What are binary options
A binary option is a type of option with a fixed payout in which you predict the outcome from ii possible results. If your prediction is correct, yous receive the agreed payout. If non, yous lose your initial stake, and nil more. It’s called ‘binary’ because there can 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 lot the ability to trade:
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All markets
Trade on underlying markets that include forex, stock indices, bolt, and more.
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All market weather
Predict market place movement using up/down, touch on/no touch, and in/out trade types.
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All durations
Accept a brusque-term or long-term view with trade durations from 10 seconds to 365 days.
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All payouts
Earn payouts up to l,000 USD. Losses are limited to your initial pale and zippo more.
Why you should trade binary options with Binary.com
Enjoy an accolade-winning online trading platform with trading conditions that are platonic for new and experienced traders.
Accolade-winning online trading platform
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Simple and intuitive
Savour a trading platform that’south easy to navigate and use. -
Instant admission
Open an account and showtime trading in minutes. -
Available 24/7
Merchandise when you want. Our Constructed Indices are available even on weekends. -
Patented engineering science
Trade with the manufacture pioneer and holder of a patented pricing technology. -
Security and privacy
Trade confidently, knowing that your personal information, transactions, and funds are always secure.
All conditions and durations
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All markets and conditions
Trade currencies, stock indices, commodities and more in ascension, falling, sideways, quiet, and volatile markets. -
Brusk to long-term durations
Choose timeframes from 10 seconds to 365 days.
Competitive and transparent pricing
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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 y’all purchase the contract. -
Protect your profits
Sell your long-term contracts earlier death to protect whatsoever profits you may have fabricated or to minimise your losses. -
Two-fashion pricing
Receive quotes for a trade and countertrade, then you ever become unbiased, transparent rates.
Ideal for new and experienced traders
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Low minimum stakes
Deposit every bit little equally 5 USD to outset trading. -
Merchandise according to your preferred strategy
Trade based on “gut experience” or rely on technical and primal analysis. -
Flexible
Choose from over i million possible trade variations at any time, and customise your trades co-ordinate to your preferred strategy. -
Scalable
Earn the same proportional render on stakes of all values.
How to trade binary options
Binary options trading is relatively easy. You tin can purchase a contract in simply iii steps:
one
Ascertain your position
Choose the market, trade type, duration, barrier, and payout.
2
Get your price
Receive instant prices based on your position.
3
Make your trade
Buy the contract or re-define your position.
Step ane: Define your position
The beginning step is to set the parameters of your merchandise. At that place are five trade parameters y’all need to conform in order to receive a cost for the contract:
Cull from iv available markets:
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Forex
Major and minor pairs, plus Smart FX indices -
Stock Indices
All major worldwide stock indices sourced from the over-the-counter market -
Commodities
Major commodities such every bit gilt, silverish, and oil -
Constructed Indices
Our proprietary synthetic indices that simulate market forces
Choose from iii chief trade types:
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Up/Down
Predict if the market will rise or fall from its current level, or if it will terminate higher or lower than a price target. -
Bear on/No touch on
Predict if the market will touch or not bear on a price target. -
In/Out
Predict if the market will stay between or go outside ii cost targets.
Aside from the three main trade types higher up, you also go Asians and Digits trade types exclusively with our Synthetic Indices.
Gear up the length of your trade from 10 seconds to 365 days, whether yous accept a short-term or long-term view of the markets.
Prepare barrier(s) to ascertain your position and trigger the payout y’all’ll receive.
Cull the payout you wish to receive from correctly predicting this contract.
Footstep 2: Get your price
The cost of the contract is automatically calculated by our patented pricing engineering based on the parameters you’ve defined in Stride 1. Our prices are benchmarked against the interbank options market, so you lot always get the most competitive prices. This ways that you’ll always receive fair and transparent pricing, whatever your position.
Step 3: Make your trade
When y’all are satisfied with the price that you lot receive, execute your trade immediately. With our unique platform, there’s no risk of ‘slippage’ or gaping markets. And near importantly, there are no hidden fees. You tin can also sell dorsum any long-term trades at whatever time to turn a profit from favourable market weather.
