Binary options are a type of exotic option that, while rare in the United States, trade commonly on foreign exchanges. The premise of a binary option is simple: the investor chooses their target price ...

Investors look for strategies to increase their returns and get more out of their money. Options trading is a popular strategy, but not every options trader knows about binary options. Binary options ...

Binary options trading offers a high-risk, high-reward way to speculate on short-term price movements. Unlike traditional options, binary options settle with a fixed payout either the trade ends “in ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Suzanne is a content marketer, writer, and ...

Binary options let investors predict asset price movements for a fixed payout. Investors know potential gain or loss upfront, simplifying risk management. Example: Predicting a stock price increase ...