How Are Futures Trading More Beneficial Than Trading In Options

Posted by on Jun 8, 2017 in Default |

Futures are commodities that are bought and sold at a fixed price for a fixed date. These commodities, and financial products are also traded on the basis that the investor or trader will bear the cost if there is any difference in price.

Options are also derivative instruments. They get their value from an asset. When trading in options, there is no obligation on the buyer to actually sell the asset at a given date. The buyer can sell the product, but there is no compulsion on when to sell.

They can both be traded online through apps like the Infinity app. However, that doesn’t posit an advantage or a disadvantage.

However, there are significant advantages of futures over options. Let’s have a look:

  • Futures are great for specific investments – if one were to trade in stocks, for example, it might not be the best idea to trade in futures. However, if you are trading in commodities, indexes or even currencies, then, trading in futures is better than trading in options. Since futures have standardized features, they are an ideal investment for those investors and traders who are risk-tolerant. Since futures also have a high leverage, investors usually get access to markets they didn’t before.
  • Fixed costs – There are certain things about futures options that haven’t changed in years and years. Among them is the margin requirement especially for commodities and currencies. When an asset (like a currency) is volatile, the requirements might change, but this happens very rarely. When trading in futures, a trader knows the amount to be invested.
  • Time is not a factor in its value – with futures, there is a fixed time of delivery. Which means that a commodity will be traded or bought or sold at a specific time. There is no workaround with his fact. However, options decline in value over time, also known as time decay. If an options trader does not pay attention to this fact, they will find themselves in possession of an asset that no longer has any value. This is a loss for them. However, a futures trader knows the time within which the trade will happen and this doesn’t change.
  • Liquidity – when it comes to commodities and currencies, the futures markets are very liquid. Especially if these are common markets at which these are traded. Because of this traders have are reassured that they can enter and leave when required and will not suffer too much for it. With options however, liquidity is not a given. Since there is the problem of time decay associated with them as well, options prove to be the better bet when they are at their peak value and not a day later than that.
  • It is easier to understand – if you’re trading in agricultural futures it is so easy to understand and trade in. With options however, the math is a wee bit more complicated and takes people a long time to work out.
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The Importance of 24Option

The Importance of 24Option

Posted by on Sep 20, 2016 in Default |

If you are looking for a trusting binary option broker, perhaps consider the 24Option brokers to guide you in all of your trading endeavors. Most of the binary brokers are using 24Option because of it is user friendly and well known to all traders and brokers. As you want to trade there are a variety of value that you can use in the trading such as the asset, stocks, indices, commodities and shares. You can also register to their demo account to give you an ample time to practice your skills and develop your strategies accordingly. Opportunities like this will lead you to a greater field of success by gaining profit and lesser chance of loosing.

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As part of the learning process, the demo trading helps you in becoming a better trader not only skills and strategies but also with the assistance of a binary broker, you will experience how it is to win even though you are only using paper trading at the moment. Its advantage is purely to give you the best results. Through knowledge, you will eventually improve. Most traders especially the new ones are very aggressive and wants to start the trading right away even without understanding how it all works. So, it is important that before you are going to start entering the trades, make sure that you understand how the platform works.

Here are the following reasons as to why you need to use the 24Option:

It has a maximum payouts- Traders rave about the big payouts that you can get from the 24Option. Most of these payouts tend to be increasing with more of the liquid assets. Imagine if clients are trading using the sixty seconds option, and have made about seventy percent profit, this means that it is a huge change and that is even far greater. More so, even if you earned more, there will be times that you will also lose your invested capital. However, if you wish to see the how everything has been going, the history is viewable and perhaps thinking of changing strategies is your other option.

Different types of account- There are websites that offers motivating tools that can help you become better traders and even make you earn the benefits such as touch options, high and low and the high-yield options. Most accounts come in two types: the Platinum and the Standard accounts. These two are different from each other when it comes to a return of investment.

 Assets- all trades are different especially when it comes to assets like currencies, stocks such as Google, commodities like silver and gold and indices. These types of assets provide ways in the trading system which are very encouraging.

Withdrawals and the deposits- it is important that you have opened an account and registered as well. Make sure that your broker is updated or else you will be removed and the hardest part would be, not able to withdraw anything.

The 24Option platform is not confusing if you literally understand how it works. This provides a higher return of investment if you know how to play it well with your skills and strategies. With more winnings, this will make the binary broker more recommendable to new and old traders.

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