Binary options came about around the year 2008 and are a relatively new tool which is used for small investment vehicles. Investors are given the option to receive a percentage of the investment or a fixed return if trading was carried out successfully and correctly.

There are four asset sections for investments which include currencies, indices, stocks and commodities. The purpose of these investment sections is to allow small investors to invest as many are unable to invest in the standard way due to significantly high initial investment requirements.

Binary options allow more and more people to invest in shares at a much lower cost. Small investors have always been able to trade in stocks and binary options have helped reduce the high price of stock thus giving small investors the chance to do business. Binary options can be purchased through a broker who will help investors understand the options by separating the four categories and adopting a user friendly interface. Each category will have links making them easy to understand and follow.

The advantages of trading in binary options are many but the main one is perhaps that they offer a pretty good return on investment. The basic outline of how binary options work is also relatively easy to understand and they are completely accessible to the average investor. In addition, binary options are a clever way of trading as they can minimise loss on investment.