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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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The Cup and Handle Pattern Trade Duration To put it into perspective, lets use an example note that all values presented in the example are completely arbitrary and dont represent real prices or returns. Lets say Googles stock price is USD 1, at and you believe it will be lower in However, the stock price commences a slow but seemingly steady rise and its USD 1, atstarting to slowly decline. You think that there is no way that it will be below USD 1, bybut there is maybe a chance of that happening at around

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Spread 0. Conversely, if they think the price will go down, then they have to execute a put option. In most cases brokers will give you the opportunity to choose between hourly, daily and weekly expiry, but some brokers also offer second options which allow you to quickly execute trades with an expiration time of just one minute.

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Regulation and fraud[ edit ] Further information: Securities fraud Many binary option "brokers" have been exposed as fraudulent operations. Manipulation of price data to cause customers to lose is common. Withdrawals are regularly stalled or refused by such operations; if a client has good reason to expect a payment, the operator will simply stop taking their phone calls. Provincial regulators have proposed a complete ban on all binary options trading include a ban on online advertising for binary options trading sites.

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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?

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Dukascopy binary trading platforms are designed only for manual trading by the client. Use of any robots, spiders or other automated data entry system for submission of orders is expressly prohibited. Contracts duration and timing Binary options and Touch Binaries can only be traded intraday.

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