What are binary options
A binary pick is a type of pick with a fixed payout in which you predict the outcome from two possible results. If your prediction is correct, yous receive the agreed payout. If non, you lose your initial stake, and nil more. It’southward called ‘binary’ considering at that place can be only ii outcomes – win or lose.
Advantages of binary options trading
Aside from the simplicity of its ‘yes or no’ proposition, binary options trading is besides very flexible. It gives you the power to trade:
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All markets
Trade on underlying markets that include forex, stock indices, commodities, and more.
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All market conditions
Predict marketplace motion using up/downwardly, affect/no touch, and in/out trade types.
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All durations
Take a short-term or long-term view with trade durations from 10 seconds to 365 days.
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All payouts
Earn payouts up to 50,000 USD. Losses are limited to your initial pale and zero more than.
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.
Honor-winning online trading platform
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Simple and intuitive
Savour a trading platform that’s easy to navigate and employ. -
Instant admission
Open an account and commencement trading in minutes. -
Available 24/7
Trade when you want. Our Synthetic Indices are available even on weekends. -
Patented applied science
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 e’er secure.
All conditions and durations
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All markets and weather
Trade currencies, stock indices, bolt and more in ascent, falling, sideways, quiet, and volatile markets. -
Short to long-term durations
Choose timeframes from ten seconds to 365 days.
Competitive and transparent pricing
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Precipitous, benchmarked prices
Receive prices that are benchmarked against interbank rates. -
Transparent hazard and potential reward
Know how much you will win or lose earlier you purchase the contract. -
Protect your profits
Sell your long-term contracts earlier decease to protect any profits you may have made or to minimise your losses. -
Ii-way pricing
Receive quotes for a merchandise and countertrade, and so you always get unbiased, transparent rates.
Ideal for new and experienced traders
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Low minimum stakes
Eolith every bit niggling as 5 USD to start trading. -
Merchandise co-ordinate to your preferred strategy
Trade based on “gut feel” or rely on technical and primal analysis. -
Flexible
Cull from over ane million possible trade variations at whatever time, and customise your trades according to your preferred strategy. -
Scalable
Earn the same proportional return on stakes of all values.
How to trade binary options
Binary options trading is relatively easy. You can buy a contract in only three steps:
1
Define your position
Choose the market, trade blazon, 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 i: Define your position
The beginning pace is to set the parameters of your trade. There are v trade parameters you need to arrange in order to receive a cost for the contract:
Choose from four bachelor markets:
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Forex
Major and modest pairs, plus Smart FX indices -
Stock Indices
All major worldwide stock indices sourced from the over-the-counter market -
Bolt
Major commodities such as gilt, silver, and oil -
Constructed Indices
Our proprietary synthetic indices that simulate market forces
Choose from three main trade types:
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Upwardly/Down
Predict if the market place will ascent or autumn from its current level, or if it will cease college or lower than a price target. -
Affect/No touch
Predict if the marketplace will touch or not touch a price target. -
In/Out
Predict if the market will stay between or go outside 2 price targets.
Aside from the 3 main trade types higher up, you also become Asians and Digits trade types exclusively with our Synthetic Indices.
Set the length of your merchandise from 10 seconds to 365 days, whether you accept a brusque-term or long-term view of the markets.
Set up barrier(s) to define your position and trigger the payout you’ll receive.
Choose the payout you wish to receive from correctly predicting this contract.
Stride two: Go your toll
The price of the contract is automatically calculated by our patented pricing technology based on the parameters you’ve defined in Step i. Our prices are benchmarked confronting the interbank options market, so yous always get the almost competitive prices. This means that you’ll e’er receive fair and transparent pricing, whatsoever 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’s no gamble of ‘slippage’ or gaping markets. And most chiefly, there are no hidden fees. You can as well sell back any long-term trades at whatsoever time to turn a profit from favourable market conditions.
Types of trades
Binary.com offers the following trade types that will help you execute your market view or strategy:
Up/Downwards
There are two types of Up/Down trades:
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Rising/Fall
Predict that the market will ascent or autumn from its current level. -
Higher/Lower
Predict that the market volition end college or lower than a price target.
