One of the main the advantages of binary options is, that the right to sell or buy options lies with the trader and not the seller. Unlike traditional trading where you have to buy or sell assets, you predict the price of the asset for a certain period in binary options. It is the ability of the investor to predict the right direction which makes a trade successful. Although, this trading tool is quite simple to understand, you cannot make successful trades for a long time by only having the basic knowledge of the trade. If you study the history of the asset you want to trade, you will find due to which trends the price of the asset had seen a rise and what factors are responsible for its fall. This will help you in taking the right decision while trading.
In binary options ‘a call’ option is placed expecting a rise in the price of the said asset. In order to make the trade more advantageous, you should have clear idea about a rise and fall in its price. So it becomes important for you to be sure about the price direction and only then place a call option. Many traders enter the markets only when they see that the asset is going in a particular direction. Binaries are traded in two ways a call option and a put option but generally investors go for call option as this gives them leverage. If the price of the option goes up even by a pip, the option is considered as in the money giving the trader his fixed profit.