Binary options involve making predictions about whether the value of an asset will rise or fall in a set period of time. Traders select "call" or "put" options based on their prognosis, and can expect to risk only the amount invested on each trade. There are four main types of binary options: high/low, touch/no touch, boundary, and 60 second trades. Strategies like the bullish/bearish, money management, and boundary approaches can help traders earn profits, but knowledge of how binary options work and choosing a reputable broker are also important factors for success.