What are binary options?
Binary options are a type of options (a contract that gives an owner the right to buy or sell an asset or financial instrument within a given time frame) that provides only two possible results: all or nothing.
What makes binary options different from other forms of options?
With traditional forms of options investment, the investor has to buy and own an asset and has to monitor the price movement of the asset he or she has purchased. The investor then has to sell the asset back. If the investor sells the asset back during a period when the price of the asset is in decline, then the investor will lose money. But if the investor sells the asset back in a period when the price of the asset has increased from the original buying price of the investor, then the investor will make money. This type of investment means that the investor has to constantly worry about the movement of the price of the purchased asset or assets so that he or she will know when to sell the asset/s back.