In their simplest form, binary options can go only one of two directions, hence their name. You can be right or you can be wrong. They are an all or nothing type of trade and there is no middle ground. This might sound threatening, but they really are quite easy to understand. You select an asset and then predict whether you think that asset will go up or down in price. Once you figure this out, the broker that you are working with will display the percentage amount that you will have returned to you prior to officially committing your money to the trade. You then select the amount that you want to risk and the timeframe which you want to work within. Once these basic factors are all accounted for, you will click on the button that executes the trade.


This is one of the greatest things about binary options. You have more information about how the trade will conclude with this type of trading than with any other type of trading. You know exactly how much you stand to gain and exactly at what time that money will appear in your account if you are correct in your prediction. Binaries explain all of these things prior to your commitment.