Key Concepts

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Binary options are a simple and straightforward financial instrument that allows traders to speculate on the price movement of a wide range of assets, including stocks, currencies, commodities, and indices. However, before traders can begin trading binary options, it is important to understand the key concepts that underpin this financial instrument.

Call and Put Options Binary options offer traders the ability to buy a "call" option or a "put" option. A call option is purchased when traders believe that the price of an asset will rise, while a put option is bought when traders expect the price of the asset to fall.

Expiration Time All binary options have an expiration time, which is the predetermined time at which the option will expire. This can range from minutes to weeks, depending on the trading platform and the asset being traded.

Strike Price The strike price is the price at which the option can be exercised. This price is set at the time the option is purchased and remains fixed until the option expires.

In the Money, At the Money, and Out of the Money When the option expires, it will be "in the money" if the price of the asset has moved in the direction predicted by the trader. If the price has not moved, the option will be "at the money." Finally, if the price has moved in the opposite direction, the option will be "out of the money."

Payout The payout for a successful binary options trade is predetermined and varies depending on the trading platform and the asset being traded. If the trader's prediction is correct, the payout will be made at the expiration time.

Understanding these key concepts is essential for any trader looking to trade binary options. By having a solid grasp of these basic principles, traders can make informed decisions and develop effective trading strategies.




الفئات (الأقسام) في موقع ميدياويكي حول الخيارات الثنائية, 二元期权, बाइनरी विकल्प, opções binárias,binêre opsies , tùy chọn nhị phân , δυαδικές επιλογές, ორობითი ოფციები, binære optioner, ongakhetha kanambambili , אופציות בינאריות,


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