Binary options (also known as a “digital options” or “all-or-nothing options”) are a simple yet exciting way to trade the financial markets. Binary options are over-the-counter options that pay a
pre-determined, fixed amount, depending on whether or not a financial event
occurs by a certain time such as the next hour. Binary options can have only one of two possible
outcomes and allow you to take a simple "Yes or No" approach. For
example, will the AUD/USD finish above the current price at the end of the
hour? If your prediction is correct, you earn a fixed, pre-determined payout - generally 70%-80% of your investment amount. Like traditional options, binary options are cash-settled and cannot result in the delivery of the underlying asset.
Binary options give the holder the right to profit from moves in the underlying market. Examples of underlying markets are: gold,
silver, currencies, shares, indices, etc. Basically, any instrument that is
‘tradeable’. A call binary option enables the holder to profit from an underlying market
that is going up. Conversely, a put binary option enables the holder to profit
from a downward movement of the underlying market.
Market Punter offers binary options on a variety of individual shares,
stock indices, currencies and commodities.