Binary options are offered on stock prices of major local and international companies. Unlike investing in the stocks themselves and incurring greater trading costs, binary options enable the trader to take a calculated risk within a defined price range. This way your win and loss potential is predetermined and you can avoid nasty surprises when markets crash.
All you need to do in order to trade stocks binary options is decide which way the price of the stock will head and make your trade accordingly. This simplifies the stock market and has resulted in many traders hedging their stock market trading with binary options or abandoning the stock market altogether and investing in trading binaries as a safer trading option that offers high returns.