What are Binary Options?

T he rise of fixed-returns options in the last couple of years has been more than remarkable. As a result, binary options trading has become a popular investment arena. Traders are interested in learning and understanding binary options trading before they start trading. So, what are binary options? Basically, binary options trading involves making predictions whether commodities, stocks, indices or currencies will go up or down. Binary trading options: Key features In addition to knowing what are binary options, also understand the key features in order to develop a customized approach. Fixed payout A payout is a return on your initial investment. All payouts are fixed and known to the trader before a trade. A fixed payout means that it doesn’t matter whether the change in price skyrocketed up or crashed down by a certain figure. Instead, fixed payout simply relies on high/low movement. Expiry time Expiration time is the time limit set between entering a trade to the time it closes. The expiry time can range from 30 seconds to several weeks. When trading binary options, the are only to two possible outcomes, a win or a lose. If your trade is successful, the payout ranges from 70%-80% of your trade investment. On the other hand, an unsuccessful trade will cost you 100% of your investment. Therefore, before trading, perform the necessary due diligence when researching what binary options are.