Binary option

A binary option is a way of trading in which you have to decide if a stock (the asset) will go up or down in a specific period of time. If you think the asset will go up in that period, you would buy a "call" option. If you think it will go down, you would buy a "put" option. After the period is complete, if your prediction was correct, you will get money, but if your prediction was wrong, you will lose the amount of money you put in.