In binary option the buyer makes investment and receive a large payment of money or loss on their investment. It is considered as a financial tool in which the payoff amount might be fixed or not at all. It allows you to predict future price of a certain stock with the particular expiry date. The result of binary options depend on whether yes or no. In order to make a profit from trader point of view at the expiry date given strike price must be correct. Strike price is the price at which any contract is brought or sold. In other words we can save in binary option an individual products either the share price of certain asset will be increased or decreased within given time period.
Simple example of binary option:
From trading point of view let’s take an example of a trader who bet amount on certain asset and predict that the trading price would be more than $5. If the share price of certain asset would be higher than $5 the trader will receive agreed amount of payment. But in vise versa situation, if the share price of certain asset would be lower than $5 the investor have to bear loss.
Brief introduction to the binary trading:
One of the type of investment in trading is known as binary trading in which the trader would get a payoff or loss. The investor have to choose between two probabilities yes or no within the given time period. It helps the beginner trader to evaluate and get enough knowledge of market and market share to make profit. For further trading information and recommendation there are different binary options signals who gives best recommendation regards investment in order to generate more profit out of binary option.
