Day Trading VS Binary Options

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Day Trading VS Binary Options

 

With the coming of binary options, there has been a lot of similarity shown in the platform and when one compares the two, is there really value in the fact that there is much similarity between day trading as well binary options. To understand how the two differ, it is important to compare and contrast the two trading methods.

 

In day trading, there is the buying and selling of securities which takes place on the same day, in most cases online. In this case, traders have to make their money on the basis of small changes that may occur in market fluctuations, thus adjust trading on the basis of the said changes.

 

The most common assets traded in day trading include

 

 Securities: These are financial assets of which a certain value is assigned to them. Common securities are stocks and bonds. There are also derivatives whose price comes from the underlying assets and their value is found by looking at the fluctuations that occur in the underlying asset.

 

Stock: This is a security that offers the owner rights to own a share of the company, thus a share holder.

 

Index: This can be said to be an imaginary portfolio of securities which represent a portion of the market

 

Binary options on the other hand refers to the trade which is performed though price fluctuations occurring in global markets and is not localized to a specific region as in day trading. Due to the high volatility that would occur on a global scale, the binary options trade comes with high risk as well as high reward in equal measure.

 

Binary options provide traders with stocks, indices, foreign exchange as well as commodities options to trade in. A trader must thus be very knowledgeable in whichever trade they engage in binary options, so as to increase odds of making good returns.

 

Day trading and day option trading are excellent ways though which one can choose to invest in.  It is however ideal to try out binary options, as you are able to tap in to the global finance market.