Some of you may have heard of Binary Option Brokers, some of you may not. It's a relatively new form of betting where you can place wagers on the market. To put it simply, it's being a stock-broker without the stocks.

Now, you're probably thinking the same as I did when I first started using Binary Options; 'This sounds like it's going to be complicated'. Granted, when you hear 'stock-breaking', you immediately think of mentally exhausting and challenging work, but you could not be further from the truth when it comes to Binary Options.

For those of you who are computer savvy, you'll know that binary means 'a set of two', which is all you get from Binary Options. At Binary Option Brokers, you'll get two choices, rise or fall. Whilst these bets can be made in several ways, the basics lay in whether a company's, materials' or currency's worth will rise or fall. Like I said earlier, it's stock-breaking without the stocks (and a lot less pressure too).

The only bets you can make are 'rise' or 'fall', so whether a stock will go up in price, or down in value. There are a variety of ways in which you can make these bets which I will explain later, but that's the basics of it. Most brokers will offer a demo version, so you can give the market a try before you play any of your own money. You can also view trends and previous market results to get a feel where your bet should be placed.

There are five different types of rise and fall bets to make, each follow the basic principle of stock either rising or falling, but different on how you make your money.

Up Or Down

This is the basic option; all you have to do is decide whether the market will settle above or below its opening level. At the end of the day, the stock will have a finishing price which will be above or below its opening price, and that will be the final result.

Call Options

A call option is when you want the market to rise above a certain point. You set the point yourself, and if the market ends above your prediction then you will make a profit, if it settles below your expectations then you'll use your premium.

Put Options

Put options are the opposite of call options, instead of predicting the market will rise above a certain point, you'll bet that they fall below a certain point. All you need to do is place your expectation, then wait and see.


A target result is when you bet on the parameters that a stock will fall between. For example, you can bet that a stock will gain between 40-50 points that day, or if a stock will lose 25-35 points. This is more detailed type of bet which will take a little extra skill to get used to.


Ladder bets are very similar to both call options and put options, except you can bet on both rise and fall rather than just one or the other. You still have to set a point you think the stock will land above / under.

That's all there is to it really. Like I said, it looks a lot more complicated than it actually is, and once you're playing around with a demo version for a day or two, you'll understand exactly how to play the game.

Source by Glynn Marrow