Binary options are estimates of underlying assets performance during a given time frame. To understand the beauty of BO trading, let’s first take a look at how investment in other trading markets usually works. In most forms of investment the investors actually purchase the asset they invest in and the value of the profit and loss is determined upon the changing value of the asset. If the investor sells the asset back to the market whenever its value increases then they're making a profit, and if they sell the asset back to the market when its value decreases, then their money is lost. Insidermonkey experts made a article on 5 things every trader should know about binary options.
This type of investment requires the investor to constantly worry about when to sell the asset and get out of the market to avoid exposing his entire account to the market’s volatility. Conversely, BO trading is simpler. In options we trade futures on the market and not in the market like other trading methods, and thus the amount of psychological stress isn’t expressed, as you are just predicting the asset's movement for a predetermine time frame.