What are binary options?
Binary options are estimates of underlying assets performance during any given time frame.
Traditionally, investors would purchase an asset and the value of profit and loss is determined upon the fluctuation in the value of the asset. If they buy for £1 a share and the value increases to £1.10, the investor makes a profit. Binary options is a form of trading based on the market, not in it. The word (binary) itself stands for ‘having two parts’. All you need to do, in simple terms, is bet predict ‘Call’ or ‘Put’.
One invest possibility, known as ‘Call’, is predicting that the price of the given asset will rise.
The other is ‘Put’, predicting the price of the given asset will fall.
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*the variety of binary contracts that can be traded is dependent on the platform you choose to trade with.