Prepare for the Binary Trading exam with our free practice test modules. Each quiz covers key topics to help you pass on your first try.
Try these questions from our free Binary Trading practice tests. The correct answer and an explanation follow each question.
In the Martingale strategy applied to binary options, what happens after a losing trade?
Answer: A. The next stake is increased to recover the previous loss
Martingale doubles or increases the stake after each loss to recoup losses with one win.
What is a 'trend' in technical analysis for binary options?
Answer: B. A consistent directional movement of an asset price over a period of time (uptrend, downtrend, or sideways)
A trend is the general direction in which a market is moving over time — identifying and trading in the direction of the trend is a core binary trading principle.
What does an RSI reading above 70 typically suggest for a binary trade?
Answer: A. The asset may be overbought and due for a downward move
An RSI above 70 indicates overbought conditions, often preceding a price pullback.
In binary options, what is the 'expiry time'?
Answer: C. The predetermined moment at which the option's outcome is determined
The expiry time is the specific future moment when the binary option's outcome is settled — the asset price at that exact instant determines whether the trade wins or loses.