Module 1: Introduction to Binary Options Trading

What is the primary proposition of binary options trading?

• Predicting the exact price of an asset in the future

• Predicting whether an asset's price will be above or below a certain point at a predetermined future time

• Predicting the long-term trend of an asset

• Predicting the total market value of an asset

Which of the following is NOT a benefit of binary options trading?

• Simplicity of decision-making

• Potential for high returns

• No risk involved

• Defined risk and reward

Why are binary options sometimes referred to as "all-or-nothing options"?

• Because traders always get a small return

• Because the outcome is either a fixed return or a total loss

• Because there are multiple outcomes possible

• Because they involve trading all assets at once

What is the best time to trade binary options based on market sessions?

• During the overlap of major trading sessions

• During the weekend

• Only during the Asian market session

• During holidays

Which of the following is a key factor to consider for successful binary options trading?

• Predicting the highest price of the day

• Aligning trades with high-impact economic events and news releases

• Trading without a strategy

• Ignoring market volatility

How do binary options provide accessibility to traders?

• By allowing trading with significant capital

• By requiring a high level of expertise

• By enabling traders to start with a low investment

• By only allowing professional traders to participate

Which of the following markets does binary options trading NOT typically cover?

• Stocks

• Forex

• Commodities

• Real estate

Why might traders prefer the opening hour of a major stock exchange for binary options trading?

• Because of low trading volume

• Because of increased trading volume and initial price movements

• Because prices remain stable

• Because it’s the quietest time of day

What aspect of binary options trading makes it attractive during flat markets?

• The ability to speculate on market stability or minor price movements

• The certainty of large profits

• The low level of risk involved

• The requirement to trade only during volatile markets

Which of the following is a reason why binary options trading can lead to fast returns?

• Binary options contracts are often short-term

• Trades are executed over long periods

• It involves complex market analysis

• Prices remain constant throughout the trading period