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Most binary options trading occurs outside the United States. Binary options set a fixed payout and loss amount. Binary options don't allow traders to take a position in the underlying security. Binary options depend on the outcome of a "yes or no" proposition. Traders receive a payout if the binary option expires in the money and incur a loss if it expires out of the money.

Movement in the underlying asset doesn't impact the payout received or loss incurred. Binary options differ in that they don't provide the possibility of taking a position in the underlying asset. Binary options typically specify a fixed maximum payout, while the maximum risk is limited to the amount invested in the option.

BinaryTrading.com is not licensed or registered as a financial consultant or adviser. BinaryTrading.com is neither a broker, nor funds manager. Binary options trading involve risk. By browsing this website you express your acceptance of the terms of this disclaimer and that BinaryTrading.com cannot be deemed responsible for any losses that may occur as a result of your binary option trading. Although the risk of executing a binary options open is fixed for each individual trade, it is possible to lose all of the initial investment in a course of several trades or in a single trade if the entire capital is used to place it. The website does not provide any paid services. It is not recommended to base your investment decisions on any information presented on or originating from BinaryTrading.com. All content of BinaryTrading.com is presented for educational or entertainment purposes only.

Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to Binary Options or (b) any direct, indirect, special, consequential or incidental damages whatsoever. General Risk Warning: Trading in Binary Options carries a high level of risk and can result in the loss of your investment. You should not invest money that you cannot afford to lose. As such, Binary Options may not be appropriate for you. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk appetite.

A binary option is a financial product where the parties involved in the transaction are assigned one of two outcomes based on whether the option expires in the money. Binary options depend on the outcome of a "yes or no" proposition, hence the name "binary." Traders receive a payout if the binary option expires in the money and incur a loss if it expires out of the money.

The trader makes $60 ($100 – $40). A binary option has a strike price of $65 and expires tomorrow at 12 p.m. If the price of the stock finishes above $65, the option expires in the money and is worth $100. The trader can buy the option for $40. Let's assume stock Colgate-Palmolive is currently trading at $64.75.

At the time of expiry, the price of the underlying asset must be on the correct side of the strike price (based on the trade taken) for the trader to make a profit. Binary options have an expiry date and/or time.

This trading platform includes updated quotes, free charts and a large selection of global assets. -EZMobile: It is an application designed to access the account and trade with binary option from any smartphone like the iPhone or any Android-powered device.

In this case, the trader must predict in the underlying asset price will end above or below the acquisition price once the option expires. Usually, the above/below options offered by this broker have an expiration period of 1 hour, however, the trader can also trade with binary options 5 min strategy formulation options with varying maturities. If the price touches that level, then the option is automatically terminated without finishing its period of maturity. In this case, the trader mus establish if the underlying asset price will touch or not a predetermined price level (barrier) before the option expires. Because of its complexity, the return offered by One Touch options can reach up to 400% with this broker. One Touch Binary Options: These are more complex binary options than above/below options. Above/Below Binary Options (long/short term expiration of the contract): This is the most common type of binary option due to its simplicity and the high and fast income that it offers for the trader.