Binary options are becoming more and more popular everyday because of their simplicity, and their ability to allow traders to earn high fixed rates of return with investments that have very short term periods.
Similar to other forms of trading, binary options offer options for assets in many of the same categories like the Dow Jones Industrial Average and other indices, currencies like the Euro Dollar, gold and other commodities, and FOREX exchange.
Quite simply, all an investor has to do is predict whether the price of an asset is going to go up or down. After doing so, he or she can then choose to buy an option according to that prediction. If he or she thinks the price of an asset is going to go up, he or she would buy a Call Option. If he or she thinks the price of an asset is going to go down, he or she would buy a Put Option. Every option has an expiry time in its contract in which a Call or Put price movement must be within. Expiry times are normally 1 day or less.
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