How Big Is Binary Options Market

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:

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.
• Instant access
  
  Open an account and offset trading in minutes.
• Available 24/7
  
  Trade when y’all want. Our Synthetic Indices are available even on weekends.
• Patented technology
  
  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.
• Two-style pricing
  
  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.
• Flexible
  
  Cull from over 1 million possible trade variations at any fourth dimension, and customise your trades co-ordinate 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 buy a contract in just three steps:

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:

• Forex
  
  Major and pocket-sized pairs, plus Smart FX indices
• Stock Indices
  
  All major worldwide stock indices sourced from the over-the-counter market
• Bolt
  
  Major commodities such as gold, silver, and oil
• Synthetic Indices
  
  Our proprietary synthetic indices that simulate market forces

Choose from three chief trade types:

• Upward/Down
  
  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.
• In/Out
  
  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:

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.

Available markets

Forex

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%

Stock Indices

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.

Bolt

We offer all four precious metals – gold, silverish, palladium, and platinum – too as energy in our list of bolt.

Synthetic Indices

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.

Glossary

Bulwark(s)

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.

Binary option

A binary option 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 ground, such equally silver, aureate and oil. On Binary.com, they are priced in United states dollars.

Contract flow

The contract period is the timeframe of a merchandise. It is also called the elapsing.

Derivative

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.

Duration

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.

Expiry price

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 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

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.

Higher/Lower trades

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

Stock Indices

Stock market indices mensurate the value of a option of companies in the stock market.

In/Out trades

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.

Payout

The payout is the amount paid to an options trader if their prediction is right.

Pip

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

Profit

The profit is the difference between the buy price (the pale) and the payout on a winning trade.

Synthetic Indices

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.

Resale toll

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.

Return

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

Rise/Fall trades

These are trades where the trader predicts if a market will rise or autumn at the end of a selected time menstruation.

Sell selection

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.

Spot price

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

Stake

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.

Tick

A tick is the minimum upwardly or downwards move in the price of a market.

Underlying

Each binary choice is a prediction on the future motility of an underlying market.