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Options Trading

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					Traders using traditional methods are not easy options trading for the average investor.
Although it is possible to acheive very high yields on short term investments very few
people yet know about a new specia type of investment security.A number of books
on investing topics such as forex trading or selling options make those opporutnities
sound easy they are not.

Enter a Simple Solution: Binary Options
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 Investors
The 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
Investors
No 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 Results
One 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.

Some traders who have limited capital and are prevented from getting access to
standard options instead make money with binary options instead.

See more about both types of options at our free options trading articles.

				
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