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What are binary options and how do they work?
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Người gửi:  jonsmaradona [ Thứ 7 08/07/23 17:00 ]
Tiêu đề bài viết:  What are binary options and how do they work?

A binary option is a financial instrument that turns every trade into a simple yes or no question – you decide whether a market is likely to be above a certain price, at a certain time. If you think it will be, you buy. If you think it won’t be, you sell. When you place an order for a binary option contract, you are speculating on the market rather than buying a share of the underlying market. The price is always between $0 and $100.

A binary option is a fast and extremely simple financial instrument that allows investors to speculate on whether the price of an asset will go up or down in the near future, for example, the stock price of Google, the price of Bitcoin, the USD/GBP exchange rate, or the price of gold. The time span can be as little as 60 seconds, making it possible to trade hundreds of times per day across any global market. Before you place a trade you know exactly how much you stand to gain if your prediction is correct, usually 70-95% – if you invest $100 you will receive a credit of $170 – $195 on a successful trade.

This makes risk management and trading decisions much more simple. You also know exactly how much you will lose on a single trade. The outcome is always a Yes or No answer – you either win it all or you lose it all – hence it being a “binary” option. The risk and reward are known in advance and this structured payoff is one of the attractions. Exchange-traded binaries are also now available, meaning traders are not trading against the broker.

To get started trading you first need a regulated broker account (or licensed). Pick one from the recommended brokers list, where only brokers that have shown themselves to be trustworthy are included. The top broker has been selected as the best choice for most traders. If you are completely new to binary options you can open a demo account with most brokers, to try out their platform and see what it’s like to trade before you deposit real money.

vfxAlert application is the best instrument for binary options trading. In one window together with the platform, the trader will find the full range of analytical instruments: direct binary signals, online charts, trend indicators, market news, and signals history. vfxAlert has an intuitive interface that provides convenience for both novice traders and professionals.

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