Determining the Price Movement of the Underlying Asset

Known in many names like all-or-nothing options, fixed return options, and digital options, binary trading only has results. The price of the underlying asset can either go or down. A trader can buy an Up/”Call” option if he thinks the price of his chosen asset will go up. He buys a Down/”Put” option if he thinks the price of the asset will go down. Compared to other investments, the binary options contract is relatively short. It usually ends within casino spiel the trading day.  It can even be as short as 30 seconds. When the contract expires, the trader can claim his return on investment if he”s right. If he”s wrong, he loses his money. The payout is often known before the contract is agreed by both parties.

The Binary Options Business Model

First offered in 2008, there are now some websites offering binary options trading platforms. Issuers of binary options don”t charge fees. They make money through those options which expire out of the money after deducting payouts of options which expire in the money.