This indicator shows that 45% of trader have bought Calls, or think the EUR/GBP will rise. 55% believe the price will fall and have bought Puts.
Major Considerations
Binary options are quite simple once you have played around with a demo account for a few minutes. You can type in the amount you want to trade and the trade screen will typically show you much you will win or lose depending on whether you are correct or not.
This simplicity can be misleading though. You are still trading a financial asset, and as such there are financial risks. While the risk is limited on each trade to the amount you place on the trade, a string of losses can result in a significant loss of capital or the account being cleaned out. To help preserve capital one of the most important things to learn is how to determine your position size on each trade. Before you begin trading you also want to write down a trading plan which details how, why and when you will trade.
With binary options you can nearly double your money quite quickly, with returns sometimes up to 80% or more. But in most cases your risk is always greater as typically you will lose 100% of the dollar amount placed on the trade if you are wrong. Therefore, you must be right more often that you wrong; typically you will need to be right about 55% to 60% of the time to breakeven.
Take figure 4 for example. The payout is 80% on your capital (and you receive your capital back, so they say 180%)
A call has been selected, and $100 wagered. If the trade ends up profitable, I will receive an additional $80 but if there is a loss the $100 is gone. If you win 6 trades betting $100 you will make 6x$80=$480 minus the $400 you lost on the 4 losing trades (4x$100), so you net $80. If you only win 5 times (a 50% win rate), you make 5x$80=$400 on your winning trades, but lose $500 on your losing trades (5x$100) giving you net loss of $100.
Therefore, before you trade binary options take time to prepare strategies which have a high winning percentage. Then test those strategies on a demo account before using real money. Only when you are making consistent returns on the demo account, over a several month period, should you begin trading real money.