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What is binary options trading?

Binary options trading is a type of financial trading where you predict whether the price of an asset will rise or fall within a certain time frame. The concept behind binary options is straightforward: you either receive a fixed return or lose the entire investment, hence the term “binary.”

Is binary options trading risky?

However, it's important to note that binary options trading carries even more risk than traditional options trading. A typical option is a contract between two parties that secures for the option buyer the right, but not the obligation, to buy or sell a quantity of an underlying asset at a specific price within a set amount of time.

What are the three binary options trade outcomes?

Sometimes, three binary option trade outcomes exist: You lose, win, or get the money back when the market strictly hits the strike price. Binary options are a simple trading product with limited risk. There are only two ways to trade them: call options and put options.

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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