It is no coincidence that market traders using instruments such as the world’s major indices have been dramatically switching their investment plans of late. A powerful combination of globally disruptive economic factors is making even hardened of traders twitchy. “Febrile markets” have meant that even the most seasoned of market investors have even been losing lots of money over what is becoming an extended length of time, with no immediate let up in sight.
A strong return on investment has rapidly become the holy grail of the trader on world markets such as the FTSE 100, Dow Jones, Wall St., Hang Seng, amongst others.
Recently, however a new way to beat market volatility has appeared, for those traders who prefer spread-betting strategies in particular; specifically, binary trading offers solutions for protecting your account which were previously missing.
Why is this new strategy working?
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A number of solid reasons make binary trading a desirable option to previously preferred strategies; in particular:
• Binary bets / Binary options take some of the pressure out of market volatility. They offer more predictable and sound money management, with financial fixed odds. Placing one’s bet with prior agreed fixed profits, depending upon a win or lose result, means that the trader knows exactly how much their winnings or losses will be at the outset of the binary bet placement.
• Flexibility of systems. Binary betting can be applied to all of the major world indices over time periods preferred by the trader. So a binary bet can be placed for a single day, a week or longer with indices such as the: FTSE 100, Dow Jones, Hang Seng, Australian Index, amongst some of the European and Far Eastern platforms.
• Binary betting can become either a simple alternative or an additional strategy to narrow the risk-return ratio, bringing increased consistency of earnings to your investment portfolio and greater peace of mind.
• Forget complex derivatives or unpredictable commodities; the trader no longer needs a thorough investigation of the companies or obscure mechanisms he is considering investing in. A basic knowledge, with a modest stake can bring greater returns on your binary bet, if your knowledge of the instruments used is sound and your instincts are correct.
• For those of you traditionally using strategies such as spread-betting or futures, you will know that in theory you are open to unlimited losses, hence your need for the stoploss. The problem with this, of course, is that in volatile, or even fairly moderately moving market, if your stop is hit, that’s the end of your trade, with a loss, whilst with your binary bet / trade it does not matter where the market moves up or down during the day as it is only interested in where the market finishes. This simplifies the variables involved and increases your odds.