1. They are easy to understand
They have easy “yes” and “no” propositions. Their pricing is intuitive. No matter what point, the binary price is just the perception of the market’s likely percentage that the contract settles with a “yes.” You can work this out based on how the pricing of these options, which will be thoroughly clarified in this article.
2. They have small contract sizes
When they get ready to expire, every lot can settle at $0 for “no” and $100 for “yes.” You need an amount below $100 for maximum collateral. Usually, it is much less. You cannot ever lose more than the collateral.
3. There is also a strict limited risk
You cannot at any point price contracts outside of that $0-$100 range, no matter what the underlying market’s volatility is. You must always be aware of the absolute worst-case amount you can risk for the positions you choose no matter if the contract is short or long.
4. Binary options also have multiple markets
This lets you surmise on a variety of asset classes and markets online and with a small minimum deposit. You may also use these binary options for determining numerous economic data released outcomes that would usually be tough for retail traders to figure without using binary options.
5. They also have interesting price behaviors near expiration
Because these options are binary, their behavior when nearing their expiration date differs greatly from other trading options. If this is used wisely, you could exploit some intriguing trading methods.
6. The markets for binary options stay open until they expire
You can place your orders to get in and out at any binary position numerous times as you watch the market fluctuate. While there are “everything or nothing” payouts, you are not limited to strategies like that since you have the option to trade in or out of a contract any time before they expire.
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