The question whether is binary options trading profitable comes up quite a bit with visitors to this site. As with any risky investment the answer for any individual would have to be it depends on how good you are at it – but let’s look at some anecdotal evidence as to whether at least some traders have success at it.
Anecdotal Evidence as to Whether Binary Options Trading Is Profitable
One of the most obvious ways to tell if an endeavor is successful is to see how many people have questions about reporting earnings as taxable income. It would stand to reason that if a lot of people are asking whether earnings are taxable then a lot of people have earnings about which they are concerned about taxes. Earnings is another word for profits in day trading parlance.
I suppose the next logical question might be something along the lines of how many visitors to the site ask whether or not binary options profits are taxable. To which I can answer: approximately 1-2 people per day come looking to this site trying to determine the taxability of binary options profits. While we can’t possibly accurately answer the question for every individual’s circumstances we typically direct them to IRS Publication 550 as being the best source for US traders. I have absolutely no familiarity with the tax law of other countries and obviously am not qualified to speak to that subject so I don’t. The takeaway however is that people come to this site every day with questions about profits. That should be a clue as to whether people can make money trading digital contracts – although that isn’t an entirely proven answer. Ultimately full proof has to come from at least some form of numbers and analysis.
(sic) The ratio of trading volume to deposits stands at 19:1 – paraphrased results from analysis at make300aday.com
Trading Analysis of Contract Volume Activity
One of the really nice features of binary options contracts is that they are bought in sold in dollars – making it very easy to discern the actual dollar volume put at risk in the market on any given day – provided you have access to that data. While not all data is available, at least some data on binary options trading volume is. We’ve been watching these reports for a couple of weeks now and have seen consistent data suggesting that at least some traders are having a considerable amount of success in the market. We can’t comment on what strategies they may be using but the evidence is undeniable: Traders who are executing a high volume of dollar contracts without the need to add deposits to their accounts are creating trade volume out of profits. You could also read that as: yes, there is undeniable evidence that at least some traders are making money trading this way. That doesn’t mean everyone is doing as well – but clearly some are doing very well indeed.