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§ 1.3 Benefits of binary options trading

Плюсы торговли бинарными опционами

What is an option? In trading it is a contract which entitles you to sell something in a certain period of time. Binary options are options which yield you profits based on the “all or nothing”, “yes or no” principle. That’s why they are called binary options. To put it simply having made a correct forecast for a binary option to be purchased you get a predetermined profit. If your forecast fails you don’t get anything.

The practical application is simpler. For example, you are offered to place $10 eur/usd call option. In other words you place a “bet”.  On execution of the trade, the bet amount which equals $10 is deducted from your balance. The remaining balance will then depend on whether your option will win or lose. If it wins then you’ll make a profit depending on conditions specific for your option. If it loses then you earn nothing and lose the money you spent for the purchase of the option or placing the “bet”.

§ 1.4 Payout requirements in options trading →