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What Are Binary Options?

What Are Binary Options?Binary Options are the newest investment vehicle in the financial market. They are a simple low risk investment vehicle, where the trader simply determines if the price of an asset will rise or fall in a set period of time such as one hour.

There are numerous ways to invest in a wide array of assets. You can purchase Gold and own it and put it in your safe deposit box, you can also invest in Gold through the commodities market where you secure the rights to buy or sell Gold at a specified prices (these rights are offered within a certain time period). These contracts are standardized so that all buyers and sellers are securing the rights to the exact same asset so that they are easily bought and sold. Since the investor is not taking actual delivery of the physical asset these can be secured with a minimum deposit but they have the risk of the entire contract value.

Lastly you have Binary Options, which are like renting assets for a short period of time, they are less complicated and a trader only needs to invest a small amount with no hidden risks and limited experience and knowledge necessary. Binary Options are also known as fixed return options as your profit or pay-out is fixed before you make your investment, so you are not concerned with how far an asset moves and only that it moves in the direction you predicted.

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