Binary options are a simple way to trade price fluctuations in multiple global markets. Binary options are different from traditional options. If traded, one will find these options have different payouts.
In finance, a binary option is a type of option where the payoff is either some fixed amount of some assets or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option . The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes.

When buying a binary option, the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”/“Up” option or a “Put”/“Down” option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e.g. 30 seconds and up to 30 minutes, an hour ahead or to the close of the trading day. TO BE CONTINUE......

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