Binary options are a relatively new form of online trading that has become extremely popular in the last 2 years. It is different from traditional options in that you are not actually buying anything but rather just placing a side bet on an expected outcome.
How To Trade
Trades are placed by predicting the direction an asset will move during the specified time frame. The time that option ends is called an expiry time. Expiry times range anywhere from 30 seconds until months away. At the end of the time if the direction you chose was correct, you win the trade. Winning trades pay out slightly less than 100% and typical payouts range between 80-85% depending on the broker.
Binary Options and Bitcoin
With the popularity of Bitcoin and its acceptance as a currency binary options platforms began adding BTC as one of the currencies to trade. This has further helped the growth of binary platforms as well as mainstream recognition of Bitcoin as a currency. Most brokers only offer it as a currency pair versus the American Dollar.