What are Binary Options?

Binary Options are a fairly new type of online trading investment. These are a risky choice, but options do offer higher returns than a traditional stock investment. The process of trading stock options is very simple and it involves a short term contract with a broker. With binary options, traders predict whether the value of an asset will rise or fall. If investors can predict the rise and fall of asset values well, they can earn high returns.

The major advantage of trading options is the simplicity of the process. You are placing a short term bet on the price movement of an instrument like a stock over a short amount of time. Since there are only two possible outcomes – a bet that either produces a fixed profit at expiration or nothing at all. When a binary option is purchased, the buyer owns a contract that gives them the right to buy an asset at a fixed price within a fixed amount of time. The buyer has to hold the contract to expiration, which is very different from a traditional option.

Are Binary Options Worth a try?

The benefits of trading binary options are:

  • Greater risk/reward ratio and return on investment.
  • The pay-out can be as high as 95% on each trade.
  • Your losses can never be more than the investment.
  • Only a small capital is needed, Open an account with as little as $100.
  • Transparent investment , the profit potential and risk involved are made clear prior to making a trade.
  • There is no leverage, margin, commission or spread.