High-Risk / High-Return Investment

High-Risk / High-Return Investment

In contrast, binaries offer a trading choice, which is also high-risk / high-reward.

For example, if the trader is correct, they will see a return on their investment of somewhere between 70% and 95%, “Amount to be credited to account for a successful trade”, paid as soon as the option period has settled, or perhaps within just a few minutes. On the other hand, if the market moves against the trader, they lose their full investment.

Although, there is, however, no leveraged exposure with a binary trade, of which the structure gives binary trading its strength when it comes to managing the risk and reward ratio. Consequently, it is a tool that can be used to hedge other investments or it can also be operated as an investment vehicle in its own right. Thus, there are a wealth of trading patterns, and each caters to a specific investment need.