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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The simplicity of binary trading often comes at the cost of flexibility—there’s pelo leverage, partial closing, or advanced order types.
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While binary options share similarities with gambling—such as fixed outcomes and quick results—they are not inherently gambling.
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After execution, track the trade’s progress on your platform. Some brokers may allow early closure to secure a profit or limit losses—use this feature wisely.
Understanding the various types of binary options can help traders choose contracts that best match their market outlook and risk tolerance:
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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 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.
Traders always know their potential profit and loss before entering a trade, making risk management easier and more transparent.