what is binary option trading?

There are two types of binary options.

The first type us the one you usually see advertised. The are only available from companies that are not allowed in the United States or (other countries with strong financial regulations) because they are at best, gambling and at worst complete scams.

With these companies open an account and send the company money. You then bet if a specific security will be above or below a certain price at a specified time in the future. if you win the bet the company (if it is honest) will pay you a set amount for every dollar you bet, such as 75 cents. If you lose the bet, you lose all the money you bet. The company determines when what the payout will be and the bet is settled. These binary options usually are very short-term, often settled in less than a day.

The second type of binary options are traded on an exchange. These are not scams, but are still high risk investments, You can, if authorized, buy or sell these options through the same brokerage you use for stock investments, You buy or sell these options from other traders so he price is determined by same auction process used to buy or sell stocks. You still bet if the price of a security will be above or below a certain value at a fixed time in the future. You can either buy or sell these options. If you buy them you will still lose the entire amount you bet if you bet wrong. If you buy them and are right you will be paid a fixed amount, for example a dollar a share. If you sell the option and lose your bet you have to pay the fixed amount. If you bet right you keep the amount the buyer paid you when you sold the option, You also may close a position before expiration by making another trade at the market price. These options usually do not expire until days, weeks or months after they are first issued.

Binary options are a SCAM. It's just online betting at such terrible odds that you cannot win.

Please read the US regulatory warning link below.

Binary options trading was launched in 2008, some traders can consider it as Forex trading but binary options generate much more benefits from my point of view. The term binary is derived from binary coding where there are only two characters that is 1 or 0. It means that in this type of trading there are only two possible outcomes, either you win money or you lose.

Binary options trading consist of observing the price fluctuations of assets and hence make a prediction on the direction the price will take. Traders don't have to purchase any assets as such this is why this type of trading is very popular. It is easy to understand and it is not time consuming. Besides, there are a wide variety of assets such as commodities, stocks, currencies and indices. I recommend you to carry out some research on the different types of assets before choosing on which one to invest.

I would like to add that there are a huge amount of trading platforms available all over the internet. Unfortunately some are just scams so you better take care while you are thinking of investing.

A Binary Option is economic instrument with a set cost and with a pre-determined potential payout. The buyer of your Binary option will make a prediction as to where the price of the advantage goes property should go at the time of purchase. If the forecast turns out to be correct, they will make money, but if they turn out to be wrong they risk only
the expense of the binary option.

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This website may help you

If binary options are a scam as Jerry seems intent on pursuing, then why are they legally offered in the US with CFTC regulation? Nadex and the Cantor Exchange both offer binary options legally and in a regulated manner. Now the NYSE is offering binary options called ByRDs.

To understand the beauty of binary options trading, let's first take a look at how investment in other trading markets usually works. In most forms of investment the investors actually purchases the asset they invest in and the value of the profit and loss is determined upon the changing value of the asset.