How do binary options work?

Binary options involve predicting whether the price of an asset will move up or down within a specified time frame. Traders select an asset, choose an expiration time, and place a trade based on whether they expect the price to be higher or lower at expiry. A correct prediction results in a fixed payout, while an incorrect one leads to the loss of the invested amount. This structured trading method offers a clear risk-reward ratio and is commonly used for short-term market speculation.