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Binary forex trading demo
If the price stays within the range selected, a payout is received. If the price moves out of the specified range, then the investment is lost. While the structure of the product may change, risk and reward is always known at the trade's outset.
Exiting a trade before expiry typically results in a lower payout (specified by broker) or small loss, but the trader won't lose his or her entire investment. A major advantage is that the risk and reward are known.