1 2 3 Strategy Binary Options

What are binary options

A binary option is a type of pick with a fixed payout in which you predict the upshot from two possible results. If your prediction is correct, y’all receive the agreed payout. If not, you lose your initial stake, and nothing more. It’s called ‘binary’ because in that location tin exist only two outcomes – win or lose.

Advantages of binary options trading

Aside from the simplicity of its ‘yes or no’ proposition, binary options trading is also very flexible. It gives you the ability to trade:

Why you should trade binary options with Binary.com

Enjoy an honor-winning online trading platform with trading atmospheric condition that are ideal for new and experienced traders.

Award-winning online trading platform

• Unproblematic and intuitive

  Enjoy a trading platform that’due south easy to navigate and use.

• Instant admission

  Open up an account and start trading in minutes.

• Available 24/7

  Trade when you want. Our Constructed Indices are available even on weekends.

• Patented technology

  Trade with the manufacture pioneer and holder of a patented pricing technology.

• Security and privacy

  Merchandise confidently, knowing that your personal data, transactions, and funds are always secure.

All atmospheric condition and durations

• All markets and conditions

  Trade currencies, stock indices, bolt and more in rise, falling, sideways, quiet, and volatile markets.

• Short to long-term durations

  Choose timeframes from 10 seconds to 365 days.

Competitive and transparent pricing

• Sharp, benchmarked prices

  Receive prices that are benchmarked against interbank rates.

• Transparent risk and potential advantage

  Know how much you volition win or lose before you purchase the contract.

• Protect your profits

  Sell your long-term contracts before expiry to protect any profits you may have fabricated or to minimise your losses.

• 2-mode pricing

  Receive quotes for a merchandise and countertrade, so you lot ever go unbiased, transparent rates.

Ideal for new and experienced traders

• Low minimum stakes

  Eolith as little as 5 USD to start trading.

• Merchandise co-ordinate to your preferred strategy

  Trade based on “gut experience” or rely on technical and primal analysis.

• Flexible

  Cull from over one million possible trade variations at any fourth dimension, and customise your trades according to your preferred strategy.

• Scalable

  Earn the same proportional return on stakes of all values.

How to merchandise binary options

Binary options trading is relatively easy. You tin can purchase a contract in but iii steps:

Step 1: Define your position

The outset footstep is to set the parameters of your merchandise. There are five merchandise parameters you need to adjust in order to receive a price for the contract:

Choose from four bachelor markets:

• Forex

  Major and minor pairs, plus Smart FX indices

• Stock Indices

  All major worldwide stock indices sourced from the over-the-counter marketplace

• Commodities

  Major commodities such every bit gilt, silver, and oil

• Constructed Indices

  Our proprietary synthetic indices that simulate market forces

Choose from iii master merchandise types:

• Upwards/Down

  Predict if the market will rise or autumn from its current level, or if it will end college or lower than a price target.

• Touch/No touch

  Predict if the market will touch or non affect a price target.

• In/Out

  Predict if the marketplace volition stay between or become exterior two price targets.

Aside from the iii main trade types above, you too become Asians and Digits trade types exclusively with our Synthetic Indices.

Set the length of your trade from 10 seconds to 365 days, whether you have a curt-term or long-term view of the markets.

Set barrier(southward) to define your position and trigger the payout you’ll receive.

Choose the payout you wish to receive from correctly predicting this contract.

Footstep 2: Get your price

The price of the contract is automatically calculated by our patented pricing technology based on the parameters you lot’ve defined in Footstep 1. Our prices are benchmarked against the interbank options marketplace, so you always become the almost competitive prices. This means that you’ll e’er receive fair and transparent pricing, whatever your position.

Step 3: Make your trade

When y’all are satisfied with the price that you receive, execute your merchandise immediately. With our unique platform, there’due south no run a risk of ‘slippage’ or gaping markets. And near importantly, in that location are no subconscious fees. Yous tin also sell dorsum any long-term trades at whatsoever time to profit from favourable market conditions.

Types of trades

Binary.com offers the following merchandise types that will help you lot execute your marketplace view or strategy:

Delight notation that Asians, Digits, Reset Phone call/Reset Put, High Ticks/Depression Ticks, and But Ups/Simply Downs are bachelor exclusively with our Constructed Indices.

Range of markets

Binary options permit you to trade on a wide range of underlying markets. One of the advantages of trading binary options is that you are not buying or selling an bodily nugget, only a contract that determines how that nugget performs over a period of time. This limits your risk and makes information technology like shooting fish in a barrel for anyone to start trading.

Available markets

Forex

Trade pop major and minor currency pairs, plus Smart FX indices – weighted indices that measure out the value of a currency confronting a basket of major currencies.

At that place are four types of Smart FX indices that you can trade:

• AUD Index – Measures the value of the Australian dollar confronting a basket of five global currencies (USD, EUR, GBP, JPY, CAD), each weighted by 20%
• EUR Alphabetize – Measures the value of the Euro confronting a basket of five global currencies (USD, AUD, GBP, JPY, CAD), each weighted past 20%
• GBP Index – Measures the value of the British Pound against a basket of five global currencies (USD, EUR, AUD, JPY, CAD), each weighted by xx%
• USD Index – Measures the value of the US dollar confronting a basket of five global currencies (EUR, GBP, JPY, CAD, AUD), each weighted by 20%

Stock Indices

Savour heady opportunities to merchandise stock indices with the do good of real-time charts and pricing.

Our stock indices are sourced from the over-the-counter (OTC) market – sources outside of the centralised exchanges. Please note that due to their OTC nature, the prices of our stock indices may differ from their counterparts on centralised exchanges.

