What are binary options
A binary option is a type of selection with a fixed payout in which you lot predict the outcome from two possible results. If your prediction is right, you receive the agreed payout. If not, you lose your initial pale, and nothing more. It’s called ‘binary’ because in that location tin be only two outcomes – win or lose.
Advantages of binary options trading
Aside from the simplicity of its ‘aye or no’ proffer, binary options trading is also very flexible. It gives you the ability to trade:
Trade on underlying markets that include forex, stock indices, bolt, and more than.
All marketplace conditions
Predict marketplace motility using up/downwards, bear upon/no touch, and in/out trade types.
Take a brusk-term or long-term view with merchandise durations from x seconds to 365 days.
Earn payouts up to fifty,000 USD. Losses are limited to your initial stake and nil more.
Why y’all should merchandise binary options with Binary.com
Enjoy an honor-winning online trading platform with trading weather that are platonic for new and experienced traders.
Accolade-winning online trading platform
Unproblematic and intuitive
Relish a trading platform that’s easy to navigate and use.
Open an account and first trading in minutes.
Trade when you want. Our Synthetic Indices are available fifty-fifty on weekends.
Trade with the industry pioneer and holder of a patented pricing applied 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.
Short to long-term durations
Choose timeframes from 10 seconds to 365 days.
Competitive and transparent pricing
Abrupt, benchmarked prices
Receive prices that are benchmarked against interbank rates.
Transparent adventure and potential reward
Know how much yous volition win or lose earlier you purchase the contract.
Protect your profits
Sell your long-term contracts before expiry to protect whatsoever profits you may have made or to minimise your losses.
Receive quotes for a trade and countertrade, then you always become unbiased, transparent rates.
Ideal for new and experienced traders
Low minimum stakes
Eolith as little as v USD to start trading.
Trade according to your preferred strategy
Merchandise based on “gut feel” or rely on technical and cardinal analysis.
Choose from over i million possible trade variations at whatever time, and customise your trades according to your preferred strategy.
Earn the aforementioned proportional return on stakes of all values.
How to trade binary options
Binary options trading is relatively easy. You can buy a contract in just 3 steps:
Define your position
Choose the market, trade blazon, duration, bulwark, and payout.
Get your price
Receive instant prices based on your position.
Brand your trade
Buy the contract or re-define your position.
Pace 1: Define your position
The outset step is to prepare the parameters of your trade. There are five trade parameters you demand to adjust in guild to receive a cost for the contract:
Choose from 4 bachelor markets:
Major and minor 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 place forces
Cull from three master trade types:
Predict if the market volition rise or fall from its electric current level, or if it will end higher or lower than a price target.
Bear on/No touch
Predict if the market will touch or non bear upon a price target.
Predict if the market volition stay between or go outside ii price targets.
Aside from the three main trade types above, you also get Asians and Digits trade types exclusively with our Synthetic Indices.
Ready the length of your trade from ten seconds to 365 days, whether you have a short-term or long-term view of the markets.
Gear up barrier(s) to define your position and trigger the payout you’ll receive.
Choose the payout y’all wish to receive from correctly predicting this contract.
Step 2: Get your toll
The price of the contract is automatically calculated past our patented pricing technology based on the parameters yous’ve defined in Step 1. Our prices are benchmarked against the interbank options market, and so y’all always get the most competitive prices. This ways that y’all’ll always receive fair and transparent pricing, any your position.
Step 3: Make your trade
When you are satisfied with the price that you receive, execute your trade immediately. With our unique platform, at that place’s no risk of ‘slippage’ or gaping markets. And most importantly, there are no hidden fees. Y’all can besides sell dorsum whatever long-term trades at any fourth dimension to profit from favourable market conditions.
Types of trades
Binary.com offers the post-obit merchandise types that volition help yous execute your market view or strategy:
In that location are 2 types of Upward/Downward trades:
Predict that the market will ascent or autumn from its current level.
