A Binary Option is a type of trade with three possible outcomes – Win, Lose or Draw. The outcome is determined if the price of the underlying asset closes “in, out or at the money” at expiration. A Binary Options contract is based on an underlying asset, where the price, expiration, and payout are fixed at the start of the contract. Binary Options trading is one of the fastest growing segments of the Financial Industry because of its simplicity, defined risk and multiple daily trading opportunities.
When trading Binary Options all you have to do is predict whether or not the underlying asset will go Up or Down. If your prediction is correct, you will make a profit based on a percentage payout determined by the asset and expiry time. Expiry times vary from Broker to Broker but the most common are 60 seconds, 5 minutes and 1 hour.
Defined risk is one of the reasons why Binary Options trading is so popular. With low collateral requirements, traders can capitalize on opportunities in both volatile and flat markets. The risk involved in trading Binary Options is limited to the amount you decide to invest per trade. This is not the case when trading other Financial Products where you can lose substantially more than your initial investment.
Binary Options allows you to trade an array of different assets including stocks, currencies, indices and commodities in short-term expiration terms. Shorter-term expirations mean multiple trading opportunities exist every day
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Disclaimer: Trading of foreign exchange contracts, contracts for difference, derivatives and other investment products which are leveraged, can carry a high level of risk. These products may not be suitable for all investors. It is possible to lose more than your initial investment. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. A Product Disclosure Statement (PDS) is available from the company website . Please read and consider the PDS before making any decision to trade Core Liquidity Markets’ products. The risks must be understood prior to trading. Core Liquidity Markets refers to Core Liquidity Markets Pty Ltd. Core Liquidity Markets is an Australian company which is registered with ASIC, ACN 164 994 049. Core Liquidity Markets is an authorized representative of Direct FX Trading Pty Ltd (AFSL) Number 305539, which is the authorizing Licensee and Principal.
