Binary Call Option

A binary call option is a contract that gives the holder a specified amount if the underlying asset is above the strike at expiration.

* The best way to make a high return is to trade on options that expire within one hour. This way you minimize your risk and have a better chance of forecasting correctly. If you want to make a high return on your investment within one hour, pick an option that will expire within one hour and bid close to the expiration time.
* In order to hone your forecasting skills, read the news daily and keep track of current events. Follow finance news sites like Google News, Yahoo Finance and other notable news sources. Also pick a few niche blogs about binary option trading.

A binary call option is the opposite to a Binary put option,A binary call option is used when the trader believes the he should buy on the belief that the asset price is going to go up. A trader will buy a call contract when he perceives there to be a bull market and/or has a long strategy. A binary call option will settle on a predetermined fixed cash settlement at contract expiration if the expiry price is at above or equal to the strike price . If the strike price is below the expiry price then there will be no payout.
The value of a European binary call option, paying $1 if the underlying asset is above the strike at expiration, in the Black-Scholes world is

e^{-r(T-t)}N(d_{2})

Trading binary exotic options requires a keen understanding of option trading. It is a trading technique used by institutional investors that creates payoffs by being conditionally right or wrong about the direction of a trade but does not reward the absolute degree of correctness.