What are binary options
A binary option is a blazon of choice with a stock-still payout in which you predict the outcome from 2 possible results. If your prediction is right, y’all receive the agreed payout. If not, you lose your initial stake, and nothing more than. It’southward called ‘binary’ because there can exist only two outcomes – win or lose.
Advantages of binary options trading
Bated from the simplicity of its ‘aye or no’ proposition, binary options trading is also very flexible. It gives you the power to trade:
Trade on underlying markets that include forex, stock indices, commodities, and more.
All market place weather condition
Predict market place move using up/down, touch/no touch, and in/out trade types.
Take a curt-term or long-term view with merchandise durations from x seconds to 365 days.
Earn payouts up to l,000 USD. Losses are limited to your initial pale and zip more.
Why you should trade binary options with Binary.com
Enjoy an award-winning online trading platform with trading conditions that are ideal for new and experienced traders.
Award-winning online trading platform
Uncomplicated and intuitive
Enjoy a trading platform that’south like shooting fish in a barrel to navigate and use.
Open an account and offset trading in minutes.
Trade when y’all want. Our Synthetic Indices are available even on weekends.
Trade with the industry pioneer and holder of a patented pricing technology.
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, 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
Precipitous, benchmarked prices
Receive prices that are benchmarked confronting interbank rates.
Transparent risk and potential reward
Know how much you will win or lose before 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 merchandise and countertrade, so you always get unbiased, transparent rates.
Ideal for new and experienced traders
Low minimum stakes
Eolith as trivial every bit 5 USD to commencement trading.
Trade according to your preferred strategy
Trade based on “gut experience” or rely on technical and primal assay.
Cull from over 1 million possible trade variations at any fourth dimension, and customise your trades co-ordinate to your preferred strategy.
Earn the same proportional return on stakes of all values.
How to merchandise binary options
Binary options trading is relatively easy. You tin can buy a contract in just three steps:
Ascertain your position
Cull the market place, trade blazon, duration, barrier, and payout.
Get your price
Receive instant prices based on your position.
Brand your trade
Buy the contract or re-define your position.
Step 1: Ascertain your position
The first step is to set the parameters of your trade. There are v merchandise parameters y’all need to adjust in order to receive a price for the contract:
Choose from four available markets:
Major and pocket-sized pairs, plus Smart FX indices
All major worldwide stock indices sourced from the over-the-counter market
Major commodities such as gold, silver, and oil
Our proprietary synthetic indices that simulate market forces
Choose from three chief trade types:
Predict if the market place volition rising or autumn from its current level, or if information technology will end college or lower than a cost target.
Impact/No touch on
Predict if the market place will touch or not touch a price target.
Predict if the market will stay between or go outside two price targets.
Bated from the three main trade types above, you also get Asians and Digits trade types exclusively with our Synthetic Indices.
Set up the length of your trade from 10 seconds to 365 days, whether you have a short-term or long-term view of the markets.
Fix barrier(s) to ascertain your position and trigger the payout you’ll receive.
Choose the payout y’all wish to receive from correctly predicting this contract.
Pace ii: Become your cost
The cost of the contract is automatically calculated by our patented pricing technology based on the parameters yous’ve defined in Step one. Our prices are benchmarked against the interbank options market, then you always get the most competitive prices. This means that you’ll always receive fair and transparent pricing, whatever your position.
Stride 3: Brand your trade
When y’all are satisfied with the price that you receive, execute your trade immediately. With our unique platform, there’s no adventure of ‘slippage’ or gaping markets. And most chiefly, there are no hidden fees. Y’all tin can too sell back any long-term trades at any fourth dimension to profit from favourable market conditions.
Types of trades
Binary.com offers the following merchandise types that volition help you execute your market view or strategy:
There are two types of Up/Down trades:
Predict that the market will rise or autumn from its current level.
Predict that the market will end higher or lower than a price target.
Predict that the marketplace will touch or not bear on a target any time during the contract period.
At that place are two types of In/Out trades:
Ends Betwixt/Ends Outside
Predict that the market stops inside or outside ii price targets at the end of the time period.
Stays Between/Goes Outside
Predict that the market stays inside or goes outside two price targets whatever fourth dimension during the contract catamenia.
Predict that the marketplace will stop college or lower than the average price.
Predict the last decimal digit of the spot price with Digits. At that place are iii types of Digits trades:
Predict that the last digit will friction match or non match.
Predict that the concluding digit is an even number or odd number later the final tick.
Predict that the last digit is higher or lower.
Reset Call/Reset Put
There are two types of reset trades:
Reset Phone call
Predict that the market volition end up higher than either the current level or the level at a predetermined time (reset fourth dimension).
Predict that the market volition stop up lower than either the electric current level or the level at a predetermined time (reset time).
At reset time, if the spot is in the reverse direction of your prediction, the bulwark is reset to that spot.
High Ticks/Low Ticks
Buy High Tick/Low Tick contracts to predict the highest or lowest tick among the next five ticks.
Only Ups/Only Downs
Available merchandise types:
Win payout if consecutive ticks rising successively. Contract is lost when at least one tick falls or is equal to whatsoever 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 Call/Reset Put, High Ticks/Low Ticks, and Only Ups/Only Downs are bachelor 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 you are non buying or selling an bodily asset, only a contract that determines how that asset performs over a period of time. This limits your risk and makes it like shooting fish in a barrel for anyone to starting time trading.
