Why Binary Betting?
The trajectory of binary betting has largely paired that of spread betting, with the two closely aligned as services offered by spread betting brokers. As a degree of flexibility, binary betting can add significant value to the trader’s portfolio. But aside from flexibility, there are a number of other reasons why binary betting is proving a popular investment method.
One of the key strengths as far as binary betting is concerned is the fact that no matter the degree of market movements, the trader will always profit a fixed amount from an upward rise. This, of course, caps profits at a ceiling, but it allows the trader to capitalize on market direction as a binary, straightforward proposition – i.e. the trader either wins big, or loses in equal measure.
This allows traders to focus solely on the factors that contribute to market or index movement, rather than requiring an analysis of pricing, which can be a particularly tricky, mathematic-intensive and deeply involved process. Simply judge whether a market or commodity will do well or not over the period, and take a corresponding position.
Another handy feature of binary betting is the capped losses it provides. Unlike many other leveraged trading products, binary betting will only ever cost you the multiple of the buy point and your stake. This allows traders to guarantee, with absolutely certainty, their exposure to loss (and indeed the profits available to them) from a given transaction.
These features combine to make binary betting a particularly useful addition to the trading line-up. Many more experienced traders still consider binary betting to be something of a consumer investment product rather than a serious investment opportunity, but this often comes from a place of market snobbery. In actual fact, binary betting provides an extremely useful trading basis for both novices and the more experienced trader, with all the advantages of spread betting, less the volatility in returns.