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A binary option is a type of options contract in which the payout depends entirely on the outcome of a yes/no proposition and typically relates to whether the price of a particular asset will rise above or fall below a specified amount. Once the option is acquired, there is no further decision for the holder to make regarding the exercise of the binary option because binary options exercise automatically. Unlike other types of options, a binary option does not give the holder the right to buy or sell the specified asset. When the binary option expires, the option holder receives either a pre-determined amount of cash or nothing at all.


Binary option trading in the US is regulated by the Commodity Futures Trading Commission (CFTC) and it is only legal to trade binary options on a CFTC-regulated exchange. The CFTC is a US government agency that oversees the derivatives markets and works to protect market participants and the public from fraud, manipulation, abuse, and systemic risk.


Welcome to the largest expert guide to binary options and binary trading online. BinaryOptions.net has educated traders globally since 2011 and all our articles are written by professionals who make a living in the finance industry and online trading.


BinaryOptions.net will never contact anyone and encourage them to trade. If someone is claiming to work for Binaryoptions.net, it is a scam. Read the scams page to ensure you stay protected while trading.


A binary option is a fast and extremely simple financial instrument which allows investors to speculate on whether the price of an asset will go up or down in the near future, for example the stock price of Google, the price of Bitcoin, the USD/GBP exchange rate, or the price of gold.


These videos will introduce you to the concept of binary options and how trading works. If you want to know even more detail, please read this whole page and follow the links to all the more in-depth articles.


The number and diversity of assets you can trade varies from broker to broker. Most brokers provide options on popular assets such as major forex pairs including the EUR/USD, USD/JPY and GBP/USD, as well as major stock indices such as the FTSE, S&P 500 or Dow Jones Industrial. Commodities including gold, silver, oil are also generally offered.


Individual stocks and equities are also tradable through many binary brokers. Not every stock will be available though, but generally you can choose from about 25 to 100 popular stocks, such as Google and Apple.


Trading cryptocurrency via binary trades is also booming. The volatile nature of cryptos makes them a popular binary asset. Bitcoin and Ethereum remain the most traded, but you can find brokers that list 50 or more alt coins.


Recently, ESMA (European Securities and Markets Authority) moved to ban the sale and marketing of binary options in the EU. The ban however, only applies to brokers regulated in the EU.


The ability to trade the different types of binary options can be achieved by understanding certain concepts such as strike price or price barrier, settlement, and expiration date. All trades have dates at which they expire.


As a financial investment tool binary options are not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest. The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers.


Binary trading strategies are unique to each trade. We have a binary options strategy section, and there are ideas that traders can experiment with. Technical analysis is of use to some traders, combined with charts, indicators and price action research.


Binary options can be used to gamble, but they can also be used to make trades based on value and expected profits. So the answer to the question will come down to the behavior of the individual trader. Any investment or trade will be a gamble if done with no skill or knowledge.


Otherwise, a trader has to endure a drawdown if




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