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

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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 is correct, you receive the fixed payout. If not, you lose your investment for that trade.

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This is when the trade ends and results are determined. Expiry times can vary website from as little as 5 seconds or 60 seconds to several hours, days, or even weeks. Choose based on your market analysis and trading strategy.

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

Binary options are ideal for those who prefer fast, straightforward trades with clearly defined outcomes. Traditional options, on the other hand, offer more strategic flexibility and are better suited more info for experienced traders who want to hedge or leverage positions.

Despite their simplicity, binary options carry important risks and limitations that traders should understand before participating.

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