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Binary Options Guide For Beginners
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Home > Basic Understanding, binary options strategy, binary options trading strategy > Binary Options Trading – Some Basic Understanding

Binary Options Trading – Some Basic Understanding

Binary Trading Basic Definitions

Binary Options is also known as an “all or nothing” trading system, essentially you are meant to predict if a certain Asset will increase or Decrease It’s value;  in other words there are just two options to choose from, just like in Binary Mathematics. That is were the word “Binary” is derived from.In the Binary Options Inner language a “Call”  options is when a Trader predicts that an Asset will increase It’s value, or a “Put” options is when a Trader predicts that an asset will decrease it’s value.

Binary Trading – The Outcome Of A Trade

Another term used for this kind of trading system as I mentioned before,  is the “all or nothing”  in other words , if a  Binary Trader is right on his predictions; which means he bought the right options and was successful. Then The Binary Trader wins all the money he invested on the options and  covered his initial investment plus another 70% profit.

On the Other hand, if a Trader is wrong with his predictions, he usually loses all the money he invested on the Binary Options and is left with nothing. Some Trading platforms return 15% of the initial investment back to the Trader. That means the Binary Trader lost just 85% of his investment and not all the 100% he invested on that Binary Option he bought, in other word it’s all or almost nothing.

You may also find this interest in this  article, a binary options guide for strategies and how to implement them. this article is meant for beginners and advanced binary traders alike.

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