The most common type. Traders predict whether the asset price will be higher or lower than the current price at expiration. A correct prediction yields a payout.
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One of the first regulators to license binary options brokers. CySEC regulation falls under EU financial laws, offering a solid legal framework for European traders.
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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
Understanding the various types of binary options can help traders choose contracts that best match their market outlook and risk tolerance:
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.
Regulation plays a critical role in ensuring transparency, fairness, and security check here in the binary options market. Trading with a regulated broker means you’re protected by laws that are designed to prevent fraud and promote responsible financial practices.
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Clear Risk and Reward: Your potential loss is limited to your initial investment, and more info potential profit is known in advance.
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Traders always know their potential profit and loss before entering a trade, making risk management easier and more here transparent.