The Forecast or Prediction in Binary Options
The job of a binary options trader is to determine in which direction the price of an asset will move before or at the time of expiration. For the simplest binary options trades, the forecast will be based on whether the price at expiry will be higher or lower.
The trader will purchase a Call option if he believes the price will close higher or a Put option if he believes the price will fall. A correct prediction will result in a return of 71-88% on investment – nearly double the original stake.
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