Unlike using exchange traded option strategies, when traders engage in the trading of binary options, the profit is typically designed to be a fixed amount of return. This is especially the case if the option reaches its expiry being in-the-money. When binary options reach expiry without any price movement at all in the underlying asset, traders will usually receive the amount of their investment back.
In some cases, binary options trading platforms may even pay out a small amount of return to the losers, making binary options a form of financial trade whereby there is a high payout for traders that have success, and nothing – or near to nothing – for those that lose.
Prof. Binary’s Trading Tip: Did you know that not every broker offers a bonus when you deposit money? You have to be very careful and can’t expect to get bonus money everywhere you want. This is especially true since Cysec does not allow their brokers to offer deposit bonuses any more. So you had to look for a non Cysec broker (something we cannot recommend).
What are Bonuses on Binary Options Trades?
Because there are many binary options trading platforms coming into existence, there is a great deal of competition in terms of enticing traders to use these entities. Therefore, many trading platforms have turned to offering some type of incentive or bonus to traders when they open an account.
Some examples of bonuses include giving a trader a certain dollar amount or a certain percentage of funds over and above the amount that they have initially invested. For instance, some bonuses range between 25 and 50 percent of a trader’s initial deposit. Typically, the amount of bonus that a trading platform may offer is capped at a certain maximum limit.
Why are Bonuses Offered on Binary Options Trades?
The offering of bonuses began in 2006, when Forex trading platforms began to offer additional funds to traders as a way of getting – or keeping – them with the particular trading website. Since then, the practice has become common among many different investment and trading sites.
In addition to the enticement of new or existing users to trade – or continue trading – on binary options platforms, the offering of bonuses can also help these platforms in increasing their capacity to operate in the market.
This practice essentially allows the trader to use an amount of money that he or she would otherwise not have available to put towards their options trades. Therefore, with the additional amount of funds to be used, traders have the potential to drastically increase their payout, while also creating business for the trading platform.
This practice can literally help a trader to create even more potential profit opportunity if they generate commissions that are either equal to or more than the bonus that they are offered. In addition, these bonuses can essentially help the trader in developing an entire options portfolio.
How Traders Can Receive Binary Options Bonuses
There are numerous opportunities for traders to capitalize on bonuses that are offered by binary options platforms. First, one of the very best times to obtain such a bonus is when a trader opens a new account.
In addition, platforms may also provide bonuses to traders when the market is going through a particularly volatile session. In doing so at this time, the trading platforms are technically showing the potential advantages of the binary options market, while at the same time allowing traders to take advantage of the potential for profit opportunities during particular market swings.
