A binary option, additionally known as a digital option or an all-or-nothing option, is a financial mechanism where the trader has to decide between two positions: will the value of a given asset go up or will it go down over a specific timeframe? If the trader is correct and the option expires in the money he/she receives a fixed, predetermined payout. If the trader is incorrect and the option expires out of the money usually he/she receives nothing at all. Binary options give traders ways to trade the most active stocks, indices, commodities and currencies over the internet.
For example, if a trader assumes a position that the value of oil will increase over a designated period of time, and is correct, he/she earns a set payout. If the value of oil drops however, the trader loses the entire amount of the investment. It makes no difference if the given asset exceeds the original price, the strike price, by $1 or $50: The payout is always the same.
There is no need to install or download any external software in order to trade as our platform is entirely web based. All that is required is a computer or mobile phone equipped with an internet connection. All you need to do is to register, make an initial deposit and you are good to go.
Trading binary options yields a much higher return on your investment than any other form of trading.
When trading binary options you know exactly how much you are risking right from the get-go and how much you will profit if you win the trade. Only your select amount to risk on any given trade is at risk. In other words you know exactly how much money you can potentially make if you win and how much you can possibly lose. This enables you to essentially calculate your risk before you have spent a penny, something that other forms of financial trading do not allow.
TorOption’s simple-to-use but highly dynamic trading platform is perfect for any sort of trader. Whether you are a seasoned veteran or just a novice there are different types of binary options for everyone. Anyone can win and anyone can trade. All you have to do is make a correct prediction out of two possible outcomes.
Binary options trading involves significant risk. We strongly advise that you read our Terms & Conditions. Although the risk when trading binary options is fixed for each individual trade, the trades are live and it is possible to lose an initial investment, particularly if a trader chooses to place his entire investment to a single live trade. It is highly recommended that traders choose a proper money management strategy which limits the total consecutive trades or total outstanding investment.
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