When prices are increasing, it is called a Bull-Market. When prices are decreasing, it is called a Bear-Market. The Bull-Market pattern of an overall increasing-in-prices market is generally perceived as the safer market and attracts a majority of conservative investors and fund managers. On the other hand, the Bear-Market pattern of an overall decreasing-in-prices market is seen as riskier because of the selling momentum build-up when Bull-Markets reverse and stop-losses are hit creating a snow-ball effect. The great equalizer of trading instruments is the use of Binary Options, which are effective in both Bull and Bear Markets.
Binary Options work to lower the risk of Bear-Markets because traders are trading in the direction of the trend. With the purchase of a Binary Option, you are only choosing the direction the instrument will close at expiry time. As Binary Options are traded in one hour windows, you can time your purchase to coincide with the trending pattern occurring and profit quite considerably – usually Binary Options offer payouts of up to 81%.
Binary Options pay out the same high payout rate regardless of how long the Bear-Market (or actually the same principal also applies in a Bull-Market) goes on for. So long as you have purchased the Binary Option at the time of the trending pattern, and it expires in the direction you had predicted, then you receive a payout. Additionally, Binary Options trading involves no leverage – so any losses, in the event of a reversal of market condition and hence, your prediction turns out to have been wrong in this case – your loss is both fixed and known in advance. The fact that there is no leverage in Binary Options trading minimizes your overall risk – so not only does it make trading in a Bear-Market less risky but you also would lose considerably less of your invested amount than had you traded in the Bear-Market with a traditional leveraged day trading instrument.
Day traders choose Binary Options as the trading instrument to equalize market conditions. They are easy to use, simple to understand, and important trading instruments to employ. Whether you are looking to reduce risk in a Bear-Market, or profit when you see a trend occurring in either market, Binary Options offer a great solution.
Learn more at www.startoptions.com/learn
Fair value payout of such a binary option would be 100%. Obviously there needs to be a commission/spread – but their 81% is such a rip-off. There is no way to trade this successfully over the long haul with a 19% edge-loss.