Types of trades
Binary.com offers the following trade types that will assistance you execute your market view or strategy:
Up/Downwardly
There are two types of Upwardly/Down trades:
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Rise/Fall
Predict that the market will ascension or fall from its current level. -
Higher/Lower
Predict that the market will end higher or lower than a cost target.
Touch/No affect
Predict that the market will bear on or not touch a target any time during the contract flow.
In/Out
There are two types of In/Out trades:
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Ends Between/Ends Outside
Predict that the market stops within or outside two price targets at the end of the time period. -
Stays Betwixt/Goes Outside
Predict that the market stays inside or goes outside 2 toll targets any time during the contract catamenia.
Asians
Predict that the marketplace volition end higher or lower than the average toll.
Digits
Predict the last decimal digit of the spot price with Digits. There are three types of Digits trades:
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Matches/Differs
Predict that the terminal digit volition match or non match. -
Even/Odd
Predict that the last digit is an even number or odd number later the last tick. -
Over/Under
Predict that the last digit is higher or lower.
Reset Call/Reset Put
There are two types of reset trades:
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Reset Phone call
Predict that the marketplace will finish up higher than either the current level or the level at a predetermined time (reset time). -
Reset Put
Predict that the market will stop 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 management of your prediction, the bulwark is reset to that spot.
Loftier Ticks/Low Ticks
Purchase High Tick/Low Tick contracts to predict the highest or lowest tick amid the next 5 ticks.
But Ups/Only Downs
Available trade types:
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Only Ups
Win payout if consecutive ticks rise successively. Contract is lost when at least one tick falls or is equal to any of the previous ticks. -
But Downs
Win payout if sequent ticks autumn successively. Contract is lost when at least ane tick rises or is equal to any of the previous ticks.
Please note that Asians, Digits, Reset Call/Reset Put, High Ticks/Low Ticks, and Only Ups/Only Downs are available exclusively with our Constructed Indices.
Range of markets
Binary options allow you to trade on a wide range of underlying markets. 1 of the advantages of trading binary options is that you are not buying or selling an actual asset, only a contract that determines how that asset performs over a menses of time. This limits your take chances and makes it easy for anyone to offset trading.
Available markets
Forex
Major pairs, modest pairs, and Smart FX indices.
Stock Indices
Major worldwide stock indices sourced from the OTC market.
Commodities
All four precious metals, plus energy.
Synthetic Indices
Synthetic indices that mimic market volatility.
Forex
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.
In that location are 4 types of Smart FX indices that y’all can merchandise:
- AUD Alphabetize – Measures the value of the Australian dollar against a basket 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 by twenty%
- GBP Alphabetize – Measures the value of the British Pound against a handbasket of five global currencies (USD, EUR, AUD, JPY, CAD), each weighted by xx%
- USD Index – Measures the value of the US dollar against a basket of five global currencies (EUR, GBP, JPY, CAD, AUD), each weighted past 20%
Stock Indices
Enjoy heady opportunities to trade stock indices with the do good of existent-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 iv precious metals – aureate, silverish, palladium, and platinum – too as energy in our listing of commodities.
Synthetic Indices
Binary.com’s Synthetic Indices are synthetic indices that mimic existent-world market volatility and are bachelor for trading 24/7. They are based on a cryptographically secure random number generator audited for fairness by an independent third political party.
Synthetic Indices give you exclusive access to various trade types, such as Up/Down, Touch/No Touch, In/Out, Asians, Digits, Lookbacks, Reset Telephone call/Reset Put, Call Spread/Put Spread, Only Ups/Only Downs, and more than.
Synthetic Indices are further categorised into two classes:
- Continuous Indices – Choose from the Volatility 10 (1s) Index, Volatility 25 (1s) Alphabetize, Volatility 50 (1s) Index, Volatility 75 (1s) Index, Volatility 100 (1s) Index, Volatility ten Index, Volatility 25 Index, Volatility 50 Index, Volatility 75 Alphabetize, and Volatility 100 Alphabetize. 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 tendency with a abiding volatility. The Bull Market and Deport Market indices start at 00:00 GMT each day, replicating bullish and bearish markets respectively.
