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How To Invest Money With Binary Options - Tips How To Invest Money To Make Money In 2014
A Binary Option is a type of option where the payoff is all or nothing. Because of this characteristic, Binary Options can be easier to understand and trade than traditional options.

Binary Options are cash-settled as European-style options, meaning they can only be exercised on the expiration date. If, at expiration, the options settle in-the-money, the buyer or seller of the options receives a pre-specified dollar amount. Similarly, if the options settle out-of-the-money, the buyer or seller of the options receives nothing. This provides a known upside (gain) or downside (loss) risk assessment. Unlike traditional options, Binary Options provide full payout due to a single pip movement.

Despite the term "all or nothing", depending on the actual trading platform, "nothing" can actually mean "something". This means that at expiration time the owner of the option may actually get a certain payout amount, even if the option expired "out of the money".

Very often you may encounter binary options under another name. In forex exchange market Binary Options are known under the name of digital options.
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