Today, an increasing number of people around the world are trading in binary options, trying to capitalize on the high return on investment that this straightforward concept provides. The good news is that you need zero trading experience as all you have to do is speculate whether the asset will go up or down, placing a call or a put option in your trade, depending on the direction of the market.
What are binary options?
Binary options are investment vehicles that allow you to trade on price fluctuations of underlying assets and basically predict whether the asset’s price will rise or fall within a specific time frame. Although they provide access to stocks, indices, commodities and foreign exchange like traditional options, binaries differ in their liquidity structure and investment process. When investing in binary options you take into consideration the direction of the market and you predict whether the option will rise or fall up to the expiration date. If at expiry, your prediction in on the right side of the strike price, i.e. the price that you can exercise your option, you get a fixed payoff. If at expiry, your prediction is wrong, you lose your initial investment.