If you want to earn from binary option, it is important to understand how it differs from regular option. Binary option comes in the form of contracts purchased on stocks, currencies, indices or commodities. In regular options, you can earn with the movement of price. There is a specific expiration day of the contract that will determine your profit. If the stock is lower than the strike price, you lose your investment. But if the stock is above the current trading price upon contract expiration, then you would make a profit from your investment.
That is how regular options work. Binary options are a lot different since it give the buyer a fixed return even if the price of the stock ends up at all above the strike price. There is a fixed return during the maturity date. But if the stock price is below the strike price, you get nothing. The buyer does not have an option to buy or sell the stock. In short, you can put it as all or nothing.
Binary options have different expiration date depending on the contracts you have chosen. Some can expire hourly, daily or monthly and the payout can range from 65%-81%.
Binary options appear to be an attractive package to investors since it simplify things. With the fixed risk, reward and time frame there’s a good chance that you will grain profit from your investment. You just have to decide what particular asset to choose, the amount of investment and expiration date. What is important here is the direction of the price at the end of contract.
There are many financial portals online that can help you understand binary options and option trading. You can even see some ForEx broker comparison based on pairs offered, regulation and bonus. Having access to top Forex sites and trading sites can really help you in earning and securing your investments.