The primary difference between a binary option trading and ordinary trading is that under the latter one becomes the owner of the asset and can be held as long he desires to hold them as against the former where one trades on the differences in the price of the asset.
These options can be used to hedge your contract, if you find that your contract is already out of money you can use binary options to lock your gains. These options seem quite impressive to new comers who ignore all trading discipline and overtrade without a proper system and hence pile up losses for themselves. Basically time value represents the difference in expected value of the option on the expiry date.
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