This tool is used to deliver a fixed return based on a predicted forecast. It can also enable traders to earn high returns in short time frames. It can be used to trade underlying assets and its defining characteristic feature is ease-of-use. Successful results are solely dependent on price direction and not the size or magnitude of an assetsrsquo movement.Unlike traditional options, the trading of binary options involves shorter expiry times, predetermined yields, and a binary option can not be sold before the selected expiry time intervenes.The payouts in binary options offer you three possible winning outcomes 39In the Money39, 39Out of the Money39 and 39Tie39. These terms indicate the ending of the trade in reference to the market price past the expiration time. Meaning, your payout is subjected to the asset final stop, whether it ended above, below or aligned with the market price.Most lsquoIn the Money39 options pay out a value of 65-71 of the initial investment and those that are lsquoOut of the Moneyrsquo result in a loss of around 85 of this investment.Simply put, a binary option is a financial instrument that provides you with access to global assets. Its simplicity, minimum risk and quick earnings have fostered its popularity and are also the building blocks upon which Opteck instigated its platform.Assets are the measured value of the stock, commodity or currency from which the option is derived. Because of the assets39 lack of ownership, when a Binary Option is purchased the cash value reflects the live market price of the asset it is based upon.Most common assets refer to the following four major groups:1. Stocks (Lloyds, Barclays PLC, Google Inc., etc.)2. Indices (FTSE-100, IBEX- 35, SampP 500, etc.)3. Commodities (Gold, Silver, Oil, etc.)4. Currencies (Euro ndash US Dollar, British Pound ndash US Dollar, US Dollar ndash Turkish Lira, etc.)A call option grants the trader profit whenever the option39s price is higher than it was at the expiration time, i.e. the option expires above the strike price. If the option expires at precisely the level of the strike price, the initial investment is reimbursed. In the stock market arena, this action is called 39going long39.Conversely to call options, lsquoput optionsrsquo grant the trader profit in the event that at the time of expiration the option39s price is lower than it was at the time of purchase, i.e. the option expires below the strike price. These options are similar to lsquogoing shortrsquo, where the optimal outcome for the investor is for the price to fall. If the option expires precisely at the level of the strike price, then the initial investment is reimbursed.The investment amounts are the sums a trader invests in trades. The amounts are not fixed and can vary, according to your trading desires. These amounts also set the level of pre-determined payout percentages and return of investment, at the time of the option39s expiration time. Meaning, you control the extent of your losses and profits.To invest in a Binary Option in an underlying asset, you first decide whether the option price at the moment of expiration will rise above or fall below the current strike price. Predicting for a price rise ndash makes it a 39call39 option.