Is Binary Options Trading Legal?

Break-even point s - The stock price s at which an option strategy results in neither a profit nor a loss. These bonuses are a plus as they enable traders to be able to get a head-start in their trading experience. FXMasterBot — How does it work? Learn options trading in our 5-day trading course. That all takes just a few minutes, and from that point onwards the automated robot takes over. Join the SJ Options Newsletter.

Options trading involves certain risks that the investor must be aware of before making a trade. This is why, when trading options with a broker, you usually see a disclaimer similar to the following.

Transparency and Regulation

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Options trading can be complex, even more so than stock trading. When you buy a stock, you decide how many shares you want, and your broker fills the order at the prevailing market price or at a limit price. For instance, if an options contract with a strike price of $45 is trading for $8 and the underlying stock trades at $50, $5 of the option's price would be . Interactive Brokers is a strong option for advanced, frequent traders: The broker offers international trade capabilities, low commissions and a quality trading platform. New traders might be turned off by inactivity fees, high balance requirements and a lack of educational resources.