What is binary option trading?
Binary option trading is a type of fiancial instrument whereby you make predictions
about the future price of market-traded underlying assets, such as commodities,
stocks, indices, and currencies. With binary options, you are simply predicting if the
price of an asset will rise above or fall below a certain point, within a set timeframe.
Binary option trading differs from traditional trading in a number of ways, but most
notably in the following areas:
- When trading binary options you are not purchasing physical stock or ownership of a company.
- Returns are fied and pre-determined, so you know exactly how much profi you will make before
you commence trading.
- Trades are short, normally lasting from between 10 minutes to an hour, although there are also
different binary option products, such as One-Touch, that allow you to take long positions on an
underlying asset.
- With binary options you can profi regardless of whether an underlying asset is rising or falling in
price.
- With binary options there are only two possible outcomes: your prediction is either correct,
whereby you make a profi, or your prediction is incorrect whereby you lose all or most of your
initial investment.
