Binary options trading is a once-popular trading method that, due to questionable broker ethics, has fallen into disrepute. Betex is a blockchain-powered binary options trading platform intent on bringing transparency to the practice.
Binary Options Trading
Binary options trading is a derivatives market (performance-based) option that is considered more exotic than vanilla options such as bond and employee stock options. With binary options trading, traders predict the direction of an asset’s price level, i.e. whether the price will go up or down and to what amount.
Let’s consider an asset like gold. Currently trading at US$1,258.10, a binary options trader could predict that gold will hit a strike price of US$1,300 by this time next week. The trader then buys a binary option token to this effect. Should this prediction come to fruition, the trader will have made a profit by receiving the original sum invested, plus a 70-85 percent return. If, however, gold does not reach the…