how to trade binary options binary options are a trading instrument that offers a guaranteed return for the correct prediction of the direction of an asset's price within a selected time frame binary options trading offers High profitability which may reach 99% on the IQ option platform when trading binary options Traders predict where the price of various assets such as stocks Commodities currency pairs or indices will move the prediction relates to the closing price of an asset whether it will be higher or lower than the opening price a bu position known as a call option will result in a profit if the closing price is higher than the opening price a sell position known as a put option will result in a profit if the closing price is lower than the opening price in the case of the wrong prediction a Trader will lose the entire amount invested into the trade here is how it works Jimmy has been watching the price of gold for a month and he believes the price of gold will exceed $1,250 by the end of the week with standard investing Jimmy would have to purchase gold or gold Alternatives such as a gold ETF or Futures Contract however with binary options Jimmy can predict whether or not the price of gold will go higher than $1,250 by the end of the week without having to acquire this precious metal in the IQ option trade room Jimmy can choose the assets to trade by clicking the plus sign in the upper panel next he should choose an expiration Time by clicking the time button in the right hand side panel the selected expiration time is shown on the chart by the solid red line the dotted line on the chart is the purchase deadline up to this time Jimmy can buy multiple options of the same asset in any direction then he should enter an amount to be invested by pressing the amount button below the time button after a long analysis Jimmy believes the price of gold will go above $1,250 by the end of the week so he decides to invest $100 into buying a gold binary option at an opening price of $1,250 and presses the higher button to open a position contrarily if he thought the price of gold would go lower than $1,250 by the end of the week he would do the opposite sell a $100 gold binary option at an opening price of $1,250 by pressing the lower button on the IQ option platform the percentage of profit is available immediately when choosing an asset or selecting an expiration time Jimmy chooses an expiration time which has a profitability rate of 66% by the end of the week after the transaction crosses the red line and expires he will see his result either a green window with an amount of profit if the prediction was correct or a red window with an amount of loss if the prediction turned out to be wrong let's fast forward to the end of the week Jimmy's prediction turned out to be correct and the price of gold reached $1,300 in this case Jimmy's trade resulted in a profit of $66 plus his initial investment of $100 was returned to his account balance in binary options trading it doesn't matter how significantly the price changes if the closing price is equal to the opening price your initial investment in the deal will be returned to your account have a nice trading experience