For wikitrader software anyone in the United States, binary options are a fairly new kind of investment. Binary options were approved in May of 2008 by the Securities and Exchange Commission to be listed and it remains a bit of an unknown for individual investors throughout the United States. It goes without saying that there are several keybenefits that come along with binary options when compared to vanilla options, as well as other types of investments in the financial sector and the stock market. These are some of the main benefits:
Binary options are a simple form of investment. When you want to invest, all you need is the knowledge of the underlying asset, such as the currency pair, commodity, stock or index, and what it is going to do over the short term. While it may be easier said than done, the beauty comes in how much underlying assets gain or lose that is important. The losses or profits will not be impacted by the magnitude of the loss or the gain. When you lose, you lose. When you win, you win. This is why they are called binary, as there are only two outcomes.
With a binary option, it will expire in a short period of time, which can be in as little as an hour in some instances. As mentioned before, the return will not be impacted by the amount of the change for the underlying asset. Because of this, you will get full profit within an hour or less.
With most investments, you will not have any way of knowing that you could stand to gain or lose on certain investments. There could be an idea of how much a stock may rise, or fall. However, you are never going to know just how much you will lose or gain from it. With a binary option investment, you will have this knowledge just before you end up making the investment, which is very comforting for most people.