Trading

One easy options trading method is to use a security called a binary trade. Although this type of contract is traded only on a very limited number of securities it offers several advantages over traditional trades, including lower capital requirements, shorter holding period, and a high fixed yield. In today’s market, it would seem that this type of easy options trading is ideal given the market’s present low yields, high volatility, and tight capital availability. Extremely High Yields Attract InvestorsThe holding period rate of return on a binary option contract is typically around 70%, depending on the broker and security. Yield goes up dramatically for longer duration contracts where a spread is involved.

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