Why there are such high payouts in Binary Options Trading?

Binary Options Trading brought revolution to the world of online investment trading casting the shadow at strong and famous trading markets such as Forex. The revolution is there more about different type of trading than the assets being traded. So what is so revolutionary that made Binary Options Trading so popular recently? The list of answers to this question is very long, and not everybody would agree for each aspect of why Binary Options is going through the developing boom, however there is a fact that everybody should agree that Binary Options Trading is giving incredible payouts of up to 90%. Can you compare this payout with, for example, trading on Forex market?

The fact stays there, Binary Options Trading is providing the traders with the best returns on investment and it cannot be compared with some exotic financial dubious investments. Binary Options Trading is giving you 100% control over your investments! You can always see clear for each trade how much is your potential loss and how much is your potential profit.

By offering two options Binary Options Trading has only two outcomes. The asset is going up, or it is going down. So, where is the profit for Binary Options Brokers? If you do a little bit of simple math you can calculate that return on each trade should be 100% if there is default 50% chance of winning. To keep it simple, you can either lose 100% or win 100% of your investment. Now we have a question why are Binary Options Brokers offering such unfair and low payout of only 90%? Pretty funny turnaround, would you agree?

The answer on this question should also be easy to understand. Our last calculations were based on a default 50% chance of winning (being in the money on the single trade). However that is not correct statement for our case. It is not fair to say that our chances for predicting volatility of the market are 50%, it is going up or down. You can compare it with flipping the coin if you want to look it that way. On the other side, if we know literally anything, at least something about asset we are trading with, our chances are increasing from pure 50% starting chance of being in the money.
Now, to be honest, of course you cannot expect money to fall from the sky straight in your hands, however, after reading this post, you can agree that with at least a little bit of effort and education your chances are becoming very strong to place a profitable trade with Binary Options.

On the other side Binary Options Brokers are rewarding us with up to 90 % payout. Very cool of them, wouldn’t you agree?

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Author: Binary Experts
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