Too Long; Didn't Read
Binary options are “bets” that can be made on share prices, foreign exchange movements, markets, or economic events. A simple example would be to bet on the share price of a company; you could take out a binary option saying that a company will be trading above its current price in an hour. If you’re right, you get a payout. If you’re wrong, then you lose the entire sum of the investment.
Binary options are always short-term. A typical contract will be for an hour or so into the future, though they could range for as long as a few months.
One of the appeals of binary options is that they are very easy trades to understand and make. You don’t need to be a particularly skilled or experienced investor to take out a contract. On the other hand, successfully picking the short-term movements of stock prices, or whatever else you’ve placed the “bet” on can be exceedingly difficult, even for professional investors.