Binary Options are CFDs which let you trade on events with a ‘yes or no’ outcome, with an ‘all or nothing’ payment profile. This means you know your potential maximum profit and loss upfront.
Typically covering the performance of a financial market within a specified time - for example whether it will be up or down on the day - Binary Options are available on forex, indices and commodities.
In this respect Binary Options are an interesting, alternative way of trading on a market without assuming the risk that sharp movements will cause sharp losses.
As you can’t lose more than the premium you have paid upfront, your risk is strictly limited when trading Binary Options.
There are several types of Binary Option available over a range of timescales. Click here for more details.
CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial investment, so please ensure that you fully understand the risks involved.