Binary options are a simple and rewarding financial trading product. Binary options deliver a fixed return on every trade which is made, depending on whether the trade was “In The Money”, “Out Of The Money” or a “Tie”. Binary options – which are also referred to as digital options – are one of the fastest growing financial trading products in the world because their simplicity, together with the certainty which they offer on every trade, makes them an attractive trading tool for many financial investors.
When buying a binary option the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”/“Up” option or a “Put”/“Down” option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e.g. 5-30 minutes in the future, an hour ahead or at the close of the trading day. Binary options once bought cannot be resold before the expiry time is reached.
Assets are any tradeble products which a financial market can be based upon. The most common assets which are traded through financial markets are commodities (e.g. gold, oil, platinum), stocks (e.g. Microsoft, Nike, Citi, Coca Cola), currency pairs (e.g. euro-dollar, dollar-yen), stock indices (e.g. NASDAQ, Dow Jones, FTSE) and bonds.
In binary options trading, investors buy options on individual assets on a fixed expiry time in order to try and benefit from the price changes which are occurring within the underlying asset.
Binary Options have many advantages including:
- Predefined Payout – the returns are known in advance
- Limited Risk -You cannot lose more than you invested
- High Returns – It is possible to earn returns of up to 95% on Standard Options and 500% on One Touch Options
- Fast Returns – many brokers now offer 60 second trades together with 15 minute and hourly trades so fast profits can be earned on trending markets
- Novice Trader Friendly – Binary Options Trading is easy for new traders to understand and most platforms are highly user friendly. Simply pick an asset, make your prediction and choose how much to invest
- Wide Range of Popular Assets – including the main Indices, Currencies, Stocks and Commodities