What are Binary Options?

What are Binary Options? Binary trading is the latest financial tool to trade assets and allows traders of all backgrounds to trade in the markets with minimal risk. In trading binary options, you’re predicting whether an asset class will be above or below a certain price at a certain time. People of all backgrounds from all countries are signing up every day to become binary options traders because of the ease and profitability of trading. Many traders love the quick nature of binary trading, that within just a few minutes you can earn up to 95% of your original investment, which is unheard of in other areas of the global financial markets.

Binary trading is often referred to as “yes or no” investments. If you think an asset will be above a set price, you’re predicting “yes” and buying the binary option. If you think an asset class will fall below a set price, you’re predicting “no” and selling the binary option.

There’s a low barrier to entry. The minimum deposit starts at 5$! A binary option contract won’t cost big money because you can start from just 1$. You’re not buying the underlying investment or even the option to buy the underlying investment. You’re simply placing a bet on how that investment’s price will move – up or down.

Free and unlimited demo accounts are also available on many binary options broker’s websites. Demo accounts do not require a deposit. You can use a demo account to familiarize yourself with binary options trading methods and strategies. Use your demo account until you are ready to start trading real money.