In simple terms, when a trader alludes to the fact that he or she is trading in risk assets, it means that the assets do not have definite returns in future. Such assets have returns that differ highly over time. The market conditions and dynamics highly affect the prices of risky assets. As a rule of the thumb, when IQ Option talks of risky assets, a South African trader should understand that as those securities and shares whose prices vary in a highly volatile manner. Moreover, the rate of return on the risky assets is usually greater than the rate of interest on the assets that are termed as safe. The high rate of return is deemed to be a compensation to the trader who dared to invest in such a risky venture. When it comes to stocks, the returns are variable dividends. In some other assets, the returns that a trader in South Africa expects are dependent on the assets’ price.
Binary Options and Risk Assets enable traders to buy an option, which is purely based on a fundamental asset the risk asset- and make high returns on the same. According to the data provided by IQ Option, binary options garner a return on investment of over 80% if at all the risk asset moves towards the correct direction. The extent to which the risk asset moves does not matter as long as the move in price is in the direction anticipated. South African traders now know the amount of return to expect if at all the underlying asset was right and the price was rightly set.