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Binary Options Are A Simple Method To Trade Price Fluctuations In Multiple Global Markets

By Expert Author: Randall Oberson

Binary options are different from traditional options. If traded, one will find these options have different payouts, fees and risks, not to mention an solely different liquidity structure and expense method.

Binary options traded outside the U.S. are also typically structured differently than binaries out there on U.S. exchanges. When considering speculating or hedging, binary options are an alternative, but only if the trader fully understands the two potential outcomes of these "exotic options." In June 2013, the U.S. Investments and Exchange Commission warned investors about the potential challenges of investing in binary fleur and charged a Cyprus-based producer with selling them illegally to U.S. investors.

What Are Binary Options?

Binary options are classed as exotic options, yet binaries are quite simple to utilize and realize functionally. The most common binary option is a "high-low" option. Providing access to accumulation, indices, commodities and foreign exchange, a high-low binary option is also called a fixed-return option. This is because the option has an expiration date/time and also what is called a strike value. If a trader wagers correctly on the market's direction and the price at the time of expiry is on the correct side of the strike price, the broker

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