What are Binary Options?
A Binary Option is a prediction on how a certain asset value will alter in a given time
frame. In order to understand the simplistic beauty of trading Binary Options, let us
first take a look at the mechanics of how to investment in other trading markets.
In the traditional form of investments,the investor essentially purchases the
underlying asset that they have interest in. If the investor sells at a time when the
asset has increased in value, they have made a profit, adversely, if they sell when the
asset has decreased in value, they have clearly lost money.
This type of investment compels the investor to constantly worry about when to sell.
Binary Option trading is much simpler.
In Binary Options,you trade on the market, not in the market. Compared to the other
trading methods, you are not putting at risk the entirety of your capital, as you are not
buying the asset, only predicting its movement.
• Trading Binary Options using our platform is easy, quick and reliable.
In its literal translation, the word ‘binary’ is defined as ‘having two parts’. In Binary
Option trading there are only two directions for the investment. One possibility is that the
price of your asset will increase; if you do predict an increase, this type of investment is
termed a call. The other possibility is that the price of your chosen asset will decrease;
if you predict a decrease, this type of investment is termed a put. Thus, what you need
to decide as an investor is whether to call or put.
The first decision to make, in Binary Option trading, is purely what to invest in.
For instance, if you have an interest in Gold prices, you may choose to place a Binary
investment in Gold. Obviously, the more familiar you are with the Gold market, the
better your chances are of successfully predicting the fluctuations in the price of Gold.