The growth of the online trading industry has been very fast and in this battleground, it is the fearless investors making more money through online trading. From reviews of the experience users, new investors understand the benefits of online trading and invest more money in this trading option. Binary option is one of the online trading methods. It is a financial instrument which provides an option to the trader to purchase a product with fixed pay-out based on how the traded understands the movement of the price of an underlying asset. The profit of binary option is based on yes or no proposition. Every binary option has an expiry date and time. During the expiry period, the price of basic investment must be on the correct side of the strike price in order to make maximum profit for the trader. It is an automatic system, the gain or loss of the trade is automatically credited or debited in trader’s account when the binary option expires.
Features of Binary Option
It is the basic movement of the binary option, in which we make your figure; the decision is shifted because you can choose among stocks, indices, currency pairs, commodities.
Payout in binary option is the gain that earned; the earning always depends on the type of binary option selected.
- Expiry of Binary Option Time
The expiry time varies from broker to broker and from one type of binary to another. Sometimes it takes a short period as short as one or two minutes to 15 minutes or long periods such as one or two days to weeks. The end of expiry time will reveal whether your forecast was correct or not based on the pay you receive from the binary option on which you have invested.
- The binary Option Type
There are a lot of binary options available in the market such as one touch, two touch, sixty seconds, range and so on and each option are varies from broker to broker. The standard option asks us to make a prediction about the movement of the prices, which means that you can predict whether the price value will increase or decrease after the expiry time.
- Risk Factor in Binary Option
The binary option is not free from any type of risk but it has an option to choose balance risk factor. That means if your prediction is wrong you will get a part of an initial investment of money that was invested.