Binary Options Guide
Binary Options Explained | Ideas for One Trade a Day
What are Binary Options exactly? - we explain what they are and how you can trade them in our Binary Options School. And we'll share some of our daily trading ideas along the way. We also compare and review binary options brokers to help you find the best platform to trade on.
A binary option is a financial tool that allows you to take a position in the financial markets. Tead our Top 10 Binary Options Tips. It allows you to "bet" whether the market price of a financial asset (such as a currency pair like EURUSD or a precious metal like gold) will rise or fall within a certain time period. The time period might be as short as a minute, or it might be several days- the choice is yours. A Call Option pays when the market's going up, and a Put Option pays when it's going down.
Binary Options trading is an easy concept to understand, since the whole process can be simplified down to 3 factors- the type of asset (eg forex, metals, stocks etc), the direction of the price movement, and the time span. And it's for this reason, that binary options have become increasingly popular in recent years due to their ease of trading. There are no margin requirements, and no leverage to worry about, just a finite cost of the trade which makes it simpler for traders to understand the risk and the benefits of each individual trade. You'll never lose more than your initial investment (unlike with forex, spread betting and CFD trading). And you know upfront what your profit will be if you are "in the money".
Use this site to gain a thorough understanding of binary options vs regular options, how binary options trading differs from spread betting and other useful tips.