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All the binary option broker needs to do is to maximise the trading volume to increase profits and lower the risk. This is why the industry offers such a wide selection of expiry dates. Traders can trade anything from 1 min to 6 months.

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Binary Options Trading Formula. While doing all these, get some time to check about the Black-Scholes model.. This is used to calculate the binary option trades and the formula used for this is:

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Binary Option | Payoff Formula | Example The binary options trader buys a basic binary put option if he is bearish on the put in the very near term. This basic binary binary option is also known as the common "High-Low" binary put option.