What are binary options? Binary options are simply limited-time based trades that are available on the indices, commodities, and forex markets. The trader either believes that price will go up and expire above the strike or that price will not go up and will not expire above the strike.
What Are Binary Options?
In this video, Gail Mercer, Founder of TradersHelpDesk, explains what binary options (using the Nadex Binary Options model) are and the difference between buying a call and selling a put. Basically, the trader either buys a strike (buying a call) or sells the strike (selling a put). The maximum payout on the Nadex Binary Options are $100 if the price expires in the money.