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How To Make Money With Options Trading – The Binary Option

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. Amazingly retail brokers don’t typically operate a spread on the daily or hourly expiration securities, allowing for zero transaction costs. With low cost and high return possibilities even minimal cap investors can find a way to make money fast and easy using them. Zero Transaction Cost and Low Capital Requirements Open Markets for Retail InvestorsNo spread or commission on a typical investment means the money required to earn a decent return on investment is not heavily encumbered by fees the way a standard trade would be. Most retail brokerages offer these easy options trading contracts in lots as small as thirty dollars and a minimum initial deposit of just one hundred dollars. Try making money with online stock or option investment with just a hundred bucks at a normal account. The hurdle transaction costs are just too high. Short Holding Period Brings Fast ResultsOne of the other attractive features of the binary contract is the duration of the trade, which usually is as little as an hour to as long as a day or a week. An aggressive person can turn over their capital four to five times in a given day with the opportunity to be making money with each successive capital turn. The fixed short holding period relieves the investor of the burden of deciding when to sell – as these european style option expirations are designed to be held to maturity – a low maintenance way of putting your money to work for a short amount of time.