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Pros and cons of Binary Options.One advantage of binary options is that payouts are higher, fixed and known to you before you begin trading. Another significant benefit is that you can earn money regardless of the magnitude of the price change in the stock, commodity or index you chose.The binary options market allows traders to trade financial instruments spread across the currency and commodity markets as well as indices and bonds. This flexibility is unparalleled, and gives traders with the knowledge of how to trade these markets, a one-stop shop to trade all these instruments. Bitcoin, on the other hand, is no more arbitrary than derivatives or credit default swaps. Given that regular folks (if they're nerdy and interested in Bitcoin) can use the currency for all manner of things, including illegal things; it's arguably a far less arbitrary instrument.
The major drawback of high-low binary options is that the reward is always less than the risk. This means a trader must be right a high percentage of the time to cover losses. While payout and risk will fluctuate from broker to broker and instrument to instrument, one thing remains constant: Losing trades will cost the trader more than she/he can make on winning trades. Other types of binary options (not high-low) may provide payouts where the reward is potentially greater than the risk.Final Verdict.For those Swing Trader Pro investors who are looking to invest over a long period of time, binary options may not be the best facility for this. At the heart of binary options, is its ability to provide fast turnarounds to investors. In a number of binary options platforms, there are longer term investments that are available but other traditional investment options which are tailored to long-term results are more suited to meet these financial needs.
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