Is Binary Options Trading Profitable
The most important question people ask involves whether binary options trading is profitable. That is a fair question to ask and I could sit here and tell you it depends on how good a trader you are but honestly I will not do that. Why don’t we instead take a look at some more broad statistics over a wider number of traders and try to draw some conclusions that way.
Recent Trading Statistics for December 2012
I took a look at all trading data available to me and while I can not divulge individual profit / loss records of anyone or everyone (as I do not have access to that data) what I can do is compare trading volume with deposits made. When I look at those statistics for December 2012 I see a volume to deposit ratio of 53:1!
What does that mean? Simply stated that means that for every $1 of customer deposits – $53 dollars in trading volume was generated. Given that binary options are (on an individual contract basis) an all or nothing proposition, that would suggest any ratio of less than 2:1 would be considered unprofitable. A ratio of 53:1 suggests that (at least for some traders), binary options trading is very profitable indeed.
How Do Profit Results Stack Up with the Rest of 2012
We have monitored trading activity on accounts (to the extent we could with the resources we had access to), and on average the lifetime volume ratio has been over 10:1 – and in 2012 it was closer to 15:1. This would indicate that retail traders (these are all retail trading accounts) appear to have been doing slightly better in 2012 than they have historically (data goes back to 2008).
Does This Mean I Will Make Money Trading Binary Options?
The short answer is no, there is no guarantee that you or anyone will make money trading binary options or any other type of asset. On the other hand, it does mean that on average people do seem to be doing quite well using these simple to understand up or down contracts.
Is There Any One Binary Trading System Better Than Others?
I hope that helps you and wish you all the best results in your binary options trading efforts in 2013!