What are Binary Options?

We were all affected in some way by the global financial crisis of 2008. Some of us took a direct hit with the devaluation of assets; others are still experiencing the resulting recession, which led to widespread unemployment and austerity measures, and impacted worldwide trade and investments.

It was as a result of this very crisis that Apexoption's founders were inspired to open a binary options brokerage. They anticipated that in the aftermath of the global financial meltdown, there would be demand for a simpler way to trade the financial markets, for a way of calculating and limiting risks. They took what was in 2009 a relatively unheard-of product, and set out to it to make it accessible to both experienced investors and the wider public. The results have been incredible. In the last few years, binary option trading has grown in popularity, and as word spreads among previously disheartened investors, the industry looks set to continue expanding. Today there are dozens of firms who also offer an online binary options platform - at Apexoption, we like to think that we started something of a revolution!.

Binary Options Explained

So what are binary options? As you'll see on our trading platform, what sets them apart from traditional investments is the simplicity of executing a trade. Investors determine whether the value of an asset, such as gold, oil, the Euro versus the U.S. Dollar, or Facebook stock, will go up or down in a set period of time. This simplicity affords traders total control over their trading decisions. If you predict the asset's direction correctly, you win a predetermined percentage of the amount you chose to invest, typically around 70 - 80%. If you are wrong in your prediction, you lose the investment amount. There are two options, up or down, and two possible outcomes, win or lose; hence the name 'binary' trading.

The boom in binary options trading has been driven by investors who appreciate knowing in advance exactly what they stand to lose or gain on each trade. Unlike the stock market, the precise value and percentage movement of an asset is not important. Unlike Forex trading, you can never lose more than the initial investment amount. Binary options allow the 21st century investor to focus solely on what is important, the direction of the asset, without other complicating factors, and to enjoy exceptionally high returns for each correct trade. Simplicity really does pay!