The first thing a Binary Option Trader learns is the difference between a put option and a call option. The owner of a call has the right not the obligation to buy shares of the underlying stock at the strike price.

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During the month the price of the option will fluctuate based on the price of the stock. If the price of the stock goes up, the price of the call option will go up too. If the price of the stock goes down, the price of the call option will go down too. The reason to buy a call option is because you believe that the price of the stock will go higher.

The owner of a put has the right not the obligation to sell shares of the underlying stock at the strike price. If the price of the stock goes down, the price of the put option will go up too.

If the price of the stock goes up, the price of the put option will go down. People buy put options because either they think the price of the stock will go down and they would like to profit from the fall in the stock prices.

The other reason people buy put options is to protect their stock investment. A put option what is the difference in the binary options brokers an insurance policy for your stock. Binary Options trade in a much shorter time frame. Binary options trade for 60 seconds or for a day.

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It is no secret, but it is often misunderstood, How a Binary Options Broker Makes Money. The simple answer is, when a trader loses money, the broker keeps it.

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Differences Between Forex & Binary Options Trading

Items to Compare are: Licensed or Unlicensed Trading Platform… Read More…. Regulated Binary Options Licensed Brokers Binary Option Scams Trading Signals About Contact. Regulated Brokers Binary Option Scams Robots Broker News Education. Call Options The owner of a call has the right not the obligation to buy shares of the underlying stock at the strike price. Put Options The owner of a put has the right not the obligation to sell shares of the underlying stock at the strike price. Top Rated Binary Options News Binary Options Demo Account Demo Accounts are an Important Part of Choosing a Binary Options Broker.

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