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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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Expiry Time: The length of the trade — it could be as short as 60 seconds or as long as several hours or days.
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Traders simply decide whether the asset’s price will be above or below the strike price when the trade expires. If the prediction is correct, you receive the fixed payout. If not, check here you lose your investment for that trade.
Regulation plays a critical role in ensuring transparency, fairness, and security in the binary options market. Trading with a regulated broker means you’re protected by laws that are designed to prevent fraud and promote responsible financial practices.
In many jurisdictions, binary options are lightly regulated or not regulated at all, increasing the risk of scams and fraudulent brokers.
With expiration times starting from as little as 60 seconds, traders can here 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.
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