Sorry, you need to enable JavaScript to visit this website.

What is Binary Trading?

You are here

Binary trading is a form of investment wherein a trader must correctly determine the direction of the price of underlying asset like the share of stock, foreign currency pair, and commodity. Prior to the start of the contract, the binary options trader must state whether the price of his chosen underlying asset will rise o fall in value at the end of the contract”s term. This may sound so easy to do. However, it”s not. A trader who doesn”t understand his underlying asset can lose his investment if he doesn”t take the time to understand how the price will go in the future.

Comments

riksa18's picture

I must say that Binary Option Trading is easier than forex trading, no hassle of managing stop losses and take profits. All you have to predict either the underlying asset value increases within the specific time frame or it will go down. This specific time frame is also known as expiry of contract. If the prices goes up within this specific expiry, you get money with profits otherwise loses money.

riksa18
Prime's picture

It's hard to explain within several sentences) In short, trading - is an attempt to predict the market and make money at it.

Prime
Vizory's picture

It's not that hard. If I need to explain forex to laypeople, for example, I just say it's like a currency dealer.

Vizory
Salton's picture

For me trading binary options is quite a difficult thing, which is quite difficult for me to explain... But in short, it's an attempt to forecast the market with the goal of making money at it.

Salton