Some have a penchant to invest in commodities, some in currencies, and others like indices. This is why MaxOptions binary option trading platform provides over 60 asset types in 4 asset classes: commodities, currencies, stocks, and indices. You are almost certain to find the financial asset you prefer when you trade on MaxOptionss binary option trading platform.MaxOptions delivers unmatched binary options trading platform by Spot Option. Our binary options trading expertise makes financial trading in shares, commodities, indices and Forex easy to learn, practice and trade. Our online binary options trading platform lets you trade financial markets from anywhere in the world 24 hours a day. Our financial trading forums and financial trading blogs offer you all the insight you need to succeed in trading binary options. We deliver exceptional personal service and support to help all our traders understand financial trading, review their binary options investment strategies and decide how to seize the opportunity of binary options trading in shares, equities and Forex.Binary options trading sounds too legit to be anything but above board. After all, this involves publicly traded stocks and commodities. Lately, however, it has been criticized as nothing more than gambling, pure and simple, yet the buzz around it is getting louder and the promise of easy money is attracting the attention of people from all walks of life. What is it, really, and is it something the ordinary weekend investor like you and me should even care aboutBinary is an apt adjective for this type of option. In programming parlance binary used to describe either of two states. 1 or 0. In the sports betting industry binary options are also popular win or lose. In other words, there are only two possible outcomes. There is some basis to this all or nothing description of binary options trading. Heres a short explanation of how it goes.Take the price of any asset at any point in time. You make an intelligent guess on whether this price will increase or decrease over a specific period of time and bet 100 that you guessed right. If you are you win back your bet and plus a pre-agreed amount. If youre wrong you lose almost all of your 100.Of course its not as simple as that. In fact, theres serious math behind binary options and people who engage in binary options trading, like all others involved in financial markets, are pretty confident that their numbers are better. Because in a single binary option trade, the outcome for the participants is also binary. One loses, one wins.First, there is an underlying asset, the future value of which becomes the basis for the trade. This asset can be the price of a specific companys stock. It can be a traded commodity such as gold. Recently, there was an industry filing at the Commodities and Futures Trading Commission to allow exchanges to offer binary options for future box office receipts of certain films.Second is the direction of trade. This is your guess of what the price of the asset will be at a specific point of time in the future and you make your trade based on whether this price will be above or below the current price at the time that the binary options contract was made. Third is, of course, the amount you wish to trade.Call option. The right to buy. In binary options trading, the purchase of an offer is an exercise of the option. In American exchanges this is termed as Finish High because the motivation behind a call is the probability that the price of the asset when the contract expires will be higher.Put option. The right to sell. This is also exercised when the offer to sell an option is taken. This is called Finish Low in American exchanges because a put is based on projections that the price of an asset will be lower when the contract expires.Essentially, options is a misnomer for these types of transactions. Lock (another type of derivative) would have been the more appropriate term because once the deal is sealed, both buyer and seller are obliged to comply with whatever conditions were agreed upon to take effect at the contracts expiry.One other thing to remember is that trading in binary options only involves the price of underlying asset, but not the asset itself. You might be trading binary options for the price of Google or Apple stocks or gold, but there is no assumption that the seller owns any of these assets or that that you will when the contract expires.Fixed risk and reward. Most binary options are Fixed Return Options (FROs) in which the gains and losses (the risk-reward ratio) are predetermined. You know exactly what youll earn should you be in-the-money, or what you would otherwise lose if you happened to be out-of-the-money. In a 100 trade, for example, many options offer a return of 81 for a successful trade. Many also offer to return 10 of the purchase amount should your trade be out-of-the-money.High level of sophistication. While easier to understand than most options, binary options still offer enough freedom for the application of sophisticated investment strategies. Investors in the forex market use binary options to hedge against their currency investments by investing in an opposite direction to their traditional forex position. Regardless of whether prices rise or fall, theyll have their losses covered or might even profit from their binary options position.Potential to profit from both falling and rising markets. In regular stock and commodity markets, money is made only when the price of the asset is rising. Binary trading allows an investor to absorb some of the markets risk and make money regardless of whether prices are falling or rising.Binary options can either be cash-or-nothing, where a fixed amount of cash is paid out. It can also be an asset-or-nothing option where instead of cash the value of the underlying asset is paid out. Aside from these basic types, there are other more exotic binary options that are a bit more complex but follow the same general concept.Barrier options are options that depend on a specific price level for their existence within the duration of the options contract. They can disappear (knocked out) or appear (knocked in) when a specified price level is breached.