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Q4: What is binary options trading? Answer: Binary options, also known as digital options, or all-or-nothing options, are contracts which have only two possible outcomes - either they win, or they lose - therefore binary by nature. A binary option involves a fixed payout after.
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When the holder of an option exercises his right to buy/ sell, a randomly selected option seller is assigned the obligation to honor the underlying contract, and this process is termed as Assignment. What are European and American Style of options? An American style option.
Let us turn to the second parameter, which speaks to the simplicity of binary trading availability! To trade binary contracts, the investor does not need a huge amount of capital. Just 10 dollars is enough to start. But first you need to choose a broker.
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