When trading binary options you simply predict if the asset’s value is going to rise or fall by the expiry time which is set in advance, from five minutes, one day, up to months. The payout occurs immediately upon the expiry and the payout is fixed, so traders know exactly how much they can make.
There are only two possible outcomes with binary options, also known as Digital or Fixed Rate Options (FROs). The payout is fixed at the time of beginning of the trade. With binary option, the trader knows in advance, and can control, the exact level of risk involved. The difficult complications involved in other methods of market speculations are removed, such as with traditional trading you must constantly monitor the asset to decide when to sell, the value of your shares can decrease rapidly, you have to worry about the complicated stop loss orders and you can lose far more than your stakes. With binary options the moment you place your order, you know exactly how much you stand to gain or lose so that your risk is specifically limited. The trader is given the option to select the risk percentages for every trade with a potential 85% return on an in-the-money outcome.
Binary options traders can pick from a range of over 100 assets when deciding what to trade, including currencies, commodities, stocks and indices. Multiple trades can be open at the same time, each for different type of asset, or the trader can choose to focus on a single trading asset. Binary options trading is incredibly fast paced and exciting. No download is required, so set-up is quick and easy and traders can trade wherever they have a Broadband internet connection.
Binary options trading is incredibly simple, which is why it has become so popular over the last few years. If you think that the underlying asset is going to go up in value during the set time frame allotted for the trade then all a trader needs to do is choose the green CALL button. However, if you think that its value will drop over the given, then all the trader needs to do is choose the red PUT button. If the prediction is correct, then you are considered ‘in-the-money’, upon expiry, and if your prediction is incorrect then it expired ‘out-the-money’.
Binary Options offers high payouts in a short period of time. Trades can be made with a wide range of expiration times. Traders can opt for daily, hourly, 15 minutes and even 60 seconds expires. There are also long term trades that can expire weekly, monthly and even at the end of the year.