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.
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 check here is correct, you receive the fixed payout. If not, you lose your investment for that trade.
Why it matters: Regulated brokers operate under strict guidelines and are monitored by financial authorities, reducing the risk of fraud.
In many jurisdictions, binary options are lightly regulated or not regulated at all, increasing the risk of scams and fraudulent brokers.
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South Africa’s regulatory body for non-banking financial services. It oversees binary options brokers serving the African market, promoting fair practices.
Trading binary options involves a straightforward decision—will the price go up or down? No need for complex strategies or timing exits.
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