Binary options are a straightforward form of derivatives that differ slightly from vanilla options and convey fixed profit/loss and risk to investors. Binary options present a simple question of whether or not the price of the underlying asset will be above or below a strike price at a point in the future.

Most binary options trading occurs outside of the U.S. as they are strictly regulated by the Commodities Futures Trading Commission (CFTC) and are only available in specific formats on regulated exchanges in the country.

Binary options are simple methods for hedging risk or speculating on the price of multiple forms of assets with a predetermined risk and potential for profit or loss. However, many binary options are considered gambling or fraudulent, which is why they are strictly regulated in the U.S., and illicit outlets are pursued by FBI worldwide.

Several outlets for cryptocurrency binary options are available. However, they are not recommended for beginners as they carry high risk and are involved with an emerging…

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Source: https://thebitcoinnews.com/what-are-binary-options-how-do-they-work-complete-guide/