What are binary options
A binary option is a type of option with a stock-still payout in which you predict the issue from two possible results. If your prediction is correct, you receive the agreed payout. If non, you lose your initial pale, and nil more. It’due south called ‘binary’ because there tin can be only 2 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. Information technology gives you the power to trade:
Trade on underlying markets that include forex, stock indices, commodities, and more.
All market weather condition
Predict marketplace movement using up/downwards, touch/no touch, and in/out merchandise types.
Take a short-term or long-term view with trade durations from 10 seconds to 365 days.
Earn payouts up to fifty,000 USD. Losses are limited to your initial stake and nothing more.
Why yous should trade binary options with Binary.com
Enjoy an award-winning online trading platform with trading atmospheric condition that are ideal for new and experienced traders.
Award-winning online trading platform
Simple and intuitive
Enjoy a trading platform that’s like shooting fish in a barrel to navigate and use.
Open an account and start trading in minutes.
Trade when you want. Our Synthetic Indices are available even on weekends.
Merchandise with the industry pioneer and holder of a patented pricing engineering science.
Security and privacy
Trade confidently, knowing that your personal data, transactions, and funds are always secure.
All conditions and durations
All markets and conditions
Merchandise currencies, stock indices, commodities and more in ascent, falling, sideways, quiet, and volatile markets.
Brusk 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 reward
Know how much you volition win or lose before yous buy the contract.
Protect your profits
Sell your long-term contracts before expiry to protect any profits you may have made or to minimise your losses.
Receive quotes for a trade and countertrade, so y’all always get unbiased, transparent rates.
Ideal for new and experienced traders
Low minimum stakes
Deposit as footling as 5 USD to start trading.
Trade according to your preferred strategy
Trade based on “gut feel” or rely on technical and fundamental analysis.
Cull from over one million possible trade variations at any fourth dimension, and customise your trades according to your preferred strategy.
Earn the aforementioned proportional return on stakes of all values.
How to merchandise binary options
Binary options trading is relatively easy. Y’all tin purchase a contract in merely three steps:
Ascertain your position
Choose the market, merchandise type, elapsing, barrier, and payout.
Get your price
Receive instant prices based on your position.
Brand your trade
Buy the contract or re-define your position.
Footstep i: Define your position
The showtime step is to gear up the parameters of your trade. There are 5 trade parameters you need to arrange in lodge to receive a price for the contract:
Cull from four available markets:
Major and small pairs, plus Smart FX indices
All major worldwide stock indices sourced from the over-the-counter marketplace
Major commodities such as gold, silver, and oil
Our proprietary synthetic indices that simulate market forces
Choose from 3 main trade types:
Predict if the market will rise or autumn from its current level, or if it volition end higher or lower than a price target.
Touch on/No bear upon
Predict if the market will impact or not touch a price target.
Predict if the market will stay betwixt or go outside 2 toll targets.
Aside from the three master merchandise types in a higher place, you also get Asians and Digits trade types exclusively with our Synthetic Indices.
Set the length of your merchandise from 10 seconds to 365 days, whether you have a brusk-term or long-term view of the markets.
Fix bulwark(southward) to define your position and trigger the payout y’all’ll receive.
Choose the payout you wish to receive from correctly predicting this contract.
Stride 2: Go your price
The cost of the contract is automatically calculated by our patented pricing technology based on the parameters you’ve divers in Footstep 1. Our prices are benchmarked confronting the interbank options market place, so you always get the virtually competitive prices. This means that you’ll always receive fair and transparent pricing, whatever your position.
Step iii: Make your trade
When you are satisfied with the price that you receive, execute your trade immediately. With our unique platform, there’south no risk of ‘slippage’ or gaping markets. And most importantly, at that place are no hidden fees. Y’all can too sell back any long-term trades at whatever time to profit from favourable market atmospheric condition.
Types of trades
Binary.com offers the following trade types that volition help you execute your market place view or strategy:
There are 2 types of Up/Downward trades:
Predict that the market place volition ascent or fall from its current level.
