It might sound strange if you see these two words for the first time. Firsly, let’s look at what they mean. Binary means dual, double, duplex, the word options means choice, possible alternatives. In the financial world, when you invest, with the help of binary options, into one of our merchandises, you lay the odds onto the expected way of a stock, instrument or a foreign currency.

This device of marketing was first legalized in 2008 in the US and it has spread all over the world since then. The binary option is a way of marketing, in which we must predict the way of exchange rate for the next 5, 10, 20,30, 60 minutes with the help of the financial market trend or chart. We can control the perid of time. If we predicted right then after the period we get a pre-fixed amount. If we predicted a wrong direction, then we lose our fund and get back nothing, however we have the opportunity to stop the option any time.

The binary option is a prediction about the movement of the worth of a stock, a raw material. index or currency pair in a certain period of time.

Simplistically: Determine for instance, that in the next hour the exchange rate of the EUR/USD currency pair will move UP or DOWN.

In the financial market when you invest through binary options, you invest into the expected movement of the worth of stock, a device, ware, or a foreign currency. There are many other names for binary options, including „all or nothing” options and the „digital options”. Every name refers to the „basic concept” of the binary options which is the obvious yes/no choice with a pre-fixed percentage payment.

Every single transaction on binary options have a fixed expiration date. When this date is reached the option is closed in one way out of three:

SUCCESFUL: The option went to the predicted way.

UNSUCCESFUL: The option went the opposite way as predicted.

NEUTRAL: The option closes with the same value, so its worth didn’t change.