Up until 2008, binary options were not as popular as they are now. Traders had to wait until they were given the right to trade in them, and since then their popularity has soared. They can best be summarized as the trades that can end up being money (success) or bust (loss). Trading gives simple risk-reward arrangement, all which is clearly laid out prior to conformity of the trade. This has opened up the market to more traders, as you only need to hire a broker and get started.

In the past, binary options' trading was done by a few, with hedge fund managers being among the main first timers. They were traded to a select few, and individual investors could only do it over the counter. This is due due to the fact that to trade in this market, one needed to hire a special investor and pay some fees just so to gain access. But once they were introduced to mainstream trading platforms, their popularity has exploded, and many traders now offer to the masses.

Since 2008, binary options have been traded on the Options Clearing Corporation course and the American Stock Exchange has picked up the baton and followed suit. Part of the attractiveness of this sort of trading is the fixed odds and rewards that come with trading, and also the growing number of investors trading in them. Investors can trade at any time of the day, thus giving comfort to home investors; a 24 hour a day internet connection and you are good to go. There are numerous sites that offer this sort of trading, and the returns on investment vary greatly, although the underlying notion is that it is very profitable if done well.

Binary options' trading is usually offered with a variety of assets, stocks being the most common. They are offered as part of stocks, but are limited to big name company stocks like Apple, Microsoft and Intel, just to name a few. Technology stocks take the bulk of stock based and foreign exchange based binary options. They can be found on most big bonuses trading platforms, with hedge funds and investment banking outfits being the big winners.

One great benefit of binary options is that they have a short trading time frame and their payouts have no extra hassle. The short time frame is dependent on the investor, though there have been trades that rented from 15 minutes to more than a month. The simple payout offers an attractive option to most traders, as more of them move towards one-hour binary options. However, if the trade flops, losses can return as much as 0% to 15% of the initial capital.

Trading in binary options is easy, and you can do it from the comfort of your couch or office. Find an online broker and open an account today, and enjoy trading in one of the most popular trading instruments available.

Source by Wayden Enciso