What Are Binary Options?

What are binary options

Just what are binary options?

They are the latest and most profitable financial instrument to conquer the global markets in the past few years. Traders around the globe are using binary options to add liquidity to their portfolios safely and with minimal risk.

What is binary option trading?

Binary options combine the analytical aspects of day trading with the lucrative features of traditional options trading allowing traders to maximize profits while minimally investing their time and capital. Quite simply, a binary option is a financial tool that allows you to predict if the market price of an asset will rise or fall within a certain time period. The period of expiry can range from one minute to a number of days, depending on your choice.

Binary options trading – Is it easy?

One of the primary reasons for the proliferation of binary options is the ease with which anyone can trade them. Because of the essential choice between yes or no, the systems used to trade binary options are designed to make the trading process as simple as possible.
When you trade binary options, there are three essential steps taken, that’s it! Simply decide on an asset, then decide on the direction of the market price, and finally enter the amount you wish to trade, that’s it!

Can I profit with binary options?

That depends – have you checked the news in the last week? Do you know about the latest economic news? Due to their simple nature, binary options are very reactive to news reports and market fluctuations. It is this tendency which makes them very profitable. Do you think Facebook will reach $50/share in the next 15 minutes? If your forecast is correct, you can earn up to 89% return on your investment.

The profit potential of binary options is another main reason for the explosion in popularity of these unique financial instruments.

The term ‘Binary Option’ – where does it come from?

Binary options get their name based on the two possible results of your investment: either your prediction is correct or it is not. Other names are sometimes used around the industry such as Fixed Return Options (FRO) or Digital Options (DO); both terms are used interchangeably for binary options. These terms are generally used when the speaker wishes to point to the static or online nature of binary options respectively.

How do I trade binary options?

Trading binary options is simple, quick, and profitable. Registering for an account with 24Option is free and takes less than one minute!

Since binary options are based upon a prediction of an asset’s market price it is a good idea to familiarize yourself with at least one asset so that you feel comfortable making a prediction on its future market price.
Once you are familiar with an asset, all you need to do is choose that asset on the 24Option platform and decide in which direction you think the market price will go: up or down. After you have made your prediction, enter the amount you want to trade. Once you enter the amount you wish to trade (but before you confirm the trade) the exact return on the binary option will be provided. This aspect of binary option trading is very attractive to all types of traders since you know in advance exactly how much you can earn from every trade. You no longer need to guess how much you will earn from your trades. You control exactly how much you invest and how much you can earn. Once you’ve decided how much you want to trade, simply click the ‘Buy’ button and you’ve invested in a binary option! Check the How to Trade Binary Options page for more useful tips and information.

Why are traders flocking?

Binary options have exploded in popularity because of the ease of trading binary combined with the comfort that traders receive by knowing the exact results of a successful trade. That knowledge allows for precise money management of your trading portfolio.

Traders love binary option trading because they are so profitable and easy to trade. Gone are the complicated systems of stock or commodity trading. Instead they have been replaced with the simplicity of binary option trading: just click and invest! From the comfort of your home or through your mobile phone, binary option trading is simple, quick and very lucrative.