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Finance Magnates Telegram Channel Classified as exotic options, binary options is a type of financial derivative that offers traders a fixed return on their investment if it expires in the money or nothing at all if the option expires out of the money. It is important that the trader understands all the risks involved in trading this often misunderstood financial instrument What makes binary options truly attractive to traders is their simplicity. An investor in binary options only has 2 main factors to worry about, the direction of the price movement and the expiry time.

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You can see here five strategies that you can apply to binary options even if you are novice trader. There are also better, highly efficient strategies but they require much more knowledge and expirience from the market that is why they are not recommended for traders that are new to this.

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Binary Options Trading Risk Management Even if you are new as a binary options trader, it is a good idea to use a binary options strategy for your trades so you can improve the accuracy of your trades. Binary options strategies for beginners can be as simple as identifying a certain trend for a particular financial asset or using a defined strategy, such as a hedging strategy. Let Unifunds teach you the strategies that you can use when first starting out as a trader in binary options.

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Types of Binary Options Trades You will first need to understand all of the many different types of Binary Options trades that you are going to be able to place. This is even before you find a Broker at which to sign up to.

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What is the Best Binary Options Broker? Binary options trading hinges on a simple question — will the underlying asset be above or below a certain price at a specified time?