What Are Binary Options?
What Are Binary Options? Binary options trading requires the trader to speculate on whether the price of an asset (a product traded on the financial markets, e.g. Facebook stock or the euro) will rise or fall (up or down) within a given time frame (30 seconds up to months). Basically, the trader asks a very simple question: Up, or down? There are only two possible outcomes with binary options – either you predict correctly and win, or you lose.
What Are Binary Options? Advantages of Trading Binary Options
Some of the advantages of binary options include:
• Fast Trading – you just need to decide if the asset will close below or above the initial price
• Binary options are straightforward and easy to understand
• There is a predetermined risk
• Binary options offer a simple way to hedge your portfolio
• Payout is fixed depending on whether the trade finishes in or out of the money, allowing traders to manage and monitor their risk in a transparent manner
• Binary options can be a very effective tool to hedge any current positions
• Binary options are issued 24 hours a day, 7 days a week which allows investors to trade on a variety of different time frames. Binary options are available on many global underlying assets from many different exchanges.
Binary options trading is incredibly fast-paced. No download is required, so set-up is quick.
Making a trade
The process of making a trade is also very brief, while offering high payouts in a short time span. Trades can be made with a wide range of expiration times, such as daily or hourly. And traders who prefer the adrenaline rush of a lightning fast trade can opt for minute-long trades, that from start to finish, last only 30 seconds.
What Are Binary Options?
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- Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, and b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.
- Binary options are prohibited in EEA
- Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions
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