How To Trade Binary Options In The Philippines
Binary options, while relatively young, are overwhelmingly popular. The trading vehicle that’s only been on the scene for about a decade to date is making waves around the world, and for good reason. If traded properly, binary options have the potential to generate massive profits. Today, we’ll talk about what binary options are, the benefits of trading binary options, the one thing that traders in the Philippines really need to consider. So, let’s get right to it…
What Are Binary Options
As mentioned above, retail binary options are a relatively new trading vehicle. First hitting the scene about a decade ago, this trading vehicle has been dubbed as one of the easiest ways to trade. That’s because of the binary concept associated with the vehicle. As the word binary suggests, when it comes to binary options, there are only two possible outcomes. Essentially, traders make predictions with regard to whether the value of an asset is likely to rise or fall. If their prediction is correct, their option expires in the money, generating a profit. However, if their prediction is incorrect, the option expires out of the money generating a loss.
At the end of the day, binary options are what’s known as a derivative investment. This means that the option itself has no value at all. Instead, the value of the trade is derived from the movement in the underlying asset. Therefore, when trading binary options, you’re not buying stocks, commodities, or really any asset. Instead, you are simply making predictions that will either lead to a predetermined profit or a predetermined loss.
Benefits Of Trading Binary Options
There are several benefits to trading binary options. Some of the most appealing for the vast majority of traders include…
- Simplicity – The first thing that proves to be appealing about binary options is the fact that the entire concept is overwhelmingly simplistic. You don’t have to think about how high or low an asset will go. You only have to determine price movement. With only two possible outcomes, and overwhelmingly intuitive trading platforms, even beginners to the investing and trading world have the ability to turn a profit.
- Predetermination – One of the hardest parts about investing is determining what the potential upside is and what the potential downside is to every trade. However, with binary options, all of this is predetermined. The trader knows exactly how much money they stand to gain and how much they stand to lose before the trade is ever made.
- Profits – Binary options come with the potential of earning overwhelmingly high profits. In traditional investing, a 10% profit over the course of 3 or 4 months is considered incredible. However, in the world of binary options, trades normally have the potential to generate 70% or more in profits for the trader, even with expiry times as short as 60 seconds.
- Excitement – Finally, binary options traders love the excitement involved in the process. While investing is generally a slow moving, and for many admittedly boring, with binary options, that’s not the case. Because of short expiry periods and high profits, the process is far more exciting than traditional forms of investing and trading.
What Traders In The Philippines Need To Think About
Because of the fact that binary options are a relatively new trading vehicle, regulation surrounding the vehicle is minimal. In fact, in the Philippines, there is no regulation surrounding binary options. Unfortunately, this opens the door for scams and brokers that make moves that aren’t in the best interest of traders. As a result, it’s incredibly important to be aware of these scams and do your best to avoid them. One of the best ways to go about doing so is to choose to work with a well-known, well-respected, trusted broker. Some solid brokers off of the top of my mind include 24Option, AnyOption, and Iqoption.
At the end of the day, there’s a good reason that binary options are so popular. They’re fun to trade, easy to understand, and most importantly, incredibly profitable. However if you’re trading in the Philippines, it’s a good idea to take the time to research the broker you choose to work with. With a lack of regulation, avoiding scams is a must!
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