This is the standard Binary Options trade. Trader selects asset, time period, and investment amount. Trader then selects either a Call/Up trade or Put/Down trade. In a Call/Up trade if asset is higher than original price when time period expires trader receives profit indicated at the beginning of trade. If asset is lower than original price at expiration, trader loses investment. In a Put/Down trade the trader profits if the asset is lower than the original price at expiration.
The Banc De Binary screenshot above is an example of an Up/Down binary option. Option expires in 7 minutes and 6 seconds. Trader has 3 minutes and 6 seconds to execute the trade. Payout for this option is 75% of investment. If trader clicks on Up button the following displays:
In this case trader decided to Invest $100 on a Call/Up option in the belief that AUD/USD will be higher than 1.01022 after the option expires in 6 minutes and 22 seconds. If asset is higher than this price at the expiration than trader secures a profit of $75. If asset is lower after expiration time trader loses his investment.
All binary option brokers have this trading feature as part of their trading platforms.
