How Does Options Trading Works ?
Binary Option Trading is starting with a simple Yes or No question. Will the price of Gold be above $1529 at 3:00PM?
If you think Yes, you Buy the
Binary Option. If you think No, you Sell it.
The actual price at which you buy/sell is not the price of Gold, but rather a value between 0 - 100.
For example, Gold $1529 (3:00PM) may be priced at 41.50/46.50.
The first figure is the Bid Price (sell), the second is the offer price (buy).
The Bid/Offer price fluctuates throughout the day, but always settles at either 100 (if the answer is Yes) or zero (if the answer is No).