Binary options are one of the simplest trading instruments available. You predict whether a price goes up or down. If you're right, you earn a fixed payout. Here's everything you need to know.
A binary option is a financial instrument with exactly two possible outcomes at expiry: you either win a fixed payout, or you lose your stake. The name "binary" comes from this two-outcome structure — it's either yes or no, win or lose.
Unlike traditional trading where profit depends on how far the price moves, binary options pay the same fixed amount regardless of whether the price moved $1 or $1,000 in your direction.
Every binary options trade on f1option works the same way:
Suppose Bitcoin is trading at $67,420. You stake $50 on RISE with a 1-minute expiry and a 70% payout.
If Bitcoin is above $67,420 after 1 minute: you win. Your account receives $50 + 35 = $85.
If Bitcoin is at or below $67,420 after 1 minute: you lose the $50 stake. That's the maximum you can lose on any single trade.
The price at which your trade opens. This is the reference point — your prediction is whether the price will be above or below this level at expiry.
The duration of your trade. On f1option, you can choose from 30 seconds to 15 minutes. Shorter expiries mean faster results but more volatility.
The percentage you earn if your prediction is correct. On f1option, payouts go up to 70%. This is shown before you confirm the trade — there are no surprises.
The maximum you can lose on a single trade is your stake. You cannot lose more than you put in. This makes binary options a defined-risk instrument.
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