binary option trade

by Wesandri Yusir Internet Marketer

In finance, a binary option is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount (or a precise predefined quantity or units of some asset)

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Review on binary option trade

When you trade binary options, you are essentially betting on whether the value of the underlying security will be above or below a predetermined price (the strike price) when the option expires. If you believe the value will go above the strike price, you purchase a call option, and if you believe the value will go below the strike price, you purchase a put option. Therefore, there are only two possible results:

You were correct in your prediction! You receive a set amount of cash, or a fixed amount of the asset.
You were wrong. You essentially lose the money used to purchase the option.