Question 1
What is a 'Call' option in binary trading?
Correct Answer:
An option that profits when the asset price rises above the strike price at expiry
Question 2
What does a 'Put' option represent in binary trading?
Correct Answer:
A prediction that the asset price will fall below the strike price at expiry
Question 3
Which binary option type pays out if the asset price touches a specific target level at any point before expiry?
Correct Answer:
One Touch option
Question 4
What is a 'boundary' or 'range' binary option?
Correct Answer:
An option that profits if the price stays within or exits a defined price range at expiry
Question 5
In a 'High/Low' binary option, what must happen for a 'High' (Call) trade to expire in the money?
Correct Answer:
The asset price must close higher than the strike price at expiry
Question 1
Exam overview

About this Exam

Prepare with the Binary Options Trading Practice Test practice quiz. This question bank includes 50 questions covering binary, trading, trade, asset, and expiry. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Binary Options Trading Practice Test

This practice set contains 50 questions from the matching question bank and focuses on binary, trading, trade, asset, and expiry. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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