The Disadvantages of Binary Option Trading – Lesson 5

Although binary options have their respective advantages, they are not without any cons. The following below are some of the considerations that investors need to bear in mind before venturing into binary option trading.

  • High “Spread”

Binary options are in fact some of the most expensive financial instruments around in the market for retail investors. In some cases, the bid /ask spread can be as high as 40% for some underlying assets. The effect of this is that you have to be in the money most of the time in order to offset the high spread before you can return a profit overall.

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