Major pairs, minor pairs, and Smart FX indices.
Major worldwide stock indices sourced from the OTC market.
All four precious metals, plus energy.
Synthetic indices that mimic market place volatility.
Trade 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 merchandise:
- AUD Index – 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 20%
- GBP Alphabetize – Measures the value of the British Pound confronting 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 against a handbasket of v global currencies (EUR, GBP, JPY, CAD, AUD), each weighted by 20%
Enjoy exciting opportunities to trade 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 exterior of the centralised exchanges. Please annotation 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, silverish, palladium, and platinum – too as energy in our list of bolt.
Binary.com’s Synthetic Indices are synthetic indices that mimic existent-world market place volatility and are available for trading 24/seven. They are based on a cryptographically secure random number generator audited for fairness by an independent tertiary party.
Constructed Indices give yous exclusive access to various trade types, such equally Upwards/Down, Touch/No Bear upon, In/Out, Asians, Digits, Lookbacks, Reset Call/Reset Put, Call Spread/Put Spread, Just Ups/Only Downs, and more.
Constructed Indices are farther categorised into ii classes:
- Continuous Indices – Choose from the Volatility ten (1s) Index, Volatility 25 (1s) Index, Volatility fifty (1s) Alphabetize, Volatility 75 (1s) Index, Volatility 100 (1s) Index, Volatility 10 Alphabetize, Volatility 25 Index, Volatility 50 Index, Volatility 75 Index, and Volatility 100 Index. These indices correspond to simulated markets with abiding volatilities of 10%, 25%, fifty%, 75%, and 100% respectively.
- Daily Reset Indices – Daily Reset Indices replicate markets with a bullish and bearish trend with a constant volatility. The Bull Market and Bear Market place indices start at 00:00 GMT each 24-hour interval, replicating bullish and bearish markets respectively.
The bulwark of a binary option trade is the toll target you set for the underlying. You can choose trades that stay beneath or go to a higher place a cost target, or stay between two targets.
A binary option is a contract purchased by a trader, which pays a pre-adamant corporeality if their prediction is correct.
Commodities are resources that are grown or extracted from the ground, such equally silver, aureate and oil. On Binary.com, they are priced in United states dollars.
The contract period is the timeframe of a merchandise. It is also called the elapsing.
A derivative is a financial musical instrument whose value is determined by reference to an underlying market. Derivatives are ordinarily traded in the inter-banking concern market, 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 Between trade pays out if the market place exit price is strictly college than the depression price target AND strictly lower than the loftier cost target. An Ends Exterior binary pays out if the market go out price is EITHER strictly higher than the high price target OR strictly lower than the low price target.
Entry spot price
The entry spot cost is the starting price of the trade 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 change in price of one currency as it relates to another currency. For case if a trader selects Ascension in the EUR/USD marketplace, they are predicting that the value of the Euro will ascension in relation to the value of the Us dollar.
GMT stands for Greenwich Mean Fourth dimension, the official time used in the UK during winter. In summer, the UK changes to British Summer Time, which is GMT + i hr. All times on the Binary.com site utilize GMT all year round.
These are trades where the trader predicts if a market will terminate higher or lower than a specified price target.
Stock market indices mensurate the value of a option 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 within these barriers or go exterior them (come across also ‘Stays Between/Goes Outside trades’).
Market place exit price
The market exit price is the price in effect at the stop of the contract flow.
No Touch trades
These are trades where the trader selects a price target, and predicts that the market volition never affect the target before the expiry of the merchandise.
(One) Bear on trades
These are trades where the trader selects a price target, and predicts that the marketplace will impact the target earlier the expiry of the trade.
The payout is the amount paid to an options trader if their prediction is right.
Pip stands for ‘percent in point’ which is generally the fourth decimal place (i.e. 0.0001).
The profit is the difference between the buy price (the pale) and the payout on a winning trade.
The synthetic indices simulate various real market situations and provide an ideal platform for getting used to trading and testing strategies under various market place weather condition. These indices depend on volatility and migrate, and help users to attempt out scenarios like – high volatility, low volatility, bullish and bearish trends.
The resale price indicates a contract’south current market price. Resale prices are on a best-efforts ground and may not be bachelor at all times after purchase. Run into ‘Sell option’ for more 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 autumn at the end of a selected time menstruation.
It is sometimes possible to sell an option before the expiry of a merchandise, just only if a fair price can be determined. If this pick is bachelor, yous will see a ‘Sell’ push within the popup window, after clicking on the ‘View’ button next to your trade in the portfolio.
This is the current price at which an underlying can be bought or sold at a particular time.
The stake is the corporeality that a trader must pay to enter into a trade.
Stays Betwixt/Goes Outside trades
A Stays Between trade pays out if the market stays between (does non touch) BOTH the high barrier or the low bulwark at any fourth dimension during the period chosen past a trader. A Goes Outside trade pays out if the marketplace touches EITHER the high barrier or the low barrier at any time during the flow chosen by a trader.
A tick is the minimum upwardly or downwards move in the price of a market.
Each binary choice is a prediction on the future motility of an underlying market.