The fact that the site you are referring to even allows you to buy a binary at 100 defies the nature of the instrument (btw, this is not your fault, there are some sites whose house edge makes Vegas jealous). In order to get an understanding of binaries I would stick to the CFTC and SEC regulated exchanges of NADEX and CBOE.With regard to their expense, the spread on binaries on these exchanges is usually not that different from the underlying and it is only one sided. You are correct that it can sometimes be 40 of your purchase price, such as in the case of buying a binary option at 10 (10) and the sell price is 6 would that equate to 40 of the purchase price. It would still only represent 4 of the overall potential option value.Additionally, from a risk perspective, and I am only speaking about exchange traded binaries, not the circus sites, binaries offer a much better risk perspective than trading a contract in the underlying. Here is an article on utilizing binary options as an addition to a traditional trading approach.One-Touch binary options are a very different beast than your other common varieties of binary option contracts. For one thing they can only be traded during the weekends when global markets are closed. For another they can have returns that exceed 100, in some case by quite a lot. Obviously the greater the risks you take, the greater your potential rewards will be. These one-touch option contracts have become fairly popular in the last couple years and are now offered by most of the top brokers in the industry. Return rates can vary quite widely among brokers though so be sure to look at that whenever considering opening an account with someone.One-touch options are also frequently referred to as Touch/No Touch options as well. These options are generally available on weekends only and have an expiry window that runs through the following week, expiring Friday at market close. If your one-touch option gets to that point though, then you have lost. This is because if at any timeduring the week that option were to reach the target level, the contract would be immediately closed out, and your account credited with the profits due you. As far as what those target levels are, that is predetermined by the broker based on market conditions and historical data. Sometimes you are presented with more than one choice of level but usually your only determinations are the direction (call/put), and the amount to invest.As you can see from the image above the payouts on these one touch options can be very high indeed. In the case of the Traderush platform shown here (where our personal trading account is) you can find returns as high as 600 in some cases. A maximum return of 500 is more common, but a few other top brokers offers returns up to 600 so just do your homework before jumping in to find the best returns. So now that we know what one-touch binary options are, how do people go about trading themMost brokers offer weekly options trading contracts in units, of 50 each (though we have seen a couple with 25 units). So clearly the minimum trade amount in these contracts is the cost of one unit, 50 in our example from Traderush. The return rate offered by your broker will be based on market conditions (volatility) and the distance between current price and the target price.Luckily, learning how to trade weekly options is a breeze. Lets say that we are decidedly bearish on Gold at the moment (true) and believe that there is at least a reasonable chance of the asset going down to test that 1200 level next week before bouncing back up a bit (not quite true which is why we are not really executing this trade). These beliefs therefore lead us to purchase a put touch option contract for two units 100 invested. This option will have until next Friday now to reach that target level of just under 1200 USD. Because the gap at the time of purchase is relatively large 8212 at around 50 8212 the return rate offered is also relatively large at 430, or 530 on our 100 investment.If at any point during the following week the price of Gold so much as touches that 1190 price level then our trade will be automatically closed out by the broker and our account credited with the 530 return due us. What a deal eh If, however, we turned out to be wrong in our analysis and the Gold price never reaches that magic 1190 mark then we would be flat out of luck, a bit fat zero return. There are no refund rates offered on one-touch binary options. They are truly binary in nature.In its most simplistic overview, a Binary Option is a form of speculative futures trading whereby the payoff is either a pre-agreed amount or nothing at all. This dual outcome is the reason the term Binary is used. Binary Options can be applied to a broad number of assets including Commodities, Stocks, Indices and even Currency Pairs.The main prerequisite requiredby these assets is that their values fluctuate constantly throughout eachtrading day. This is important asyou never actually buy an asset when you purchase a binary option, you are simply making a speculative investment on an assets behaviour over a set period of time.Binary Options have gained much popularity in recent years due to their simple up/down nature, the low cost required to participate and the increased number of online brokers offering services to the public. They are now more accessible than ever, and provide an incredible opportunity for traders to earn vast profits in as little as 30 seconds.As with any form of financial trading and investments, there is a level of risk involved. Trade with no preparation or understanding of the instruments, tools and processes available, and you run a high chance of running trading losses. Unlike gambling or betting where a high level of chance effects your success, the secret to success in online trading, as always, is education. A simple understanding of the basic terminology alone will increase your chances enormously. With that in mind, we have a brief overview of the terms and phrases used in Binary Options Trading to assist you in your Binary Options trading career.Pip This is an acronym for Percentage In Point.