Can You Really Make Money Trading Binary Options? Note from Kalen: This article is for informational purposes only. If you’re interested in binary options canada legal drinking options, this shows some things you need to know. Trade binary options at your own risk, and if you do decide to give them a try, learn what you’re doing before diving in head first. Binary Options trading isn’t a scam, but it does require a lot of work, and it can be risky.

Check out The Truth About Binary Options before investing. Binary options have become a popular way of trading financial assets online because of their simplicity and high returns. Nonetheless, various researches still show that only less than 30% of retail traders achieve profitability trading this market. For this reason, most investors often question whether it is possible to really make money trading binary options.

The short answer is YES, but the long answer is that it requires hard work, commitment and dedication to consistently churn out profits from the binary options market. Risk/Reward Ratio. Most critics of the legitimacy of binary options trading usually cite the risk/reward ratio that traders are exposed to when trading this market. On platforms such as Option.FM, traders can receive returns of up to 91% on trades they place in the market. This is one of the highest returns in the industry.

Such a return means that, if a trader places a $100 trade, he stands to gain $91 if he is right. However, if he is wrong, he will lose $100. His risk is essentially greater than his potential reward. This is the reason most critics dismiss binary options as a derivative of gambling. However, what the critics fail to acknowledge is the ease of trading binary options as well as the potential to return profits within a quick turnaround time. In binary options, traders will book definite profits if the asset price closes higher or lower (even fractionally) than the strike price.

In other market such as forex, the amount of profits will depend on how far away the asset price moves from the strike price. In such a market, traders need to perform more thorough and in depth analysis than in binary options. If the markets are less volatile, traders in such markets will also have worse risk/reward ratios than in the binary options market. In binary options, traders have the opportunity of returning profits quicker than in other markets. On platforms such as Option.FM, traders can trade contracts with expiry times of up to 30 seconds.

This gives traders the chance to make money within a quick turnaround time. Making huge returns within such a short time is not possible in other markets. How to Make Money Consistently with Binary Options.