Binary options offer a great venue for day traders as well as for those whom wish to hedge other more “traditional” positions. Relatively easy to access via several online brokers, the key to understanding and earning money with binary options is to become familiar with how their payouts are structured. In order to accomplish this, one must first understand that there are only two possible outcomes with binary options. When they expire, they can either conclude by being “in the money” or “out of the money” in relation to the strike price of the underlying asset. This means that the holder of the position will either earn a payout equal to the fixed amount determined at the point of entry for the trade, or nothing at all. In this infographic, you’ll learn what it all means!
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