Touch/No touch
Predict that the market will touch or not touch a target whatsoever time during the contract menstruum.
In/Out
There are two types of In/Out trades:
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Ends Between/Ends Exterior
Predict that the market stops inside or outside two cost targets at the end of the time period. -
Stays Between/Goes Exterior
Predict that the market stays inside or goes outside 2 cost targets whatever time during the contract menses.
Asians
Predict that the market will stop higher or lower than the average cost.
Digits
Predict the terminal decimal digit of the spot price with Digits. There are three types of Digits trades:
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Matches/Differs
Predict that the last digit will match or not match. -
Even/Odd
Predict that the concluding digit is an fifty-fifty number or odd number afterward the last tick. -
Over/Under
Predict that the last digit is higher or lower.
Reset Telephone call/Reset Put
There are two types of reset trades:
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Reset Telephone call
Predict that the market will end upwardly college than either the current level or the level at a predetermined time (reset time). -
Reset Put
Predict that the market will cease upwards lower than either the electric current level or the level at a predetermined time (reset time).
At reset fourth dimension, if the spot is in the opposite direction of your prediction, the bulwark is reset to that spot.
Loftier Ticks/Low Ticks
Purchase Loftier Tick/Low Tick contracts to predict the highest or everyman tick among the adjacent v ticks.
But Ups/Only Downs
Available trade types:
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Only Ups
Win payout if consecutive ticks rising successively. Contract is lost when at least i tick falls or is equal to any of the previous ticks. -
Only Downs
Win payout if consecutive ticks fall successively. Contract is lost when at least 1 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 you lot to trade on a broad range of underlying markets. I of the advantages of trading binary options is that you are not buying or selling an actual nugget, only a contract that determines how that asset performs over a menses of time. This limits your chance and makes it easy for anyone to offset trading.
Available markets
Forex
Major pairs, minor pairs, and Smart FX indices.
Stock Indices
Major worldwide stock indices sourced from the OTC market.
Bolt
All four precious metals, plus energy.
Synthetic Indices
Synthetic indices that mimic market place volatility.
Forex
Merchandise popular major and minor currency pairs, plus Smart FX indices – weighted indices that mensurate the value of a currency against a basket of major currencies.
There are iv types of Smart FX indices that you lot 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 Alphabetize – 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 basket of five global currencies (USD, EUR, AUD, JPY, CAD), each weighted by 20%
- USD Alphabetize – Measures the value of the U.s.a. dollar confronting a basket of v global currencies (EUR, GBP, JPY, CAD, AUD), each weighted by 20%
Stock Indices
Savor heady opportunities to trade stock indices with the benefit of real-time charts and pricing.
Our stock indices are sourced from the over-the-counter (OTC) market place – 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 four precious metals – golden, argent, palladium, and platinum – as well as energy in our list of bolt.
Synthetic Indices
Binary.com’south Synthetic Indices are synthetic indices that mimic existent-world marketplace volatility and are available for trading 24/7. They are based on a cryptographically secure random number generator audited for fairness by an independent third party.
Synthetic Indices give yous exclusive admission to various merchandise types, such as Up/Down, Touch/No Touch on, In/Out, Asians, Digits, Lookbacks, Reset Phone call/Reset Put, Call Spread/Put Spread, Only Ups/Simply Downs, and more.
Synthetic Indices are further categorised into two classes:
- Continuous Indices – Choose from the Volatility 10 (1s) Alphabetize, Volatility 25 (1s) Index, Volatility fifty (1s) Index, Volatility 75 (1s) Alphabetize, Volatility 100 (1s) Index, Volatility x Index, Volatility 25 Index, Volatility fifty Alphabetize, Volatility 75 Index, and Volatility 100 Index. These indices represent to fake markets with constant volatilities of ten%, 25%, 50%, 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 indices showtime at 00:00 GMT each day, replicating bullish and bearish markets respectively.
