What Are Binary Options?

What Are Binary Options? Binary option trading enables both beginner and experienced investors to make substantial returns from stock market trading. This form of investing grows in popularity by the day, as people from all around the world enjoy the benefits binary option trading has to offer. The basic idea behind binary options trading is quite simple, a prediction is made on whether the price of an underlying asset (e.g., stock, commodity, index, currency) will finish above or below a certain price known as the “Strike Price” (This is the price that an underlying assets holds at the time one commences trading), when the trade expires. If your prediction if correct you can make profits of minimum 65% up to 95% on your initial investment.

What Are Binary Options?

How do I trade binary options?

As the name Binary suggests there are only two possible outcomes, a prediction is correct or incorrect. When trading you choose to place either a “Call Option” or “Put Option” – A Call option predicts that an underlying asset will expire above the strike price, and a Put option predicts that it will expire below. With Binary options trading, the return rate on an investment is fixed. Should a trade expire one dollar or two hundred dollars above or below the Strike Price (depending on the direction selected) the payoff will be the same, it is not proportional to the price at which the option expires.

Why should I trade binary options?

Once of the many advantages of this type of stock market trading over traditional stock market trading is that trades are fast normally lasting about 10 minutes, this means you can make returns and profit in super-fast times. Another big advantage of binary option trading is that you can profit from both rising and falling markets.

What Are Binary Options?