Binary Options Guide

What is a binary option? This is a type of fixed return option with only 2 possible outcomes, and all aspects involved are fully determined by the buyer before placing the contract. With this option, the buyer enters to a binary options contract that gives the owner the right but not the obligation, to buy an underlying asset at a fixed price within a selected time frame.

Buyer can find this type of investment in the internet; many Companies that serve this particular investment have online platforms. In most cases, buyer doesn’t have to download any software to start the option and buyer doesn’t even need any broad experience either to start the option. This also means that anyone can start trading right away.

Binary Options - How It Works. After carefully choosing the company, buyer has to open an account, deposit money and follow simple steps:
- Select the asset or currency pair that will be traded on e.g. USD/EUR, EUR/JPY.
- Decide the investment amount for the selected binary option.
- Make a decision whether the asset’s price is going to increase or decrease. Select a CALL option if you expected the price to be increased, select a PUT option if you expected the asset’s price to be decreased.
- Decide an expiry time; it could be end of the hour, day, week or even month.

A buyer needs to wait until the expiry time and when it reaches the expire time there are only two possible outcomes, profit or loss. If you decided a CALL option and at the expiry time the asset’s price increase buyer makes profit, buyer doesn’t make any profit if the other way round took place.

Among buyers, here are several reasons that make binary options trading is growing in popularity:
- To make a binary options contract, buyer only needs to select the asset, expiry time and price direction, and then wait.
- The risk concerned is fully controlled, as all aspects involved have been decided in advance by the binary options buyer.
- There are only two possible outcomes; an incremental change in asset price means profit for the buyer, and the other way round means no profit.
- Steps involved are simple; a buyer does not need broad knowledge of the binary options market in which buyer is trading, what buyer needs is logic of direction of the selected asset.

Internet is a great source when it comes to binary options trading information, you can search this topic all over the internet, what you need to do is going through all the pages or simply hit the contact us - binary options button at the respective website.