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Reduce risks in trading Types of Binary Options Strategies Binary trading is fast paced with short expiry times. Trade duration varies from 60 seconds to days. With such short time, it is better to adopt active trading strategies.

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Let us take them one after the other. Expiry times can be as low as 5 minutes. How does it work? First, the trader sets two price targets to form a price range.

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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. Strategies that you will read will be easy to understand for you and will give you a good base for your future trading expirience.

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The Bottom Line Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That's why they're called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time? Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade.

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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? If so, you can make substantial profits with one of the most straightforward financial instruments to trade. But what exactly are binary options, and what are their benefits and drawbacks?

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The easiest way to explain what a binary trade looks like is to provide an example. A binary trade means you place a bet on that theory. You can use this to read price action and find trading opportunities. Not all binary option brokers offer rebates on trades that finish out of the money.

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Your view will need to pan out within the lifetime of the binary optionor it may expire worthless. Other variants of the binary option are one-touch and double-touch binary options. These options either payout or cease to exist as soon as the market touches either 1 or 2 preestablished trigger points respectively. Since binaries are derivative financial instruments typically used for short-term speculation rather than for long-term asset appreciation, they tend to suit traders more than investors.

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