Binary option traders can invest in prices either going up or going down, or staying within a certain range or reaching a present value. These variations, all represent examples of binary option trading.
Trading normally refers to the longer term, which is when the payout level becomes much more important. The payouts can vary from 65-95 percent, with some elaborate options going even higher. It is important to check though, as the payouts can vary from broker to broker.
The expiry time of an option can also have a big effect on the payout of the asset. The differences in money can be significant, so if traders are looking at using binary options in the long term, it is important that they shop around to find the best payout for the asset class or classes that they intend to trade. Although it can seem like an unnecessary step, it is important, and will make a huge difference to the trader in the long run.