i would call binary options as a digital trading method that involves only two outcomes
its
either you loose your money or you win over 60 percent of your invested
capital usually determined by the broker you are dealing with
i
would say its like investing in an artificial market since you are
actually either playing against other players in the house or the house
itself but using real life trading platforms.standing
here is a little excerpt from wikipedia to help your understand it better
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 of some asset
or nothing at all (in contrast to ordinary financial options that
typically have a continuous spectrum of payoff). 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
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. Binary options are offered against a
fixed expiry time.
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
$1,000. Then, if at the future maturity date,
often referred to as an expiry date, the stock is trading at above
$100, $1,000 is received. If the stock is trading below $100, no money
is received. And if the stock is trading at $100, the money is returned
to the purchaser.
i hope the above explanation is enough to make you understand what option trading is all about
always stay green by learning the foundamentals of trading before investing your money in binary options
