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Binary Options Trading

Binary – Options Trading

Binary options are contracts giving traders the right to buy or sell a specified amount of an instrument, at a certain price on a pre-defined time. When trading Binary options, the trader has the power to control not only the instrument and the amount he trades, but also when and at what price. Options can be traded for a day, a week, a few months or even a year. Trading options is a mystery for many people. Many would choose trading spot over options, but once getting into the options – traders get hooked. The variety of choices, with the ability to control all aspects of a trade, properly balancing risks and rewards, welcomes traders to an exciting world where all options are open.

Key Binary Options Terminology

There are some unique terms in the Binary options trading world, and one must know them before starting to trade. There are two types of options:

  • Call options, which give the buyer the right to buy an instrument at a specified price. Call options are more typically bought by traders who believe the market is on the rise, known as bull traders.
  • Put options, which give the buyer the right to sell the instrument at a specified price.  On the other hand, put options are bought by traders speculating the market will go down, or bear traders.