Binary options are a simple, straightforward financial tool. Either an investor makes a certain amount of money, or he or she makes nothing. There are only two results, which is why they're called binary options.
Why is trading with binary options Popular?
One reason that trading with binary options
are so popular is that they're straightforward and relatively easy to understand as financial tools go. For instance, say that someone invested in a binary option where the minimum requirement was $100, and the payout was $1000. The person would pay a certain amount of money as an investor, and at a certain date the option in question would have to trade at over $100. If it does then the investor gets the payout, and if not then the investor will receive nothing. It's really that simple.
Cash or Assets
Binary options don't have to be paid out in cash, though that's one of the most popular types of payout. The other option that investors can take is to receive an asset payout. In this case when the good option comes up they will receive something like shares of stock, or additional assets that may not, necessarily, be cash value assets. This option is attractive to those that would rather receive yet more things to grow and nurture to increase a portfolio.
Low Cost to Begin
Unlike investing in stocks, binary options are relatively cheap for those that want to get involved in investing but don't have a lot of free funds to pump into the endeavor. However, these options are equally available to those who do have money and who want to see profits grow from their investments. So the option has broad appeal across different levels. Additionally, these options have appeal internationally, with many people who live in one country participating in the markets of another as a way to make more money.