Glossary
Barrier(due south)
The barrier of a binary option trade is the price target you ready for the underlying. You tin cull trades that stay below or go to a higher place a price target, or stay betwixt ii targets.
Binary selection
A binary option is a contract purchased by a trader, which pays a pre-determined amount if their prediction is correct.
Commodities
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.
Contract period
The contract period is the timeframe of a trade. It is also called the duration.
Derivative
A derivative is a financial musical instrument whose value is adamant by reference to an underlying market. Derivatives are commonly traded in the inter-bank market, and binaries are 1 of the simplest forms of derivatives.
Duration
The duration is the length of a purchased trade (see ‘contract menses’).
Ends Betwixt/Ends Outside trades
An Ends Between trade pays out if the market exit price is strictly college than the low cost target AND strictly lower than the high price target. An Ends Exterior binary pays out if the market go out toll is EITHER strictly college than the high price target OR strictly lower than the low price target.
Entry spot toll
The entry spot price is the starting toll of the trade purchased past a trader.
Expiry price
The expiry cost is the cost of the underlying when the contract expires.
Forex
In foreign commutation markets, traders can enter contracts based on the change in toll of one currency as it relates to another currency. For example if a trader selects Ascension in the EUR/USD market, they are predicting that the value of the Euro will ascent in relation to the value of the Us dollar.
GMT
GMT stands for Greenwich Mean Time, the official time used in the Uk during winter. In summertime, the U.k. changes to British Summer Fourth dimension, which is GMT + 1 60 minutes. All times on the Binary.com site use GMT all year circular.
College/Lower trades
These are trades where the trader predicts if a market will stop higher or lower than a specified price target.
Stock Indices
Stock marketplace indices measure the value of a selection of companies in the stock market.
In/Out trades
These are trades where the trader selects a depression and high bulwark, and predicts if the market will stay within these barriers or go outside them (see likewise ‘Stays Between/Goes Outside trades’).
Market place get out price
The marketplace exit price is the cost in effect at the end of the contract period.
No Touch trades
These are trades where the trader selects a price target, and predicts that the market will never touch the target before the expiry of the trade.
(One) Touch trades
These are trades where the trader selects a toll target, and predicts that the marketplace will touch the target before the decease of the trade.
Payout
The payout is the amount paid to an options trader if their prediction is correct.
Pip
Pip stands for ‘per centum in bespeak’ which is generally the quaternary decimal place (i.e. 0.0001).
Turn a profit
The turn a profit is the deviation betwixt the purchase cost (the stake) 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 market conditions. These indices depend on volatility and drift, and aid users to try out scenarios like – loftier volatility, depression volatility, bullish and bearish trends.
Resale price
The resale price indicates a contract’southward current market cost. Resale prices are on a best-efforts footing and may not exist available at all times afterward purchase. Meet ‘Sell choice’ for more than details on selling contracts earlier decease.
Return
The return is the money realized when the contract expires (run across ‘Payout’).
Rising/Autumn trades
These are trades where the trader predicts if a market will rise or fall at the end of a selected time period.
Sell choice
Information technology is sometimes possible to sell an option before the expiry of a trade, but only if a fair price can be determined. If this choice is available, you will see a ‘Sell’ button inside the popup window, subsequently clicking on the ‘View’ button side by side to your trade in the portfolio.
Spot cost
This is the current price at which an underlying tin be bought or sold at a particular fourth dimension.
Stake
The stake is the amount that a trader must pay to enter into a trade.
Stays Between/Goes Outside trades
A Stays Between trade pays out if the market place stays between (does not touch on) BOTH the high barrier or the low bulwark at whatsoever time during the period chosen by a trader. A Goes Outside trade pays out if the market touches EITHER the high barrier or the depression barrier at whatsoever time during the menstruation chosen by a trader.
Tick
A tick is the minimum upward or downward movement in the price of a market.
Underlying
Each binary option is a prediction on the future move of an underlying market place.
Source: https://www.binary.com/en/get-started/binary-options.html