What are the Advantages and Disadvantages of Binary Options?

Binary options are one of the markets you can get into if you want to trade assets in the market. You can earn quite a good deal of money by investing in binary options, but before you cash in, there are a few things that you should know about investing in binary options markets.

What are binary options?

A binary option is a type of investment wherein payout is an asset, fixed amount, or nothing. There are two distinct binary options namely asset or nothing or cash or nothing. The cash or nothing binary option pays out a certain amount of money once the option expires. Meanwhile, the asset or nothing binary option pays out the value of the security that you bought and traded in the market. In the binary options market, there are only two outcomes, hence the name ‘binary options’. Binary options are also known as digital options, all or nothing options, or fixed return options. If an investor believes that the market will peak, the investor would buy a ‘call’. On the other hand if an investor thinks that the market will sink, she or he will buy a ‘put’.

When you invest in a binary option, the potential payout is determined even before the asset is bought. Binary options are available for purchase in most financial products and can be purchased through put/down or call/up options. The ability of a binary option to be purchased in both directions enables investors to go short or long on a wide variety of financial products that are being traded. Binary options have a fixed expiration which can be 30 minutes or towards the end of the trading day.

What are the advantages and disadvantages of choosing to invest in binary options?

There are advantages and disadvantages when it comes to trading in binary options.

Advantages

Risk Control

Even before you start investing and trading you will determine the amount of money you would like to invest. After determining the amount of money you would like to invest, the amount that you can earn or lose will be revealed to you. You will know the return you will get even before trading begins. If you think that you will be unable to get a good return, you can increase or decrease the amount you want to invest.

Big Payouts

The biggest advantage of trading in binary options is that you can easily make more than 80% of your investment in a short amount of time.

Low Capital Requirements

The binary options market allows investors and traders to start with only $25. Unlike traditional options, binary options enable you to start trading with such a small capital investment.

Short Trading Periods

Another advantage of joining the binary options market is that the trader chooses the expiry date. The trader can set end of the trading day, end of the week, or even end of the month expiry dates.

Disadvantages

Loss of Gains Quickly

Binary options can net you a return quickly but it can also lead to a huge loss quickly. If your prognosis is wrong, you will end up losing up to 95% of the investments you put into the market.

Limited Tools Available

Since a trader only has two options when it comes to trading in binary options markets, there are not that many tools that can help a trader navigate the market.

These are some of the disadvantages and advantages of trading in the binary options market.

Should you invest in binary options?

The simplicity of the binary options market makes it the perfect trading ground for budding traders and investors. One can also easily make a profit through the binary options market. The advantages of trading in binary options market outweigh its disadvantages. But it will depend on your objectives if you want to invest in the binary options market.

Dealing with Common Financial Mistakes That Newlyweds Make

Starting a new level of life together as couple is very exciting. However, that wedded bliss may immediately turn into an awful squabble fest for the newly wed who are not on the same financial page. To avoid poor fiscal habits enter and wreck your precious relationship, take a look at these 3 common financial errors made by new couples and what are the things to be done in order to avoid these errors.

Not Talking About Your Finances

The biggest mistake that couples usually make before entering marriage is not talking about money. Finances can bring out wide range of emotions especially when people handle money in a different way. It is important that you talk about your plans on how to save and spend money before you enter marriage as it can end up to a fight afterward. Oftentimes, many couples tend to avoid discussing the details of their financial status until they start to have growing problems.

It is important that you both discuss on every financial detail. For example, it’s essential to talk about the debts each one have so that financial obligations will be clearly planned before being brought into marriage. Also, newlyweds should discuss their own financial goals like buying a home, car, and retirement planning. Discussions must also include both of your values and beliefs concerning finances. The greatest way to avoid all of these is to be open to each other regarding finances, show each of your credit reports, review them together, and make plans on how to handle money.

Never Make Separate Finances

When you decided to get married, you agreed to have a partner in life – making marriage a partnership. That is the reason why it’s very necessary for spouses to plan and manage on their finances as well as set their financial goals. Most newlyweds make error of assuming that they can have separate money and never join together on one financial page. However, newlyweds should always remember that discussing money and combining finances is an important factor for a stronger marriage bond. It can even help increase the net worth of your household.

According to a marriage expert, a healthy marriage has a system of balances and checks and putting together all the resources, in order to provide better security for a long term investment. Newlyweds should always spend time to discuss money in a peaceful way without accusations and finger-pointing to better understand each other and set effective financial actions.

You can try setting up a system when it comes to paying household bills and decide who will be the one responsible for every task. Try to find out your common financial goals and set up an ideal plan so that you’ll be able to reach them. If newlyweds want to have children in the future, it’s best to discuss about them before they arrive. Mostly, newlyweds have different views on whether one of you should stay home or not with children as well as how it will affect your finances. These things matter a lot that’s why planning it ahead of time is the best way to avoid arguments afterward.

Coping Up With Individual Debts

Most new couples enter marriage with their individual debts, and even debt from a lavish, extravagant wedding. According to a wedding report, average American couples spend more or less $19,000 in their wedding, and that doesn’t include the cost of honeymoon or wedding ring yet. Even if couples strive to keep their wedding to the most humble budget, expenses still continue to add up and most of that spending has been paid through credit cards. Newlyweds should learn how to cope up with their individual debts through discussing it and setting their own financial goals.