What is a pip in binary options

What is a pip in binary options

Posted: Aircash On: 20.06.2017

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. 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.

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These variations bring about the biggest difference, which is how a profitable trade is calculated. With a binary option trade, the broker will pay out a percentage of the premium at risk if the conditions of the contract what is a pip in binary options met e.

Basically, you receive a predetermined fixed profit, regardless of how far the market moves beyond the strike price or met the conditions of the contract.

what is a pip in binary options

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what is a pip in binary options

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