What is binary option?

What is the first thing that comes to your mind when you hear the word “trading”? – It’s probably numbers, constantly changing indices, quotes and profit which is extremely hard to calculate. Another word for it is “complex”. And it was, until binary options came to market. You don’t have to be an expert in economics to trade profitably in binary options. As it is a form of investing, it is obviously still not a piece of cake – you’ll need to spend some time learning how it works and how to make accurate predictions in order to be able to make substantial profit. However, the process itself is much easier than, let’s say, Forex.

Most forms of trading imply that an investor is actually buying an asset and his profits or losses depend on the changing value of the asset over various periods of time. In Binary Options, on the other hand, no real product is bought. Basics of binary options are fairly simple: based on market tendencies and some other factors, a trader makes prediction about movement of prices of various assets, which most commonly are currency pairs, precious metals and stock.