Going with the leading financial markets of the world, including the Forex market, the Stock Market, the commodities market, and many other, comes a small scale trading system to which a lot of people are still not familiar.
In every market, there are certain advantages as well as disadvantages, but some of the trading options provide traders much more profit then they may lose. The binary option is one such method. There are a number of characteristics that differentiate the the binary option from its competitors and here is a basic overview of how binary option is different and beneficial to the retail traders.
The binary option is also called as all or nothing options, Fixed Return Options, as well as Digital options. Binary options offer a unique trading option for the retail trader that provides a number of advantages for other financial markets such as stocks or Forex. As the meaning of the word, a binary option provides the trader with only two possible results. You can either win your investment or lose it.
The unique thing about this system of trading among the other things is that a trader cannot lose more than his original investment. The trader predicts correctly, and in this case, he could make up to 70% of his original investment, or they estimated inaccurately, and in this case, their original investment is lost, with the chance of keeping a small percentage, as per the brokers policy.