If you are thinking that you don't even know what these are, not to mention how they are used, you will be relieved to find out that everything is rather simple: these are the simplest stock options, also known as "fixed income options".

The process is simple: you and your broker are not really purchasing a certain asset, as used in investments before. The investment consists in a type of prediction, as far as the activity of some binary options is concerned. Your broker will be given the possibility to select a fixed period of time and state your prediction on how its price will evolve. Depending on this course of events your investment can either raise or fail.

Another particularity about these options is the fact that you purchase them for a fixed period of time, this being the time that your prediction can either be accurate or not. Your broker will be able to have this information the moment you purchase it, this way you will be informed about the possibilities of the transaction from the very first moment!