Binary options trading, as the name suggests, is where the trader is to choose between one of two options. This means that they will either definitely win or lose. Unlike many other trading systems where the payoff is a continuous value, binary options offers the trader a fixed amount of payoff in the event that his or her option is what actually happens. For example, if you bid one hundred dollars that the value of a certain company will rise, then if you win you get a preset percentage of your investment regardless of the size of the move that the company has made. Binary options trading is common in financial markets and is mainly practiced in forex and stock exchange.