The most common type. Traders predict whether the asset price will be higher or lower than the current price at expiration. A correct prediction yields a payout.
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The simplicity of binary trading often comes at the cost of flexibility—there’s no leverage, partial closing, or advanced order types.
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While binary options share similarities with gambling—such as fixed outcomes and quick results—they are not inherently gambling.
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Binary options are time-based trading contracts where you predict whether the price of an asset will go up or down relative to a fixed level — known as the strike price
Binary options are a type of financial derivative that let traders speculate on the price direction of various assets, click here including stocks, currencies, commodities, and indices. The term “binary” comes from the two possible outcomes of a trade:
Traders simply decide whether the asset’s price will be above or below the strike price when the trade expires. If the prediction here is correct, you receive the fixed payout. If not, you lose your investment for that trade.
Regulation plays a critical role in ensuring transparency, fairness, and security in the binary options market. Trading with a regulated broker means you’re protected by laws that are designed to prevent fraud and promote responsible financial practices.
In many jurisdictions, binary options are lightly regulated or not regulated at all, increasing the risk of scams and fraudulent brokers.
With expiration times starting from as little as 60 seconds, traders can see get more info fast outcomes and take advantage of short-term market movements.
South Africa’s regulatory body for non-banking financial services. It oversees binary options brokers serving the African market, promoting fair practices.
While both binary options and traditional options enable traders to speculate on asset price movements, they differ greatly in structure, risk, and strategy. Understanding these differences is crucial for choosing the right trading approach.
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