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Making correct predictions is the only way to successfully trade binary options, and can only be done through proper research and analysis of assets.<br><br>If he or she thinks the price of an asset is going to go down, he or she would buy a Put Option. After doing so, he or she can then choose to buy an option according to that prediction. Expiry times are normally 1 day or less. If he or she thinks the price of an asset is going to go up, he or she would buy a Call Option. Quite simply, all an investor has to do is predict whether the price of an asset is going to go up or down. 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