So, what exactly is binary options trading? An easy way to invest and earn great profits; is binary options trading. Binary options trading has definitely attracted millions of people’s attention in the recent times for its convenience of trade and easy to execute strategies. What binary options trading involves Binary options trading is a simple trade of yes or no, in or out, all or nothing and 1 or 0. You have only two options to choose from and the entire binary options trading revolves around those two options. These two options are called “call” and “put”. Both options have their own meaning and function in binary options trading. Let us give you a little understanding of both the options and where to use them when trading your binary options. The “Call” Option When you start with binary options trading, call option is the first one that you should know. Call option means that you are buying a betting option in anticipation of prices to rice for the underlying asset, commodity or stock. It means, you will choose the call option in binary options trading when you have figured that market conditions are going to take the prices of the underlying asset higher. By underlying asset we mean the asset that you are trading your options on during binary options trading. The “Put” Option Put option is the opposite of call options in binary options trading. You buy this option when you are expecting the price of a commodity, asset or stock to fall within the specified time. After reading the market conditions and complete evaluation, if you think that market of an underlying asset will go down, you can buy the put option. If the underlying asset really moves in the direction as you predicted, you have started your successful journey in binary options trading. The Strike Price When you are buying an option, either call or put, you have to predict a price of the underlying asset within a specific time period. This predicted price from you is called the strike price in binary options trading. If you are to select the put option, you will bet on a strike price that is lower than the current market price of the asset and while selecting call option, you will select a strike price higher than the current market price of the asset. The Expiration/Expiry Of course, when you are in binary options trading, you are bet on short-term options. Secondly, you will be predicting the strike price within a specified date range and that’s the beauty of binary options trading. You have to specify the strike price within a specific date range i.e. hour, day, week, month, which means less wait and higher probability of getting the strike price right. The duration that you decide for strike price in binary options trading is called the expiry. You can exercise any rights entitled to you with your option within this expiration.