Binary Trading Cheat Sheet 2026

The 30 highest-yield Binary Trading facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which of the following is true about trading via mobile? → Most trading platforms have been designed with mobile device users in mind.
2. What are the only two possible outcomes of a binary option at expiry? → Fixed payout or total loss of the stake
3. What is a legitimate U.S. exchange where binary options can be traded? → Nadex
4. What does a 'put' binary option profit from? → The price finishing below the strike
5. Which statement best describes a '60-Second' binary option? → An option with an expiry time of exactly 60 seconds after purchase
6. A common warning sign of a fraudulent binary options broker is what? → Refusing or delaying client withdrawals
7. A 'call' (or 'high') binary option profits when the underlying asset's price does what relative to the strike at expiry? → Finishes above the strike
8. Many unregulated offshore binary options brokers have been associated with what problem? → Fraud and refusal to return funds
9. Which binary option type is most suitable for capitalizing on high-volatility news events with uncertain direction? → Out-of-Range boundary options predicting a breakout
10. What does 'capital preservation' mean in binary trading? → Protecting the trading account from excessive losses to stay in the game long-term
11. Why is the break-even win rate important in binary options? → It is the minimum win rate needed to avoid losing money given a broker's payout percentage
12. Which statement about binary options expiry times is accurate? → They can range from seconds to weeks depending on the contract
13. In the Martingale strategy applied to binary options, what happens after a losing trade? → The next stake is increased to recover the previous loss
14. What does 'trading discipline' primarily involve? → Consistently following a trading plan and rules regardless of emotional state
15. What does the bid price of an exchange-traded binary roughly represent? → The market's implied probability of the event occurring
16. What typically determines a binary option's expiry? → A preset time chosen when the trade is opened
17. What does 'platform latency' mean in binary trading? → The delay between a trader's action and the platform's response or trade execution
18. What does a 'moving average crossover' signal in binary trading technical analysis? → That two moving averages have the same value, which may signal a change in trend direction
19. What does 'revenge trading' mean in binary options? → Impulsively placing trades after a loss to quickly recover lost money
20. What does a 'bullish engulfing' candlestick pattern signal in binary trading? → A potential reversal from downtrend to uptrend, suggesting a call option opportunity
21. What is the typical expiry timeframe available for 'long-term' binary options? → Days, weeks, or months into the future
22. What is a common red flag indicating a potentially fraudulent binary options broker? → Refusing or delaying withdrawals and requiring additional fees to release funds
23. Why is the Martingale strategy considered high-risk in binary trading? → A losing streak can rapidly exhaust the trading account
24. What should a trader verify before depositing with a binary options broker? → That it is registered with the appropriate regulator
25. Why is 'platform security' (SSL/TLS encryption) important in binary trading? → It protects sensitive financial and personal data from interception by cybercriminals
26. What is the role of the stochastic oscillator in a binary reversal strategy? → It identifies overbought and oversold conditions for timing entries
27. On Nadex, can a trader exit a binary option position before expiry? → Yes, by selling the contract at its current market price
28. How does a 'Spread' or 'Tunnel' binary option determine a winning outcome? → The trade profits if the asset price remains within a defined price tunnel at expiry
29. What is a 'signal service' tool in binary trading? → An alert system notifying traders of potential trading opportunities based on analysis
30. What is the main appeal that attracts beginners to binary options? → Simple yes/no outcomes and known risk per trade