The fixed return structure means that even if the asset moves significantly in your benefício, your profit is limited to the predefined payout.
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The simplicity of binary trading often comes at the cost of flexibility—there’s no leverage, partial closing, or advanced order types.
Underlying Asset: The financial product you’re trading, such as a currency pair like EUR/USD, a commodity like gold, or an index.
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Binary options are time-based trading contracts where you predict whether the price of an asset will go up or down relative to a fixed level — known as the strike price
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Traders simply decide whether the asset’s price will be above or below the strike price when the trade expires. If the prediction is correct, you receive the fixed payout. If not, you lose your investment for that trade.
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In many jurisdictions, binary options are lightly regulated or not regulated at all, increasing the risk of scams read more and fraudulent brokers.
With expiration times starting from as little as 60 seconds, traders can see fast outcomes and take advantage of short-term market movements.
South Africa’s regulatory body for non-banking financial services. It oversees binary options brokers serving the empresa de muudancas African market, promoting fair practices.
While both binary options and traditional options enable traders to speculate on asset price movements, they differ greatly in structure, risk, and strategy. Understanding these differences is crucial for choosing the right trading approach.
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