Binary options pay either a fixed amount or nothing at an expiry point if all conditions are met. Binaries are also considered exotic options, or all-or-nothing options. You will win or be in the money if your prediction is correct, or you will lose everything. There are no surprises. All a trader needs to do is make a decision about how the rate will change. Will the underlying asset go up or down before or on the expiry time?
Binaries are one of the fastest growing trading products today. They are considered a mass market product that provides trading with flexible options and without the complexities involved in traditional trading. If you are looking for a short term speculation or trying to advance your portfolio, binaries can be perfect for that high payout you are seeking.
You can contract on a variety of assets. This includes stocks, currencies, commodities or market indices. If you predict correctly at the time of expiration, you will be in the money. However, if your prediction falls short you will lose your entire investment.
Binaries or digital options have a payoff that is based on the price of the asset when the contract expires. There is a fixed rate and the expiry time is a set time. You will know exactly what you win or lose. You make that distinction at the time of prediction. Find a platform that gives you higher returns; there are platforms that payout at 85% plus your investment. If you place a “call” of $100 that an underlying asset will raise within one hour, and you are correct; you will gain $185. A miscalculation will lose you the $100 you initially placed on the asset.
The biggest advantage of binary options is its simplicity. All you need to predict is whether the underlying asset will fall above or below the market price. There is limited risk and predetermine payouts. You will know from the beginning what your wins and losses will be. In traditional trading you have no outlined parameters and the losses or gains are not known.
No matter what the asset price is at the end of the expiration time, you will gain money if you predict a simple up or down.
Use binaries as tools to hedge your positions and portfolio. You can invest in a greater selection of short-term contracts in just about any market.
Binaries can be traded multiple times during the day. There is no limit on the amounts or number of trades you make.
Trade in binary options, on multiple time frames and trading platforms 24/7. Binaries are traded on many different universal underlying assets and from many different exchanges. You are not limited to only one commodity or stock or even currency exchange. Engage in multiple trades at one time.
Use global trends to be successful in binary options trading. Learn to watch for company announcements, current events and even the weather to quickly learn the environmental events influencing the markets. With market knowledge, you can better predict up and down movements of underlying assets and gain huge returns.