The profit in binary option trades is indeed the highest you can reach, using an official financial asset. Most commonly, the profit rate is somewhere between 70% and 85%, but that’s only the starting point. The profit on certain binary option trades can go as high as 700%!
How is this possible? How come that a binary option, of all the other trading assets, provides the highest profit?
To answer this question, we must go back to the binary option basics. It’s the very design of binary options, which is responsible for their profit-making ability!
When you trade a binary option, you do not have to own the (physical) asset. For instance, if you trade oil binary options, you do not need to actually own any oil. You do not even need to know what a barrel looks like! It’s because, when you trade a binary option, you actually trade according to a contract. This contract allows you a fixed profit rate, if your prediction of the direction of the price is right. Owning a binary option, is similar to owning some company’s stocks. Say you own 1% of the company – you do not actually have a piece of every desk, chair, window, lamp, and other of the company’s belongings!
Why is this important for the profit? Because, if you do not own an asset, you cannot have any additional expenses. With oil, per se, you would have to deal, worry and pay for the:
– delivery, once you find the buyer, and so forth.
Trading binary options relieves you of all this work, and, even more importantly, all the associated expenses. Therefore, all of the profit you make form a binary option, stays in your pocket!
Another important point is that binary options are a web-based, online trading system. You would be surprised how many broker expenses are avoided by this setting only! As a result, the brokers can offer higher profit rates!
Also, the (good) brokers do not ask for fees and commissions! Another additional expense avoided!
Binary options focus on the direction of the price. There are no spreads, pips, and other limiting factors. Since the direction of the price can be either according to your binary option, or in contrast with it, the profit is fixed – as it does not depend on the difference in the price! Again, a point for binary options – this way the traders can enjoy the highest profit rates, even if the difference in the price is as tiny as a penny!
The best of all is – the binary option profits are predetermined! Since there are no other influences except for the direction of the price, the profit can be set before the trade starts, so that everyone has the equal chance, no matter how much they invest! Another benefit is that since you can see the trading conditions fully disclosed beforehand, if you do not like them, you can simply decide not to trade at that moment, and wait for the better opportunity!
Binary options are the only trading system that does exactly what it promises! No hidden costs, no re-quotes – the conditions that you have agreed on, will stay the same throughout the trade, guaranteed! That is why a binary option offers the highest profit – with no extra costs to the trader, and fixed rates, it’s the best trading system on today’s markets!