What are Binary Options
The word “Binary” means “having two parts”. So generally speaking , all you need to do is predict either “ Call “or “ Put “. Binary Option trading has only two investment possibilities for you to predict and choose between. One possibility is when you predict that the price of an asset will rise, this type of investment is called ” Call ” option, and the other possibility is when you predict that the price of an asset will fall, this investment is called ” Put ” option.
For instance, if you have an interest in gold prices, you may choose to place a binary investment in gold. Obviously, the more familiar you are with the gold market the better your chances are of successfully predicting the fluctuations of gold prices.
So, for example if you chose gold as the asset to trade and you predict the price will rise, you would simply follow these easy steps,
- Press the CALL button on your trading platform. (some platforms will also get you to confirm the trade by pushing the Confirm button as well ). And obviously if you think the price is going to fall you would push the PUT button.
- Wait for you trade to expire.
If your trade was successful, you will win back your initial investment plus the broker’s percentage payout. i.e. A$10.00 investment with an 82% payout would see an $18.20 return into your account. ( Payout percentages will vary from broker to broker ).
If you loose the trade, you loose your initial investment, $10.00 ( as in the example above ).