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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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Underlying Asset: The financial product you’re trading, such as a currency pair like EUR/USD, a commodity like gold, or an index.

While binary options share similarities with gambling—such as fixed outcomes and quick results—they are not inherently gambling.

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Why it matters: A lower minimum deposit allows you to start trading without a large upfront commitment.

Binary options are a type of financial derivative that let traders speculate on the price direction of various assets, including stocks, currencies, commodities, and indices. The term “binary” comes from the two possible outcomes of a trade:

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Why it matters: Regulated brokers operate under strict guidelines and are monitored by financial authorities, reducing the risk of fraud.

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Clear Risk and Reward: Your potential loss is limited to your initial investment, and potential profit is known in advance.

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Trading binary options involves a straightforward decision—will the price go up or down? Pelo need for complex strategies or timing exits.

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