Binary options trading is a lot like forex trading. You do not have to buy or sell anything here. Here you have to trade by analyzing whether the price of a pair or stock will increase or decrease at a certain time.
Suppose you analyze the EUR / USD pair and find out that the price will go up and you put the order at 1.00913 in the 5-minute option at 12.00 at the time of the platform. And if the price goes down, you will lose. Hope you understand.

You basically predict the result, and there are just two possibilities, hence you either get to win or lose. If you manage to predict the outcome correctly you will receive a fixed payout, but if not you will just lose your initial stake, so there is the advantage that you can actually limit your possible losses by limiting your stakes. You can take both short and long term positions.