Binary Options |
TOP BINARY OPTION BROKERS: What Are Binary Options? Binary options, also known as digital options, are limited risk, short-term options where the trader will take a yes or no position on the performance of an asset during a set timeframe. At the conclusion of the option, the payoff will be all or nothing. Binary options provide traders with an avenue to trade the most popular; stock indices, currencies, commodities and stocks with minimal capital. Compared to traditional options, binary options are easier to understand. Binary options are cash-settled options; in other words they can only be exercised on the expiration date, similar to European options. If a trader's options closes "in the money," they are paid a pre-determined amount of money. Likewise, if the trader's options closes "out of the money," they receive nothing. Binary option investors trade "on" the market versus "in" the market similar to other trading methods. What Assets Are