Those who have been trading Forex know it well that Binary options, in their most common form, are very different to real options and extremely popular. In fact, they are a bet that the price of an asset will rise or fall within a given time frame. The risk and reward ratio is awesome when Bitcoin binary options trading are done professionally.
If trader wins the bet, the broker pays their stake multiplied with a win payout factor in a specific range that may go from 75% to 95%. Similarly, if trader loses, he pays the stake minus a possible loss payout. Needless to say the trader is trading not against the market, but against the broker and when the brokerloses, the trader makes money.
Thus, Bitcoin binary options are a great trading method where there are a lot of great opportunities to make money. However, this is not a loss game for broker as it can in fact be of advantage for the broker to offer a payout that allows traders to win, as long as most other traders still lose. Thus, he can still not lose and trader still wins trading Bitcoin binary option.
Potential for Making Money Doing Bitcoin Binary Options Trading
Like Forex even Bitcoin allows the creation of smart contracts for binary options. According to the seasoned traders and experts the contract itself holds the funds in escrow and on expiry date pays all the funds to the Bitcoin address that was on the correct side of the true/false statement. This way it is now becoming popular among traders and even brokers.
Needless to say Bitcoin binary options allow the complete elimination of counterparty risk where the solvency of the option issuer is irrelevant if the funds are already locked in the contract itself. Similarly, it is irrelevant if the company or party that issued the option disappears, defaults or wants to change the terms of the contract.
Popular Bitcoin Binary Options Trading Providers
BTC Oracle, TradeRush, BitPlutos, AvaTrade, etc. are some popular Bitcoin binary options trading providers. These brokerage firms are offering exciting range of trading services and even discounts for new traders. AvaTrade in fact has emerged as one of the most popular name in the industry.
SatoshiOption is another name to reckon with when it comes to providing professional and competitive Bitcoin binary options trading for traders.
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