There are substantial differences between binary options trading and an regular trading. Under ordinary trading you actually own the asset and can hold it for any time you want. Under option trading, you are really trading on the variances of the asset. For instance, when you do option trade in Microsoft, you are really not owning the shares of the firm but producing a contract whether or not the price of Microsoft’s stocks are to go up or down at the end of this expiry period. The correctness to which one can make the conjecture after studying the price activity from the security can help in making profit or losses for the trader.
