What are binary options and how do they work?

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What are binary options and how do they work?

Binary option contracts offer defined risk and clear outcomes. They are considered ‘binary’ because there are only two possible outcomes at expiration: you either make a predefined profit, or you lose the money you paid to open the trade. This makes it easier for you when deciding whether to trade, as you know exactly how much you could lose if the markets move against you. And if they don’t, you know the exact amount you invest.