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Index Binary Options

Trading indices can be very confusing, especially for short term traders. These act as a great way to measure the health of the stock markets, but a lot of people don’t even know where to begin when they want to start trading these. There are many active stock traders that could grow their potential for profits just by incorporating an index or two into their portfolio. You don’t need to look far to start trading indices, though, even if you want to trade foreign indices. With binary options, you can trade indices from all over the world—all from the same web platform. Binary options make index trading a lot more simplified and they can even cater to short term investors in a way that traditional index trading cannot replicate.

The first benefit is convenience. If you want to trade the Dow Jones Industrial Average, for example, you would have to register with a broker, and then you would need to invest thousands of dollars in order to eke out a small profit. But with options, you can find big returns off of small trades. A successful 15 minute option of $200 could return $146 back into your account, a profit rate of 73 percent. To make this much in a traditional setting, you would have to invest thousands of dollars on a lucky day.

But this isn’t all. International investors would have to register with multiple brokers if they want to trade the Dow and Japan’s Nikkei 225. But with a single binary options brokerage, you can gain access to both of these markets without even having to change screens—even though they are located on different sides of the world. Just a few clicks of your mouse and you can execute trades on both indices within a matter of seconds. This is a huge benefit and can speed up your trading day quite easily. It eliminates a lot of the hassle of using different brokers by consolidating your trading to a single platform.

Index TradingThe short term nature of binary options can let you make more money in a shorter period of time. A day’s investment with a stock broker might make you a few dollars, but you can make much more within as little as an hour if you are a skilled binary option trader. But more importantly, your method of analyzing things can be very different just based upon how long of a timeframe you are looking at. A traditional index trader will have to rely very heavily upon fundamental analysis methods in order to give themselves a good feel for where markets will be in a week, a month, or a year. But when you are trading 15 minute options, you will want to look more at the technical side of things. This has a distinct advantage to it. Regardless of what you are trading, charts are transferable. A MACD line on a currency pair’s chart will have the same meaning as a MACD line on an index’s chart. This will help people familiar with one type of short term trading, such as commodities, be profitable in index trading, too.

Binary options bring a sense of universality to your trading. You can trade multiple assets, multiple markets, multiple timeframes, and multiple sub-classes of options all from the same broker. For those that are looking for diversity, trading index binary options can be a great way to add a new element to your trading without much of a hassle. This is one of the simplest ways to diversify your trading portfolio, and the potential for profits here are much higher than most other types of trading.

Risk Disclaimer