compared to option odds that can be chosen to based on probability.  Buying out of the money options have lower probability of success than the in the money options and that is why they cost less.  Balance the reward to risk to fit your risk profile and trading personality knowing the Binary Option maximum payoff is $100 and worst case scenario is $0.

 

3) WRONG to think Binary Options are risky

Binary Options have absolutely limited risk so risk control is automatically built in.  The worst thing that can happen is an finishing with zero dollar value. That is the maximum loss no matter what happens in the market.  Binary Options are no different than other investment vehicles in the fact that allocation and money management are critical to long term success.  One benefit is that the total dollars at risk on any Binary Option trade is known before entry.

 

4) WRONG to think Binary Options require constant attention

Binary Options fit all lifestyles from those who want to watch every tick to a arms length investor with a set it and forget it trading plan.  The combination of limited risk and staying power to ride market ups and downs lets Binary Options traders focus solely on the price at expiration and not worry about the path it takes to get there.

The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex instruments include forex, stock indexes, commodity futures, and economic events.

Nadex binary options and spreads can be volatile and investors risk losing their investment on any given transaction. However, the limited-risk nature of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.