Hi There,
I have written below article in hurry. I can write better and more detailed article if project is awarded to me.
As the name suggest it gives two choices for trading. You predict performance of a particular asset. Your prediction may become true or false. Depending upon outcome of your prediction you make money. If it becomes true, you make money, otherwise you lose.
Your prediction can be like stock price of XYZ Company will rise in next 2 day or as simple as something like in next week Dollar will be weaker. In both cases of prediction, one can make money if predictions are correct.
Thus, there are two piece of information in a prediction. First information is the asset under consideration such as price of dollar or stock price of XYZ Company. Second piece of information is time such as next week or tomorrow at 9:30 PM.
If prediction is a possibility of rise in performance of underlying asset in specified time frame, then it is called “Call” option. The other possibility is prediction of fall in price of underlying asset, and it is named as “Put” option.
The underlying assets that can be traded in binary trading are:
• Indices of country such as Nasdaq, Nikkei
• Forex rates such as price of dollar
• Commodities such as Gold, Silver, oil, coffee, sugar
• Stocks – such as stock price of Google, Facebook, Microsoft