Binary Options also go by the name of Digital Options. In this business, a trader can predict the price of an underlying asset. When he predicts that the price will rise, it is called digital CALL option. And when he predicts that the price will go down, it is called digital binary PUT option.
In many Binary Options Sites, the pay off is almost similar. The holder gets 75% payoff in binary options. Check with other websites. It will be a little less, but still the payoff is incredibly high.
Every binary option will give one of the two results. If the trader makes his prediction correctly, he gets 75% profit. And in case, the investor makes a wrong prediction, he will get back only 10% of his investment. The trader just has to make his prediction on which direction it will be going. He does not need to predict on how big the chance will be.
Another important advantage in trading options is the large amount of assents available for trading. You are able to choose the assent that you are familiar with or an asset that is most likely expected to go up or down. These two main benefits has made options trading a very useful financial instrument.
Now the question is how to improve the chances of predicting in the right direction. For this you have to choose the right asset and using your maximum knowledge on it. Browse through the internet and read different financial news and information about it. Binary Options sites have a list of all the assets available for investment like NASDAQ, S&P 500, Dow Jones, FTSE 100, DAX 30, CAC 40; commodities. Many digital options websites will let you trade options on currencies pairs and stocks. If you are familiar about the asset, there are more chances that you will be able to predict in the right direction. You will also learn about the assent and its behavior upon certain political events
