Interested in trading binary options and don't know how to start?
Here are some basic terms that will help you gain profits in trading binary options.

Binary options, also known as digital options, or all-or-nothing options, are options that have only two (hence the term binary) possible outcomes - either you're in the money or you're out of the money.
Binary options can be based on a variety of underlying securities – Binary stock options, Binary commodity options, Binary forex options and so on. We offer underlying securities from a large variety of markets, for example American market binary options, European market binary options and many more. Please take a look at our Trading Area to see the full list of options available. EZTrader.com is constantly adding new markets and securities for you to have more to pick from.
Every binary option has a fixed payout; payouts are known before you enter the trade and are not affected by the magnitude of movement of the stock, commodity or currency pair value meaning a movement of even a fraction of a point in the direction you anticipated is enough to be in the money and vice verse.
When executing a binary option trade you have to estimate whether the underlying security value is going to be higher or lower at expiration time than it is upon executing the trade:

If you think the price at expiration time is going to be higher than your strike price (the price at the moment you executed or entered the trade) you should place a binary call option.
If indeed the expiration price is higher than the strike price for the underlying security then you're in the money and you get the pre-known profit percentage out of your trade amount.

If you think the price at expiration time is going to be lower than your strike price (the price at the moment you executed or entered the trade) you should place a binary put option.
If indeed the expiration price is lower than the strike price for the underlying security then you're in the money and you get the pre-known profit percentage out of your trade amount.

The term refers to trade on a binary or digital option that is said to be "in the money" which means the outcome upon expiration price was in the direction you anticipated – If you placed a binary call option, meaning you estimated it will increase in value and indeed the underlying security has a higher value in expiration time (Expiration Price) than in the time of executing the trade (Strike Price).
If you placed a binary put option, meaning you estimated it will decrease in value and indeed the underlying security has a lower value in expiration time (Expiration Price) than in the time of executing the trade (Strike Price).

The term refers to trade on a binary or digital option that is said to be "out of the money" which means the outcome upon expiration price was in the opposite direction than what you anticipated – If you placed a binary call option, meaning you estimated it will increase in value and instead the underlying security has a lower value in expiration time (Expiration Price) than in the time of executing the trade (Strike Price).
If you placed a binary put option, meaning you estimated it will decrease in value and instead the value in expiration time (Expiration Price) is higher than in the time of executing the trade (Strike Price).

A Tie outcome at expiration time in binary options describes a situation when the strike price (price at the time of executing the trade) is equal to the price of the asset upon expiration (expiration price). Another term to describe this situation is "the breakeven point".

Binary options (AKA Digital options) have an extremely high payout, ranging from 68% and reaching even a 95% payout. Each option has a different payout written next to it and is something for you to know and consider before you enter the trade.

When you trade binary options, you have to choose your trade between assets from 5 different categories as; binary options on commodities, currency pairs (Forex), indices, future indices and binary stock options.

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