What do You Mean by Binary Options and What are the Advantages?

Is the term binary option new for you? If yes, then following few lines will list information about it. They are financial trading products that deliver fixed return on each trade executed.

Binary options are also termed as digital options. They are simple and offer certainty to the traders. This is the primary reason behind the popularity of this trading option. Due to its popularity, it has now become one of the quickest trading products across the financial world.

Before any purchase is done, the return is certain and is known by the investor. Such options are bought through both call/up options and even by Put/down options. Take a look:

• A call/up option gives its owner a profit when the asset purchased surges in value compared to when it was purchased. When the asset expires at the same price then the complete initial investment is returned to the investor.
• A put/down option gives a profit to its owner when the asset is declined in its value compared to the price at which it was purchased. When the asset expires at the similar price at which it was purchased then the complete initial amount is returned to the investor.

All the investors can invest for long as well as for short duration. These digital options are offered with a fixed expiry time like 5 to 30 minutes in the future or at the closing of the trading day. Before the expiry date is reached, the binary options cannot be used to resell. 

The merits of using binary options include:

• Lesser amount of risk since the person doesn’t lose more money than what he or she has invested
• People get higher returns irrespective of them trading in one touch options or in standard options,
• Predefined payouts wherein the returns are known to the investor in advance
• Quick returns where in many binary options brokers provide options of 60 seconds trade along with hourly and 15 minute trades so that quick profits can be achieved.
• New traders find the option of trading easy to understand.
• There is a wide range of popular assets available like currencies, commodities, stocks and main Indices when trading binary options.

Binary options are present across the world since a long time now but have reached heights in popularity only recently. It is highly recommended to use such options as they are safe and provide assured returns. They are the best bet in financial markets around the globe.