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The most common type. Traders predict whether the asset price will be higher or lower than the current price at expiration. A correct prediction yields a payout.

These bad actors have exploited the simplicity of binary options to mislead and defraud unsuspecting traders.

Many platforms allow low minimum deposits and small trade amounts, making it easy for new traders to get started without large capital investments.

Selecting the right broker is one of the most important decisions you’ll make as a binary options trader. A reliable broker not only enhances your trading experience but also helps protect your capital and data. Here are the key factors to consider:

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Binary options are time-based trading contracts where you predict whether the price of an asset will go up or down relative to read more a fixed level — known as the strike price

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Traders simply decide whether the asset’s price will be above or below the strike price when the trade expires. If the prediction is correct, you receive the fixed payout. If not, you lose your investment for that trade.

Regulation plays a critical role in ensuring transparency, fairness, and security in the binary options market. Trading with a regulated broker means you’re protected by laws that are designed to prevent fraud and promote responsible financial practices.

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South Africa’s regulatory body for non-banking financial services. It oversees binary options brokers serving the African market, promoting fair practices.

Despite their simplicity, binary options carry important risks and limitations that traders should understand before participating.

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