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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Many platforms allow low minimum deposits and small trade amounts, making it easy for new traders to get started without large capital investments.
Selecting the right broker is one of the most important decisions you’ll make as a binary options trader. A reliable broker not only enhances your trading experience but also helps protect your capital and data. Here are the key factors to consider:
Expiry Time: The length of the trade — it could be as short as 60 seconds or as long as several hours or days.
That said, treating binary options like a game of chance—trading impulsively without analysis—does make it gambling. Conversely, applying solid trading strategies, using proper analysis, and managing risk turns it into a legitimate form of speculative trading.
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
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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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