What are Binary Options
In simple terms Binary Options trading is a prediction on the price movement of a trading asset. You decide whether the price of an asset will be higher or lower after a given time frame. If after the time expires you were right then you win the trade. This is why they are called BINARY. There are two possible results. Either you win or lose.
Binary Options can be traded on web based trading platforms throughout the world. There are many Binary Options brokers to choose from. The following are the range of assets, investment returns and expiration times that are offered depending on which broker you choose.
- Trading Assets: Stocks, Currency Pairs, Commodities, Indicies
- Investment Return: 65-95%
- Expiration Times: 1 Minute – End of Day
There are different types of trading features as well such as One Touch and Range Binary Options that are offered by different brokers.
How To Trade Binary Options
A standard Binary Options trade is simple to execute in 4 easy Steps.
1) Select Asset
2) Select Expiration
3) Select Direction
4) Select Investment Amount
Execute the trade by clicking Submit and wait for the trade to expire. In the above example if the EUR/USD currency pair is above 1.33091 when the trade expires you would profit 80%. If the asset is below the target price at expiration you would lose your investment.