Glossary
Barrier(southward)
The bulwark of a binary option trade is the toll target you set for the underlying. You can cull trades that stay beneath or go to a higher place a price target, or stay between two targets.
Binary option
A binary selection is a contract purchased by a trader, which pays a pre-adamant corporeality if their prediction is correct.
Commodities
Commodities are resources that are grown or extracted from the basis, such as silver, gold and oil. On Binary.com, they are priced in US dollars.
Contract period
The contract menses is the timeframe of a trade. It is also called the duration.
Derivative
A derivative is a financial instrument whose value is adamant by reference to an underlying market. Derivatives are commonly traded in the inter-depository financial institution market, and binaries are one of the simplest forms of derivatives.
Duration
The duration is the length of a purchased trade (see ‘contract period’).
Ends Between/Ends Exterior trades
An Ends Betwixt trade pays out if the market leave price is strictly higher than the low price target AND strictly lower than the high price target. An Ends Outside binary pays out if the market exit toll is EITHER strictly higher than the high price target OR strictly lower than the low price target.
Entry spot price
The entry spot price is the starting price of the trade purchased past a trader.
Decease toll
The expiry price is the price of the underlying when the contract expires.
Forex
In foreign exchange markets, traders tin can enter contracts based on the modify in cost of 1 currency as it relates to another currency. For example if a trader selects Rise in the EUR/USD market, they are predicting that the value of the Euro will rising in relation to the value of the US dollar.
GMT
GMT stands for Greenwich Hateful Time, the official time used in the United kingdom during winter. In summer, the UK changes to British Summer Time, which is GMT + ane hr. All times on the Binary.com site use GMT all year round.
Higher/Lower trades
These are trades where the trader predicts if a market 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 low and loftier barrier, and predicts if the market volition stay within these barriers or become exterior them (come across as well ‘Stays Between/Goes Outside trades’).
Market exit toll
The market exit price is the price in outcome at the end of the contract period.
No Bear on trades
These are trades where the trader selects a toll target, and predicts that the market will never affect the target before the decease of the trade.
(Ane) 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.
Payout
The payout is the amount paid to an options trader if their prediction is correct.
Pip
Pip stands for ‘percentage in point’ which is mostly the fourth decimal place (i.eastward. 0.0001).
Profit
The turn a profit is the departure between the purchase cost (the pale) and the payout on a winning trade.
Synthetic Indices
The synthetic indices simulate diverse real market situations and provide an ideal platform for getting used to trading and testing strategies under various marketplace atmospheric condition. These indices depend on volatility and migrate, and help users to try out scenarios like – loftier volatility, low volatility, bullish and bearish trends.
Resale price
The resale price indicates a contract’s current market price. Resale prices are on a best-efforts basis and may non be available at all times afterwards purchase. See ‘Sell option’ for more details on selling contracts before death.
Render
The return is the money realized when the contract expires (see ‘Payout’).
Ascension/Fall trades
These are trades where the trader predicts if a market will rise or fall at the finish of a selected time period.
Sell option
Information technology is sometimes possible to sell an option before the decease of a trade, only only if a fair price tin can be determined. If this option is available, you will see a ‘Sell’ button inside the popup window, after clicking on the ‘View’ push 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 merchandise.
Stays Between/Goes Outside trades
A Stays Betwixt trade pays out if the marketplace stays between (does not bear on) BOTH the high bulwark or the low barrier at any time during the period chosen by a trader. A Goes Outside trade pays out if the marketplace touches EITHER the high barrier or the low barrier at whatever time during the period called by a trader.
Tick
A tick is the minimum upwards or downward movement in the toll of a market.
Underlying
Each binary selection is a prediction on the future movement of an underlying market place.
Source: https://www.binary.com/en/get-started/binary-options.html