Binary Options
Binary options or digital options are a new investment type that has only two possible outcomes, win or lose.
Payout and Refund Rate
This is the most important factor when trading binaries. The payout rate defines the profit potential if your forecast is right. Usually payouts are between 67% and 90%. The most popular assets enjoy better payouts. The best payouts are found in EUR/USD and in Gold Trading. The Refund Rate refers to a compensation amount if the trade is lost. Usually refund rates when trading binary options are between 5% and 15%.
Binary Option Types
There are many different types of binary options, here are the two major types:
Up & Down Options
It is the simpler and the most popular way to trade binary options. Choose an asset and a price direction (Up or Down) and if you are right, you win.
One-Touch Options
One-Touch binary options are contracts that win if the price of the underlying asset reaches a pre-defined price level.