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  • How are Binary Options Settled?

    Binary Options may be either American style or European style:
    • European options can be exercised only on the Expiry Time, not before.
    • American options can be exercised at any time up to and including the Expiry Time.


    Binary Options are non-deliverable, which means they are cash settled.

  • #2
    If it's like that then American Style Binary Options is the one I would prefer. If prices do not meet the payout requirements upon expiration then the investor receives nothing?

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    • #3
      Many investors use this as a key to improving your financial situation. American style binary options might be the best choice however, it is not available for all brokers.

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      • #4
        European style is the most common.

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        • Ekron Freak
          Ekron Freak commented
          Editing a comment
          I think the European way of trading binary options is the most widely accepted way of trading online options, far much better than American style.

      • #5
        Base on your explanation, I think the American option is a much favorable binary options trading.

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        • #6
          Originally posted by StockBroker
          Base on your explanation, I think the American option is a much favorable binary options trading.

          American option could be as favorable as you think but the bad news is that it is not always present on every online broker.

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          • #7
            With the call and put option, you have to choose between the call and the put then all else in binary options are settled.

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            • #8
              1. “Call Option” – Select call if you believe that the instrument will close above the current price (91.53) by the expiry time (13:00).
              2. “Put Option” – Select put if you believe that the instrument will close below the current price by the expiry time.
              3. Select Investment amount

              See sample graph:

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              • #9
                Originally posted by stockmarket
                1. “Call Option” – Select call if you believe that the instrument will close above the current price (91.53) by the expiry time (13:00). 2. “Put Option” – Select put if you believe that the instrument will close below the current price by the expiry time. 3. Select Investment amount See sample graph:

                Your illustration is really great. Good job!

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                • #10
                  You all guys are really great, and I would still encourage you to trade binary options in any sites that you choose just to learn about it more.

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                  • #11
                    stockmarket you have given us a nice visual example on how to settle binary option trade, I hope there could also be video you can share.

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                    • #12
                      Settling binary options is just simple, just follow the simple rules if you want to understand it better, try the demo account

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                      • #13
                        It's very important to know how binary options work in order to successfully trade with them.

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                        • #14
                          Trading is a lot of fun only when you are on the winning side,All you need is a good trader with a very nice strategy who can trade for you.
                          Key to success in binary option compIeteIy depends on the signal you choose, & its 100 % true.

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                          • #15
                            European-style options are clear, almost all brokers offer this type. But maybe you guys know brokers who work with American-style options? I'd like to check it out.

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