Predict that the market will end college or lower than a toll target.
Touch/No bear on
Predict that the market place volition touch on or not impact a target any time during the contract period.
At that place are two types of In/Out trades:
Ends Betwixt/Ends Exterior
Predict that the market stops inside or outside ii cost targets at the cease of the time menstruum.
Stays Between/Goes Outside
Predict that the market stays inside or goes outside two price targets whatever time during the contract period.
Predict that the market place will cease college or lower than the average price.
Predict the last decimal digit of the spot cost with Digits. At that place are three types of Digits trades:
Predict that the last digit will match or not match.
Predict that the last digit is an even number or odd number after the last tick.
Predict that the last digit is higher or lower.
Reset Call/Reset Put
There are ii types of reset trades:
Predict that the market will end up higher than either the current level or the level at a predetermined time (reset time).
Predict that the market volition end up lower than either the current level or the level at a predetermined time (reset time).
At reset time, if the spot is in the opposite direction of your prediction, the barrier is reset to that spot.
High Ticks/Low Ticks
Purchase High Tick/Low Tick contracts to predict the highest or lowest tick amid the side by side five ticks.
Only Ups/Only Downs
Available trade types:
Win payout if consecutive ticks rise successively. Contract is lost when at least 1 tick falls or is equal to any of the previous ticks.
Win payout if consecutive ticks autumn successively. Contract is lost when at least 1 tick rises or is equal to any of the previous ticks.
Delight notation that Asians, Digits, Reset Phone call/Reset Put, High Ticks/Low Ticks, and Only Ups/Only Downs are available exclusively with our Synthetic Indices.
Range of markets
Binary options allow y’all to trade on a wide range of underlying markets. One of the advantages of trading binary options is that y’all are not buying or selling an actual asset, only a contract that determines how that asset performs over a period of time. This limits your take chances and makes it easy for anyone to start trading.
Major pairs, minor pairs, and Smart FX indices.
Major worldwide stock indices sourced from the OTC market.
All 4 precious metals, plus energy.
Synthetic indices that mimic market volatility.
Merchandise popular major and minor currency pairs, plus Smart FX indices – weighted indices that measure the value of a currency against a basket of major currencies.
There are four types of Smart FX indices that you can trade:
- AUD Index – Measures the value of the Australian dollar against a handbasket of v global currencies (USD, EUR, GBP, JPY, CAD), each weighted by 20%
- EUR Index – Measures the value of the Euro against a handbasket of v global currencies (USD, AUD, GBP, JPY, CAD), each weighted by 20%
- GBP Index – Measures the value of the British Pound against a basket of v global currencies (USD, EUR, AUD, JPY, CAD), each weighted by 20%
- USD Index – Measures the value of the U.s.a. dollar confronting a handbasket of v global currencies (EUR, GBP, JPY, CAD, AUD), each weighted by xx%
Enjoy exciting opportunities to merchandise stock indices with the benefit 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.
We offer all iv precious metals – gold, silver, palladium, and platinum – likewise as energy in our list of bolt.
Binary.com’s Synthetic Indices are synthetic indices that mimic real-globe market volatility and are available for trading 24/7. They are based on a cryptographically secure random number generator audited for fairness by an contained third party.
Constructed Indices requite yous exclusive access to various trade types, such as Upwardly/Down, Bear upon/No Touch, In/Out, Asians, Digits, Lookbacks, Reset Call/Reset Put, Phone call Spread/Put Spread, Only Ups/Merely Downs, and more.
Synthetic Indices are farther categorised into 2 classes:
- Continuous Indices – Choose from the Volatility ten (1s) Index, Volatility 25 (1s) Alphabetize, Volatility fifty (1s) Alphabetize, Volatility 75 (1s) Index, Volatility 100 (1s) Index, Volatility 10 Index, Volatility 25 Alphabetize, Volatility 50 Index, Volatility 75 Alphabetize, and Volatility 100 Index. These indices correspond to fake 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 tendency with a constant volatility. The Balderdash Market and Bear Market indices outset at 00:00 GMT each day, replicating bullish and bearish markets respectively.
