What are Binary Options Trading?
A Binary Option Trade is a kind of investment of cash that can return a huge amount of profit in a short period of time. This kind of investment or trade has the possibility of resulting in one outcome of two ways. The results can be either “In-The-Money” or “Out-Of-The-Money.” And these results therefore called binary and that’s why the whole system is known as Binary Trading System. This trading system is also known as Fixed Return Option (FRO) because a trader will be able to know what will be the payouts before the trade has been made.
What to do to make a Binary Option Investment?
In Binary Options Trading, the execution process of a binary option trade is quite easy rather than other trading systems. To execute a trade in Binary Options, you need to go through a simple set of processes. You can make you trade in four simple steps as follows:
- Select: In the first process, you need to select an underlying asset to make an investment.
- Predict: You have to predict the direction of the asset by researching the market trends.
- Timing: You have to choose an expiry time to close your trade.
- Investment: After choosing the expiry time of your trade, you need to take the decision how much you would invest in the particular trade.
Trading in Binary Options is much easier than the other traditional trading system like Vanilla Options. In fact, Binary Options Trading has a fixed return rate and that’s why a trader knows the returns of a successful trade before the trade is being purchased. Binary Options Brokers usually offer various returns on investment rates per option trade depending on the conditions of the trading markets and the time of purchase.