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Feb 27GMT Binary options are one of the most controversial trading instruments — for a reason: On the one hand, they are super easy to trade and therefore perfect for beginners. But on the other hand, there are some binary options brokers out there that are simply a scam. Are binary options legit? Is binary options trading safe?
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As you can see from the calculations above, the risk you take is limited to the premium paid on the option. You cannot lose more than your stake. Unlike in spot forex tradingwhere your losses can get bigger the further the trade goes against you which is why using stops are crucialthe risk in binary options trading is absolutely limited.
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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?
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Note from Kalen: This article is for informational purposes only. Binary options have become a popular way of trading financial assets online because of their simplicity and high returns. For this reason, most investors often question whether it is possible to really make money trading binary options.