What are Binary Options?

What are Binary Options?

Binary Options are a simple way of trading on financial markets. It is a fair way of trading making it very popular among traders. You know the clearly determined amount in advance, and how much you can make or lose.

A Binary Option is in essence nothing more than a prediction of which way the price of a stock, commodity, index or currency will move by a designated expiry time. With Binary Options, a trader never purchases or owns the asset – he is only predicting the direction that the asset will go. There are only two possible outcomes, up or down, and the price of the asset does not matter. For example, if the price of gold is currently 1500, will it rise or fall by 5:00 PM today? As far as a trader is concerned, all that matters is if his prediction was correct or incorrect. Binary Options are the simplest way to trade on the market.

You do not need huge amounts of money to profit big. Every trade that expires in-the-money will give you an immediate profit of up to 95% return on successful investment. Investments can be as little as $1, allowing traders to be exposed to minimum risk but maximum profit.

Nearly every type of underlying asset can be traded on a Binary Option platform including:

  • Stocks
  • Indices
  • Commodities
  • Currency Pairs

Who make a trade? The investor simply selects the asset they want to trade, the direction the asset will move, then selects the expiry time of the option, and finally enters in the invest amount. When the expiry time ends depending on the outcome of the trade the trader will either land ‘In or Out of the Money’.

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One Response to “What are Binary Options?”

  1. Informative and entertaining as ever. Many thanks.

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