Binary trade, binary options, all-or-nothing options, digital options and fixed return options, are all similar products that are easily used by both inexperienced investors and seasoned veterans alike. Basically these options are a bet you put up on a given piece of stock or currency on whether or not it will rise in value over a certain period of time. These periods can be done by the month, week, and day and even on the hour. The pay outs differ from one stock or currency to the next depending on the length of time before closing will also often affect the payout price.
When taking out trading binary options free demo account the payout is listed in point totaling to 112 the two halves of the split determine how much money one could make if they won and how much money they lose if predicted incorrectly. For example if the Stock for Joe’s Black Marmalade at the top of the hour at $48.47 a share and a binary option in the bottom of the hour is quoted at 37. If you bet $10 per point and at the bottom of the hour the price of JBM is $46.50 you have won and will make $660, should the market been against your favor you would have lost $343. There are variations on these options depending on the broker and how they deal.