What is Binary Option Trading and How is It Executed?
Binary option trading is the name of the processes which are executed during this trade. The basic principle of binary option trading is to purchase a contract for a certain asset according to market movements and predict the direction it will move. And the binary option trading is the actions that are taken according to these movements.
To give an example; you want to extend the binary option contract, which you purchased upon the price increase of gold, because you believe that its price will increase more and therefore you extend the length of the option contract. This extension action is the name of the binary option trading which you have executed. To give another example about the price increase of gold, you want to close the option in order not to lose money and with the “close now” action you minimize your loss after an unsuccessful option contract.
The actions taken in binary option trading are quite important because the option transactions you execute will differ according to the option types which you choose, as you are trading with binary option.
Option transactions are one of the biggest advantages of binary option trading and you can get more detailed information about binary option trading on “binary option strategies” section.