Predict that the market will finish higher or lower than a cost target.
Affect/No bear upon
Predict that the market will touch or non impact a target any time during the contract period.
There are 2 types of In/Out trades:
Ends Betwixt/Ends Outside
Predict that the market stops within or outside two price targets at the end of the time menstruation.
Stays Betwixt/Goes Outside
Predict that the market stays inside or goes exterior two price targets any time during the contract menses.
Predict that the market place will end higher or lower than the boilerplate price.
Predict the last decimal digit of the spot cost with Digits. There are three types of Digits trades:
Predict that the concluding 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 concluding digit is higher or lower.
Reset Call/Reset Put
In that location are 2 types of reset trades:
Predict that the marketplace volition end up college than either the electric current level or the level at a predetermined fourth dimension (reset time).
Predict that the market will end up lower than either the electric current level or the level at a predetermined time (reset fourth dimension).
At reset fourth dimension, if the spot is in the opposite direction of your prediction, the bulwark is reset to that spot.
Loftier Ticks/Depression Ticks
Purchase High Tick/Low Tick contracts to predict the highest or lowest tick amid the next five ticks.
Simply Ups/Only Downs
Available merchandise types:
Win payout if sequent ticks rising successively. Contract is lost when at to the lowest degree one tick falls or is equal to whatever of the previous ticks.
Win payout if consecutive ticks fall successively. Contract is lost when at least one tick rises or is equal to any of the previous ticks.
Please note that Asians, Digits, Reset Phone call/Reset Put, High Ticks/Depression Ticks, and Merely Ups/Only Downs are available exclusively with our Synthetic Indices.
Range of markets
Binary options let you lot to trade on a wide range of underlying markets. One of the advantages of trading binary options is that you are non ownership or selling an bodily asset, only a contract that determines how that asset performs over a flow of time. This limits your adventure and makes it easy for anyone to start trading.
Major pairs, pocket-size pairs, and Smart FX indices.
Major worldwide stock indices sourced from the OTC market place.
All four precious metals, plus energy.
Synthetic indices that mimic market volatility.
Trade popular major and pocket-size currency pairs, plus Smart FX indices – weighted indices that measure the value of a currency confronting a basket of major currencies.
There are iv types of Smart FX indices that you tin can trade:
- AUD Index – Measures the value of the Australian dollar against a handbasket of five global currencies (USD, EUR, GBP, JPY, CAD), each weighted by 20%
- EUR Index – Measures the value of the Euro against 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 handbasket of five global currencies (USD, EUR, AUD, JPY, CAD), each weighted by 20%
- USD Index – Measures the value of the US dollar confronting a basket of 5 global currencies (EUR, GBP, JPY, CAD, AUD), each weighted by 20%
Bask heady opportunities to trade stock indices with the benefit of real-fourth dimension charts and pricing.
Our stock indices are sourced from the over-the-counter (OTC) market place – sources exterior 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 four precious metals – gold, silver, palladium, and platinum – too as energy in our list of commodities.
Binary.com’s Constructed Indices are synthetic indices that mimic existent-world market volatility and are available for trading 24/seven. They are based on a cryptographically secure random number generator audited for fairness by an independent third party.
Synthetic Indices give you exclusive access to various trade types, such every bit Upwardly/Down, Touch/No Impact, In/Out, Asians, Digits, Lookbacks, Reset Phone call/Reset Put, Telephone call Spread/Put Spread, Just Ups/Only Downs, and more.
Constructed Indices are further categorised into two classes:
- Continuous Indices – Choose from the Volatility x (1s) Index, Volatility 25 (1s) Index, Volatility fifty (1s) Index, Volatility 75 (1s) Alphabetize, Volatility 100 (1s) Alphabetize, Volatility 10 Alphabetize, Volatility 25 Index, Volatility 50 Index, Volatility 75 Alphabetize, and Volatility 100 Alphabetize. These indices correspond to simulated markets with constant volatilities of ten%, 25%, fifty%, 75%, and 100% respectively.
