Intro to Binary Options
Binary Options have been considered amongst the most popular forms of online trading in the last 5 years. If we go back to 2008 for a moment, which was the year when binary options broke all barriers and started becoming regulated, we can clearly see that binary options trading has dramatically increased, both in size, volume and overall popularity since then. But what makes it so attractive to the end-user is probably related to the fact that binary options can be traded on a large variety of underlying assets, such as commodities, indices, stocks and currencies.
The term “binary” originates from being composed of 2 possible outcomes: 0 or 1. Also being referred to as “digital options trading”, binary options were able to develop a quite simple, although unique “over the counter” transaction mechanism while speculating on the behavior of an asset that can end up being a positive or a negative one.
In other words, unlike other forms of trading, binary options is unique in the sense that the prospective investor has to only predict an “UP” or a “DOWN” direction. It’s just as simple and easy as that. Having a worldwide applicability is what makes binary options so attractive and widely accessible to traders across the globe.
What is Binary Options
Binary options present only two possible outcomes to the prospective trader: the first one is to win a predetermined amount of money, while the second is the exact opposite. Since these are the only possibilities, binary options are sometimes being referred to as “Fixed Return Options” or “All or Nothing Options”. In the event that the prediction of the direction of the asset is correct, the trade is considered to be “In-the-Money”. If the prediction ends up being incorrect, the trade is considered to be “Out-of-the-Money”.
The most important aspect in trading binary options has to do with the variety of underlying assets that are available to be traded on. They are usually divided into 4 main asset categories, which include: currencies, commodities, stocks, and indices. Since trading binary options is considered as simple, easy, always available and mostly profitable, the fact of the matter is that anyone can trade binary options, even without any previous knowledge or experience.
Due to the increased popularity binary options online trading has gained within the last couple of years, traders worldwide have the ability and accessibility to enjoy this fascinating trading activity anywhere and anytime. So sit back, relax, and learn how to enjoy it.