A (classic) Binary Option is a financial derivative that can refer to various underlying assets. In classic Binary Options, traders can invest in both falling or rising prices.
How to trade a (classic) “Binary Option”?
First you select an underlying asset. On our platform you will see the actual price for this asset. This changes constantly, because other market participants are buying and selling the underlying asset and the new price is steadily being applied.
You decide when the option should expire. This means you decide when the assessment of your prediction of the price rising (Call) or falling (Put) should happen.
2. Amount of Investment:
Enter the amount you are willing to invest.
3. Call or Put:
Answer the question for yourself whether you think that the price for the selected underlying asset will be higher or lower at the expiration time than it is currently. With a Call Option, you expect the price to increase and with a Put Option, you expect the price to fall.
You have determined all of the factors and can now complete your Binary Options trade order.
How is the outcome determined?
At your selected expiration time, it will be automatically checked if your prediction was correct. The actual price at the time of expiry will be taken and compared with the price of the asset when the option was opened.
A correct prediction leads to the reimbursement of your initial investment plus the agreed upon payout. An incorrect prediction leads to the loss of the initial investment. In the event that the opening and expiry prices are the same, your initial investment will be refunded.Trade Now
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