In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-style options. When buying a binary option the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”/“Up” option or a “Put”/“Down” option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e.g. 5–30 minutes in the future, an hour ahead or at the close of the trading day. Binary options once bought cannot be resold before the expiry time is reached
For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received.
Now that you know what a binary option is here comes a way to automate the option trading. Instead of investing into the stock market where the company could or could not increase over a period of time binary options are bought and traded with the thought that yes it will go up or no it will go down. Either way the way you swing your investment you could make a ton of money. And like i said make it automated and its even easier.
Ive looked into a producted that has done just that. And if your looking to invest a little and get a great return then i suggest you look into this system. It doesnt take alot of time or loads of money to get started. But it pays back great on the return, with out having to sit and watch the market and hope you've made the right investment. So follow this link and watch the video.
