What are Binary Options

Binary Options, also known as fixed payouts or digital options, are deemed to be a simpler and more effective method of investing when compared to directly trading stocks, currencies, commodities and Indices. For this reason they are considered the ideal choice for all traders, from beginners to seasoned traders. Binary Options trading requires the assessment of only two primary factors. You simply select the market direction and the expiration time on the asset.

Two other characteristics of binary options are high payouts and pre-determined risk exposure. Binary options are contracts that payout a pre-advised profit for a winning trade whereas they refund a percentage of the initial deposit in the case of losses. Traders only have to choose the direction of price movements and not their size or magnitude.

In a typical binary options trade you would open a ‘call’ or ‘high’ binary option if you think that it will increase in value so that its price at the expiration time is higher than the opening price. If you are successful, you will then receive payouts as high as 90% of your invested amount. Alternatively, if you anticipate that price will drop below your opening or strike price within a pre-selected expiry time, then you should open a ‘put’ or ‘low’ option. Your will be paid you exactly the same percentages as stated above for the ‘call’ option depending on your result.

In general, minimum deposit and trade requirements are very low, meaning the beginning investment and overall capital risk level is affordable for most prospective traders. TradeThunder offers the best environment for any trader concerned with simplicity of trading and low risk. We are one of the only brokers to offer One Click Trading. You simply click on the ‘High’ or ‘Low’ button to activate the trade. We also offer a free no deposit demo account which allows traders to test the platform in real time without risking any capital whatsoever.