What are binary options
Binary options are relatively new phenomenon in trading market, but more and more traders nowadays start to use them. It happens because this type of investment is less risky, but at the same time profitable and what is more important very simple to use. For a long time binary options were accessible only to banks and large financial institutions and were used only at the certain types of markets. But everything has changed since 2008 when binary options becаme available to the public and gained popularity all over the world. The main reasons of that success among traders were simplicity and high returns, all this put together made binary options the easiest method of trading, the method that doesn’t demand any special knowledge in finance from a trader.
In addition with binary options only two outcomes are possible - it means either a trader wins or losses. The success in this case is achieved by predicting the price movement. If a trader manages to predict the price correctly at the time of the contract expiry then he wins and vice versa if a trader failed to predict the price movement at the time of the contract expiry then he loses his investment
Sometimes it happens that an option’s strike price is identical to the price of the underlying asset at the time of the contract expiry in this rare case the money invested by trader is returned.
A trader can choose between a multiple amount of assets, such as stocks, currencies, commodities and indices.
Another thing that makes binary options so popular is the predetermined return of 75-85%.
In addition the expiry time of a contract can vary from 30 seconds to 1 month.
Everything put together means that at the end a trader knows in advance the return and the expiry time so he can make without any additional complications.
Another advantage is that all transactions occur through a secure online connection and traders can get started right after opening and funding their accounts.