What are binary options?

What are binary options?

Binary options are investment products with only two possible outcomes: profit or loss. This is why they are called binary options. When trading binary options through an option broker option the possible profit or loss is already known beforehand. A fixed percentage on top of your deposit if your trade is successful, and if you’re wrong, you lose your deposit.

Binary options are valid for short periods and have expiration date somewhere in the near future. This could be within a minute (60 second trading), (half) hour, quarter hour, day or week after purchase.

Trading in binary options on the Internet can be done through many brokers. Most brokers even offer a “welcome bonus” in the form of a free starting capital, risk free trades, or deposit bonuses. In the table below the most popular binary options brokers are visible. With these brokers you can trade binary options on Smartphone, tablet and PC.

Visit our “options” page for more information about options and binary options.

Continue reading: Lesson 6: What is leverage?