What are Binary Options? Table of Contents

What are Binary Options?

Binaries are a simple, fast, and exciting way to trade financial market price movements.

A binary option allows you to trade on the short-term price movements of individual currencies, equities, indices, and commodities quoted on the world’s leading exchanges, without physical ownership of the underlying instruments.

A binary option has similar characteristics to a spread bet although the risk is limited because at the time of placing your trade you know exactly what you can win or lose.

What’s more, a binary option does not require margin and you do not need to worry about stop losses or closely monitoring your positions.

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What are the merits of trading Binary Options?

Binary options provide the perfect trading format for individuals looking for ways to trade movements in international financial markets while remaining in full control of their risk.

Many traders find trading binary options one of the most simple and enjoyable ways to profit from movements in financial markets.

Deriv offers binary options on a wide range of financial markets including currencies, indices, individual equities and commodities.

Benefits of trading binary options include:

  • Define from the outset the extent of your exposure;
  • Take advantage of price movements in short time periods;
  • Binary prices can be extremely volatile even when the underlying market is relatively static;
  • No need to deposit margin
  • No need to set stop losses or closely monitor your positions

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