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What Is Binary Options Trading?

Trading In Binary OptionsBinary Options trading is based on a simple trading method known as the Up-Down Trade. An investor simply selects an asset and predicts if the price of that asset will go up or down within a chosen expiry time, usually within one hour.

Binary Options trading is based on determining if an asset such as Gold or the Euro has the momentum to continue in the chosen direction until the expiry of the trading period. Most Binary Options trading is done in the next expiry period which is usually under one hour, but a trader can choose a longer expiry time depending on their trading strategy. All the other methods of trading Binary Options are based on the Up-Down method. You select an asset, determine if it is going to move up or down and decide if this will happen now or later. Then you determine your investment amount. The profit will be clearly displayed on the trading screen. There is no margin or leverage involved in Binary Options.

On most platforms you can enter a trade from $10 to $5000 and the pay-out or profits vary with an average of about 75-80%. With Binary Options trading all your decisions are made up front. There are various methods which include long term trading and 60 second trading. These are all based on the Up-Down method with some modification to fit different investment styles.

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