Binary Option

A binary option is a relatively new form of investment here in the USA. In Europe, and around the world, binary options have been a popular part of investing. A binary option could be considered a "bet". When you make the investment, you are not actually buying the underlying asset on which the option is based. You are essentially entering a contract. You have two choices when it comes to a binary option. You have a "call" option, and a "put" option. Read more about these below. Another great thing about the binary option is the knowledge that you have going in to the investment. Before you make the investment, you already know exactly how much you stand to gain, or lose. There is a predetermined percentage of return, or loss. You "bet" on whether the underlying asset will rise or fall. There is more detailed information below, but if you want to start investing now, check out www.ez-binaryoption.com.

There are two possible ways to invest in a binary option. There is the "call" option, and the "put" option. These are both directly related to the "strike price". This is the value of the underlying asset at the point that you place your investment.

Call Option
When you select a call option, you are saying that you believe that the underlying asset will be at a higher value at the expiration time, than the strike price. If this is the case, you will receive the full returns. It is that simple. If the underlying asset is below the strike price on a call option, you will suffer the expected loss.

Put Option
If you select a put option, you are saying you think the underlying asset will be at a lower value at the time of expiration, than the strike price. If this is true, you will receive the full returns. If it is valued higher than the strike price, you will suffer the expected loss.

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One of the great things about a binary option is the short-term nature. You can invest in a binary option in the following very short-term timeframes.

One Hour

One Day

One Week

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There are three major online brokers that specialize in the binary option. A link to each is below.

AnyOption

Binarix Trading

EZTrader

For information on each one of these brokers check www.ez-binaryoption.com