Don't be intimidated! Its name may sound complicated, but binary options are arguably a simpler way to trade than traditional options or currencies.

Just like traditional options, binary options have a premium, a strike price, and an expiration.

The difference is that, with binary options, the "premium" amount for the option is chosen by the trader (usually determined by the the market with traditional options) and the expiration time frames are much shorter.

Traditional options have an expiration range of a week to a couple of years, while binary options have an expiration range of less than a minute to a few days.



Read more: http://www.babypips.com/school/what-are-binary-options.html#ixzz2ZBA3VCIK
 


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