Binary trading, also known as binary options trading, is a financial instrument where traders predict whether the price of an asset will rise or fall within a specified time frame. Here's how it works:

1. Choose an Asset: Binary options can be traded on various assets, including stocks, currencies (forex), commodities, and indices.

2. Select an Expiry Time: Traders need to decide on the expiry time for their binary option. This could be as short as a few minutes or as long as several months, depending on the platform and the trader's strategy.

3. Predict Price Movement: Traders predict whether the price of the chosen asset will go up or down within the selected time frame. If they believe the price will rise, they buy a "call" option. If they expect the price to fall, they purchase a "put" option.

4. Place the Trade:Once the prediction is made, traders place the trade by selecting the amount they want to invest and confirming their prediction.

5. Wait for Expiry:After placing the trade, traders wait for the expiry time. If their prediction is correct at the time of expiry, they receive a predetermined payout. If their prediction is incorrect, they lose the initial investment.

It's important to note that binary options trading carries significant risks, including the potential loss of the entire investment. Additionally, some jurisdictions have placed restrictions or outright bans on binary options trading due to concerns about consumer protection. As with any form of trading or investment, it's crucial to thoroughly research and understand the risks involved before participating.