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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.

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Predicting if a currency pair would be above or below the strike price before it expires pays the lowest return. It is the simplest and most common type of binary option. Easy enough, eh?

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Binary options is becoming a very exciting world, replete with choices. Intra-day trading used to be all that was offered by the majority of brokers, but that is starting to change with the integration of Long Term trading.

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Some brokers will only offer you that most basic type of trade, but others such as 24Option provide a number of different trade types. Being able to trade in different ways is both fun and useful. But it also allows you to approach the market in new ways and to become profitable during different market conditions, which is extremely useful if you are trading for profit.

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The wide choice offered caters to different types of trader profiles and risk sentiment. Understanding the different types of binary options is essential for a trader before they blindly start trading one of the many types of options that are available.

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Once the trigger level has been reached, the trader will receive his payout. This type of option is preferred when an investor is sure that the assets price will perform a strong move in a certain direction and will hit the trigger value, disregarding whether the price jump is sustainable or the market will retrace. Unlike the standard binary option where you only have to predict whether the price will go up or down, here both the direction of movement and the trigger level are predetermined some brokers allow traders to set these levels.

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Main Types of Binary Options Many binary option traders started off trading with the common high-low binary option. Once they are more experienced, many binary option traders will look to more advanced types of options to get an edge on the market.

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