Both are options, but there are quite a few differences between standard options and binary options, including with respect to the duration, the disbursement, the investment required and the options during the term of the option.
Let us to get a clearer picture of the two types of options first look briefly at what is a standard option and a binary option. Go to this page to trade directly.
Two types of standard options, the call option and the put option.
Call option: This option gives the right to buy an instrument at a predetermined price. Increases the price of the instrument than the call option is worth more because you have the right to buy at a lower price.
Put option: This option gives the right to sell an instrument at a predetermined price. Decline in the price of the instrument, then the put option worth more because you have the right to sell at a higher price.
For example, you think that the price of Shell will rise and take a call option on 100 shares of Shell at an exercise price of € 27, with the expiration date of the option is about three months. Because the price is currently € 26 euro, you would now have nothing to 100 shares for € 27 to 'allowed' to buy. But suppose the price in the next three months rose to € 29, you would therefore have the right to still be able to buy 100 shares for € 27, even though the actual rate at that time € 2 higher.
A binary option gives the right to a predetermined payout if the option 'in the money' is when you have the expiry date. If the binary option was "out of the money at the time of expiration of the term, then get the option holder nothing. (for more information about binary options)
You can include close binary options on stocks, commodities and currencies. As with standard options you can use binary options both decrease as increase of the instrument (eg share) speculate. With a call option you speculate on a rise in the price, with a pit on a decline.
Differences between binary options and default options; Now we have a nice picture of the nature of the two options, the differences are between them clearly.
Conclusion; Standard options and binary options offer both possibilities. The default option is ideal for hedging (protection against exchange losses) and speculate on price movements in the (medium) long term.
Binary options provide the ability to starting small amounts quickly and easily respond to intra-day price movements of a large number of instruments, which undoubtedly contributes to the rapidly rising popularity of binary options under active investors.