It is human nature to try to make the most of our assets, including our financial assets. Apart from those people who have no ambition and throw away their money, the majority look for ways to increase the amount they have. They look to the future, and try to build enough resources to let them see out their retirement in a financially stable way.
Binary options trading have emerged as a profitable as well as an entertaining mode of trading in today’s world. The reason why it has become so popular is the fact that with only a small investment, it can make a trader gain substantial profits. Binary option trading is a contract that only has two outcomes, either win or lose. People are extensively choosing this mode of trading as there are not many barriers for entry into it. It can even let you start trading with only $100.
Binary options are fixed return options because they come with only 2 possible outcomes. It is a contract which gives the buyer a right to buy an underlying asset at a predecided fixed price within a specified time limit. The security that is being traded is known as the underlying asset and can include commodities (e.g. gold, silver, nickel, lead, and oil), currencies (USD/JPY), stocks (e.g. Apple, Microsoft, IBM) or stock indices. The price at which owner buys or sells is known as the strike price.