Let us talk about binary options in brief. Since you have shown interest in this particular topic, I think it is safe to assume that you are already aware of what Binary Options actually are and what they entail. Regardless, let me give you a rundown anyway. Basically the binary option is a sort of prediction that you make, instead of one factor, you have to get two factors right, hence the name binary option. If you are right in your predictions, then you will make quite a lot of money from this, but if you are wrong, then you are going to lose all your money. Imagine you have created a short position in S&P 500 Index ETFs believing that company X will perform badly and miss its earning target, and also you predict that as a result the company’s stock price will fall drastically. However, if the company misses its earning target, it is not always guaranteed that the stock price will fall, there are other factors that heavily influence a company’s stock prices. If either of your predictions prove to be wrong, then you loser money and that is the risk in trading with binary options.
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