- Daily Reset Indices – Daily Reset Indices replicate markets with a bullish and bearish tendency with a constant volatility. The Bull Marketplace and Bear Market indices starting time at 00:00 GMT each day, replicating bullish and surly markets respectively.
The bulwark of a binary option trade is the toll target you set for the underlying. Y’all tin can choose trades that stay below or go above a price target, or stay betwixt two targets.
A binary pick is a contract purchased by a trader, which pays a pre-determined amount if their prediction is correct.
Commodities are resource that are grown or extracted from the basis, such as silver, gilt and oil. On Binary.com, they are priced in US dollars.
The contract flow is the timeframe of a trade. It is besides called the duration.
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 place, and binaries are one of the simplest forms of derivatives.
The duration is the length of a purchased trade (see ‘contract period’).
Ends Between/Ends Outside trades
An Ends Betwixt merchandise pays out if the market 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 market place get out price is EITHER strictly higher than the high toll target OR strictly lower than the low price target.
Entry spot price
The entry spot cost is the starting price of the merchandise purchased by a trader.
The expiry price is the price of the underlying when the contract expires.
In foreign exchange markets, traders tin can enter contracts based on the alter in cost of i currency equally information technology relates to some other currency. For example 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 United states of america dollar.
GMT stands for Greenwich Mean Time, the official time used in the UK during winter. In summer, the UK changes to British Summertime Time, which is GMT + i hour. All times on the Binary.com site utilize GMT all twelvemonth round.
These are trades where the trader predicts if a marketplace volition finish higher or lower than a specified toll target.
Stock market indices measure the value of a choice of companies in the stock market.
These are trades where the trader selects a low and high barrier, and predicts if the market volition stay inside these barriers or get outside them (see too ‘Stays Between/Goes Outside trades’).
Market exit price
The market leave cost is the price in event at the end of the contract period.
No Bear upon trades
These are trades where the trader selects a price target, and predicts that the market volition never touch the target before the expiry of the trade.
(One) Touch on trades
These are trades where the trader selects a cost target, and predicts that the market will impact the target before the expiry of the trade.
The payout is the amount paid to an options trader if their prediction is correct.
Pip stands for ‘pct in point’ which is generally the fourth decimal identify (i.due east. 0.0001).
The profit is the departure between the purchase toll (the pale) and the payout on a winning trade.
The constructed indices simulate diverse real market situations and provide an platonic platform for getting used to trading and testing strategies under diverse market conditions. These indices depend on volatility and drift, and help users to endeavour out scenarios like – high volatility, low volatility, bullish and bearish trends.
The resale toll indicates a contract’s current market price. Resale prices are on a best-efforts basis and may non be available at all times later on buy. Meet ‘Sell choice’ for more details on selling contracts earlier expiry.
The return is the money realized when the contract expires (run into ‘Payout’).
These are trades where the trader predicts if a market will rising or fall at the end of a selected time menstruation.
It is sometimes possible to sell an option earlier the death of a trade, just only if a off-white price can be determined. If this choice is bachelor, you will come across a ‘Sell’ button inside the popup window, later on clicking on the ‘View’ button next to your trade in the portfolio.
This is the current price at which an underlying can exist bought or sold at a detail time.
The stake is the amount that a trader must pay to enter into a merchandise.
Stays Betwixt/Goes Outside trades
A Stays Between trade pays out if the market stays between (does not touch on) BOTH the high barrier or the low bulwark at any fourth dimension during the flow chosen by a trader. A Goes Outside trade pays out if the market touches EITHER the high barrier or the low barrier at any time during the catamenia chosen by a trader.
A tick is the minimum upward or downward movement in the price of a marketplace.
Each binary selection is a prediction on the futurity movement of an underlying marketplace.