1) Binary options trading has grown rapidly in popularity, especially in Europe, but making a living from it requires caution. 2) Binary options have some advantages over traditional options like simpler trades that only require predicting price direction rather than magnitude. They also have clearly defined risk/reward ratios. 3) However, binary options also have drawbacks like typically lower rewards compared to risks. Success relies heavily on factors like luck, client base, and market timing that brokers have little control over.

1. Binary Options Trading
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Friday, 2 May 2014
Posted by Natalie Watson at 02:51
Labels: binary options, binary options brokers
Can You Make a Living from Binary Options Trading?
Although binary options, in comparison to traditional options, are new and unregulated, there has been a
meteoric rise in the trade of these “exotic” options. In Europe especially, binary options trading is
extremely popular and these options are widely traded in major European exchanges like EUREX.
Learning the ABC of binary options trading
With such a high growth of popularity in such a short span of time, people might be eager to try and earn a
living as binary options brokers. However, as with all things, one must be careful when testing the waters
with these new options. There are a number of various advantages that binary options trading has over
traditional options trading. Some of these advantages are:
1. Binary options are generally simpler to trade because they only require a sense of the direction the
underlying asset’s price is moving towards as opposed to traditional options which require not only the
sense of direction but the magnitude of the price movement as well.
2. The risk and reward ratio in traditional options have no clearly defined boundaries and therefore the
gains and or losses may be limitless. Binary options, however, have a more controlled risk to reward
ratio, meaning that there are only two outcomes: win a fixed amount or lose a fixed amount.
To sum it up
Therefore, as is obvious, there are some tantalising advantages that might make one appeal to trade in binary
options. However, there are also some major drawbacks as well; chief among them being that the reward is
always less than the risk. Also, binary options brokers, as well the traditional brokers, have no fixed salary
guaranteed to them. Any profit a stock broker makes is completely dependent on the broker’s luck, client
base and a feel for which direction the market is heading towards everyday.
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