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The Bottom Line Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That's why they're called binary options—because there is no other settlement possible.

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Let us take them one after the other. Expiry times can be as low as 5 minutes.

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The easiest way to explain what a binary trade looks like is to provide an example. A binary trade means you place a bet on that theory.

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Your view will need to pan out within the lifetime of the binary optionor it may expire worthless. Other variants of the binary option are one-touch and double-touch binary options.

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What is the Best Binary Options Broker? Binary options trading hinges on a simple question — will the underlying asset be above or below a certain price at a specified time? If so, you can make substantial profits with one of the most straightforward financial instruments to trade.

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Smart traders do it every day, executing binaries in everything from oil and gold to stocks and currency pairs. The question is, is it as easy to make money as a lot of websites claim? A casual look at a handful of binary options brokers leaves you with the impression that all you need to do to turn a profit is to create an account. Moreover, you can supposedly do so over and over throughout the day.