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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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Resources for Victims Binary Options Fraud Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. Investors should be aware of fraudulent promotion schemes involving binary options and binary options trading platforms. What is a Binary Option?

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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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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?

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Demo account? They also allow you the rare opportunity to sell your contract before the expiry time to lock-in profit or minimize your loss.

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Disclaimer: Transacting in Forex, CFDs and virtual currencies is subject to various risks, such as price volatility, and is therefore not suitable for everyone. Your capital is at risk. You can use cards, e-payments, wire transfers, and cryptocurrencies to make deposits in your trading account. Pocket Option also provides an initial bonus when you deposit money.

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