In binary option trading, “Call” and “Put” options are the two basic choices a trader can make when predicting the price movement of an underlying asset such as currency pairs, stocks, or commodities. A Call option is chosen when a trader believes the price of an asset will rise above the current level by the time the option expires. Essentially, the trader is “buying” the opportunity to profit from upward price movement. If the prediction is correct, the trader earns a fixed return, usually between 70% and 90% of the invested amount.

On the other hand, a Put option is selected when the trader expects the price of an asset to fall below its current value before expiry. This means the trader is anticipating a downward move and will gain a profit if the asset closes lower than the strike price.

The simplicity of choosing between “Call” and “Put” options makes binary trading appealing to beginners, as outcomes are clear—either the trader wins a predetermined profit or loses the invested amount. However, while the concept sounds straightforward, success depends heavily on market analysis, timing, and discipline. Understanding how market trends, volatility, and economic data affect asset prices is essential for making accurate predictions and managing risk effectively in binary option trading.