The bulwark of a binary option trade is the price target yous set for the underlying. You tin can cull trades that stay beneath or get above a cost target, or stay between ii targets.
A binary choice is a contract purchased by a trader, which pays a pre-determined corporeality if their prediction is correct.
Commodities are resources that are grown or extracted from the ground, such as silver, gold and oil. On Binary.com, they are priced in US dollars.
The contract period is the timeframe of a trade. Information technology is also called the duration.
A derivative is a financial instrument whose value is determined by reference to an underlying market. Derivatives are normally traded in the inter-bank market, and binaries are one of the simplest forms of derivatives.
The duration is the length of a purchased trade (run across ‘contract flow’).
Ends Betwixt/Ends Outside trades
An Ends Between trade pays out if the marketplace exit toll is strictly college than the low price target AND strictly lower than the high price target. An Ends Outside binary pays out if the marketplace leave toll is EITHER strictly college than the high cost target OR strictly lower than the depression price target.
Entry spot price
The entry spot price is the starting cost of the trade purchased by a trader.
The expiry price is the price of the underlying when the contract expires.
In strange substitution markets, traders can enter contracts based on the change in price of one currency equally it relates to another currency. For example if a trader selects Ascent 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 stands for Greenwich Mean Time, the official time used in the UK during wintertime. In summertime, the UK changes to British Summer Time, which is GMT + i hour. All times on the Binary.com site use GMT all yr round.
These are trades where the trader predicts if a market will finish college or lower than a specified toll target.
Stock market place indices measure the value of a choice of companies in the stock market.
These are trades where the trader selects a low and loftier barrier, and predicts if the market volition stay inside these barriers or get exterior them (see too ‘Stays Between/Goes Outside trades’).
Market go out price
The market exit price is the price in result at the end of the contract period.
No Affect trades
These are trades where the trader selects a price target, and predicts that the marketplace will never bear on the target before the expiry of the trade.
(One) Touch trades
These are trades where the trader selects a price target, and predicts that the market will touch the target before the expiry of the trade.
The payout is the corporeality paid to an options trader if their prediction is right.
Pip stands for ‘pct in point’ which is generally the fourth decimal place (i.e. 0.0001).
Turn a profit
The profit is the departure between the purchase price (the pale) and the payout on a winning trade.
The constructed indices simulate various real market place situations and provide an ideal platform for getting used to trading and testing strategies under various market place weather. These indices depend on volatility and drift, and help users to try out scenarios like – high volatility, low volatility, bullish and bearish trends.
The resale price indicates a contract’s current market cost. Resale prices are on a best-efforts ground and may non exist available at all times later on purchase. Meet ‘Sell option’ for more than details on selling contracts before expiry.
The return is the money realized when the contract expires (see ‘Payout’).
These are trades where the trader predicts if a market will rise or fall at the end of a selected fourth dimension menstruum.
It is sometimes possible to sell an option earlier the expiry of a trade, just only if a off-white price can be determined. If this pick is available, you will see a ‘Sell’ button within the popup window, later on clicking on the ‘View’ button next to your trade in the portfolio.
This is the current cost at which an underlying can be bought or sold at a particular fourth dimension.
The pale is the amount that a trader must pay to enter into a trade.
Stays Between/Goes Exterior trades
A Stays Betwixt trade pays out if the market stays betwixt (does not touch) BOTH the high bulwark or the depression barrier at any fourth dimension during the period chosen by a trader. A Goes Exterior trade pays out if the market touches EITHER the high barrier or the depression bulwark at whatever fourth dimension during the menses chosen by a trader.
A tick is the minimum upward or downward movement in the price of a marketplace.
Each binary option is a prediction on the futurity movement of an underlying market.