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Definition: Binary trading is a type of investing where investors have to predict the result of a yes/no situation by the end of a determined period Pocket Option Martingale Strategy . Binary trading indicates that investors can choose from only two investment possibilities, in which the payoff is either a fixed amount of money as compensation or nothing at all.
When can you trade on Pocket Option? Traditional options, such as stock options, are only available for trading during regular market hours, which are Monday through Friday, 9:30 am to 4:00 pm EST. But with the rise of online trading platforms, new forms of options have emerged, such as pocket options, that allow traders to trade on weekends as well.
Is Pocket Option good for beginners? User-friendly platform: The Pocket Option platform is intuitive and easy to navigate, making it accessible for both beginner and experienced traders. Competitive payouts: Pocket Option offers competitive payouts, with some trades offering up to 95% returns on successful trades.
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- What Does Binary Trading Mean?
- Example
In binary trading, buying the binary indicates that, for the investor, the outcome will be true, while selling it shows that the investor is guessing the result will be false. The only two pay-offs are a total dollar amount at the end of a pre-established time period or losing the entire investment. In financial markets, investors predict, for example, the fluctuation of the value of a certain asset during a defined period of time.
If he manages to forecasts the asset’s price trend, he obtains a set dollar amount for his investment according to the binary agreement Pocket Option Api Key . But if he guesses wrong, the entire investment is lost . Binary trading alternatives have two main classifications: the cash-or-nothing type, which pays some fixed amount, and the asset-or-nothing kind, that pays the value of the underlying asset according to the investment contract . Investors use binary trading to invest in commodities, stocks, and currency exchanges.Let’s look at an example.
Example
Mr. Jones enters in an online binary trading where he purchases a cash-or-nothing binary call option on Orange Company for $200 with a final pay-off of $2,000. The call option implies that the value of the asset was above $200 at the end of the agreed investment period.
If the investment rose above $200, Mr. Jones will receive a pay-off of $2,000. If the investment fell below $200, the investor loses all his money. At the end of the time period, the shares final price went up to $210, entitling Mr. Jones to $2,000 in cash.