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What is Binary Options?
Binary option is a type of trading, where there are only two options when it comes to payoff. Either you can receive a fixed monetary outcome or you would receive nothing at all. Your fixed monetary outcome could be in the form of cash or any other form of fixed asset. This is predefined before the investment in made. Simply put, binary options can be termed as the performance of underlying assets for a predefined time frame.
Understanding Binary Options Better
In binary options, you use the world “Call” or “Put” to state what you predict. If your prediction says that the value of asset will rise then the type of investment that you do is “Call”. If you predict that the asset’s value will fall then you take the “Put” option.
You need to choose the type of asset first. You can place binary investments in currencies, stocks and shares and things like gold and silver.
Binary options are different from traditional trading. In regular trading you actually purchase commodities, currencies or stocks to make the investment. But, in binary trading all you need to do is predict whether the value of the asset will appreciate or depreciate.
Things to Do in Binary Trading
Your first job is to determine the asset you would be investing in. Once you have determined the asset, you will need to evaluate the market value of the asset carefully.
Regards,
Sans.