What are Binary Options?
The binary options strategy is based on predicting how the price of a financial instrument will behave after a period of time, that is, if it will rise or fall. If we get our prediction right (it is said that the binary option has expired "in the money"), we can obtain 100% of the amount we have invested plus a percentage that we know in advance (for example 85%) and that depends on the conditions from each binary options broker. If we fail to predict (the binary option is said to have expired “out the money”), we will generally lose the full amount invested.
Binary options are an agile, simple and very fast investment method. It does not require high capital to make a profit and the returns it offers are much higher and much faster than other investment methods. On the other hand, you can lose the invested capital if you are not correct in a reasonable percentage of the times you invest, therefore you need to know well the instrument in which you are going to invest and for this you can help yourself with analysis tools, fundamental analysis, hedging strategies, etc.