Commodities

We offer all four precious metals – gold, silverish, palladium, and platinum – every bit well equally energy in our list of commodities.

Constructed Indices

Binary.com’due south Constructed Indices are synthetic indices that mimic real-world marketplace volatility and are available for trading 24/7. They are based on a cryptographically secure random number generator audited for fairness past an contained tertiary party.

Synthetic Indices give y’all sectional access to various trade types, such every bit Up/Down, Bear upon/No Touch, In/Out, Asians, Digits, Lookbacks, Reset Call/Reset Put, Phone call Spread/Put Spread, Only Ups/Only Downs, and more.

Synthetic Indices are farther categorised into ii classes:

• Continuous Indices – Choose from the Volatility ten (1s) Index, Volatility 25 (1s) Index, Volatility fifty (1s) Index, Volatility 75 (1s) Index, Volatility 100 (1s) Alphabetize, Volatility 10 Alphabetize, Volatility 25 Alphabetize, Volatility 50 Index, Volatility 75 Alphabetize, and Volatility 100 Index. These indices correspond to simulated markets with constant volatilities of 10%, 25%, 50%, 75%, and 100% respectively.
• Daily Reset Indices – Daily Reset Indices replicate markets with a bullish and bearish trend with a constant volatility. The Balderdash Market and Bear Marketplace indices starting time at 00:00 GMT each mean solar day, replicating bullish and bearish markets respectively.

Glossary

Barrier(s)

The barrier of a binary option merchandise is the price target you prepare for the underlying. You can cull trades that stay below or go above a price target, or stay between 2 targets.

Binary option

A binary choice is a contract purchased by a trader, which pays a pre-determined amount if their prediction is right.

Commodities

Commodities are resource that are grown or extracted from the ground, such as silvery, gold and oil. On Binary.com, they are priced in US dollars.

Contract period

The contract period is the timeframe of a trade. It is as well called the duration.

Derivative

A derivative is a financial instrument whose value is determined by reference to an underlying marketplace. Derivatives are unremarkably traded in the inter-bank market, and binaries are one of the simplest forms of derivatives.

Duration

The duration is the length of a purchased trade (come across ‘contract menses’).

Ends Between/Ends Exterior trades

An Ends Betwixt trade pays out if the market leave toll is strictly higher than the depression price target AND strictly lower than the loftier price target. An Ends Outside binary pays out if the market go out cost is EITHER strictly higher than the loftier price target OR strictly lower than the depression price target.

Entry spot price

The entry spot price is the starting price of the trade purchased past a trader.

Expiry price

The expiry price is the cost of the underlying when the contract expires.

Forex

In foreign exchange markets, traders can enter contracts based on the change in price of one currency as it relates to some other currency. For case if a trader selects Rise in the EUR/USD market, they are predicting that the value of the Euro will rise in relation to the value of the Us dollar.

GMT

GMT stands for Greenwich Mean Fourth dimension, the official time used in the UK during winter. In summer, the UK changes to British Summertime Time, which is GMT + 1 hour. All times on the Binary.com site use GMT all year circular.

Higher/Lower trades

These are trades where the trader predicts if a marketplace will finish higher or lower than a specified price target.

Stock Indices

Stock market indices measure the value of a selection of companies in the stock market.

In/Out trades

These are trades where the trader selects a depression and loftier bulwark, and predicts if the market will stay inside these barriers or go outside them (see too ‘Stays Between/Goes Outside trades’).

Market place leave price

The market get out price is the cost in result at the end of the contract flow.

No Impact trades

These are trades where the trader selects a price target, and predicts that the market will never affect the target before the death of the trade.

(One) Touch trades

These are trades where the trader selects a price target, and predicts that the market place will touch the target earlier the expiry of the merchandise.

Payout

The payout is the corporeality paid to an options trader if their prediction is correct.

Pip

Pip stands for ‘percentage in signal’ which is generally the fourth decimal place (i.e. 0.0001).

Profit

The profit is the divergence between the purchase toll (the stake) and the payout on a winning trade.

Synthetic Indices

The constructed indices simulate various real market situations and provide an ideal platform for getting used to trading and testing strategies under various market conditions. These indices depend on volatility and drift, and help users to endeavor out scenarios like – high volatility, low volatility, bullish and bearish trends.

Resale price

The resale price indicates a contract’due south current market price. Resale prices are on a best-efforts basis and may not be available at all times after purchase. Run into ‘Sell selection’ for more details on selling contracts before expiry.

Return

The return is the money realized when the contract expires (encounter ‘Payout’).

Ascension/Autumn trades

These are trades where the trader predicts if a market will rising or fall at the end of a selected time menstruum.

Sell option

It is sometimes possible to sell an option before the death of a trade, only but if a off-white price can be determined. If this option is available, you will see a ‘Sell’ push button inside the popup window, after clicking on the ‘View’ button next to your trade in the portfolio.

Spot price

This is the current price at which an underlying can be bought or sold at a particular time.

Stake

The pale is the amount that a trader must pay to enter into a trade.

Stays Between/Goes Outside trades

A Stays Between trade pays out if the market place stays between (does not impact) BOTH the high barrier or the low barrier at any time during the catamenia chosen by a trader. A Goes Exterior trade pays out if the market touches EITHER the high bulwark or the depression barrier at any time during the period called past a trader.

Tick

A tick is the minimum up or downward motility in the price of a marketplace.

Underlying

Each binary selection is a prediction on the future movement of an underlying market place.