How does Binary Options work?
A binary option trade is win or lose proposition. Binary traders in United Kingdom can purchase options that predict whether the underlying price of an asset will go “up” or “down” over a set period of time. If their prediction is right, the trade will be considered “in the money”, and the Brits trader will be paid a set amount. If there prediction is not correct, the trader will not be paid anything.
Binary options trading is really not Forex, but many British consider it to be a good alternative. The assets that are available to trade in UK are much the same. They include commodities such as gold, currency pairs such as GBP/USD, and stocks. There can also be some benefits to it, such as low minimum deposit requirements, and no commissions or spreads.