What are binary options
A binary option is a type of choice with a fixed payout in which you predict the event from 2 possible results. If your prediction is correct, you receive the agreed payout. If not, yous lose your initial pale, and naught more. It’s called ‘binary’ because there tin can exist merely 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 the power to merchandise:
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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 market place movement using up/downwards, touch on/no bear upon, and in/out merchandise types.
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All durations
Have a short-term or long-term view with merchandise durations from x seconds to 365 days.
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All payouts
Earn payouts upward to 50,000 USD. Losses are limited to your initial pale and nothing more than.
Why you should trade binary options with Binary.com
Enjoy an award-winning online trading platform with trading conditions that are platonic for new and experienced traders.
Award-winning online trading platform
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Simple and intuitive
Enjoy a trading platform that’s like shooting fish in a barrel to navigate and apply. -
Instant access
Open up an business relationship and start trading in minutes. -
Available 24/7
Merchandise when yous want. Our Synthetic Indices are bachelor even on weekends. -
Patented technology
Trade with the industry pioneer and holder of a patented pricing engineering. -
Security and privacy
Trade confidently, knowing that your personal data, transactions, and funds are always secure.
All conditions and durations
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All markets and atmospheric condition
Merchandise currencies, stock indices, commodities and more in rising, falling, sideways, placidity, and volatile markets. -
Short to long-term durations
Cull timeframes from ten seconds to 365 days.
Competitive and transparent pricing
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Sharp, benchmarked prices
Receive prices that are benchmarked confronting interbank rates. -
Transparent take chances 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 any profits y’all may have made or to minimise your losses. -
Two-way pricing
Receive quotes for a trade and countertrade, so you always get unbiased, transparent rates.
Ideal for new and experienced traders
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Depression minimum stakes
Deposit as little every bit 5 USD to start trading. -
Merchandise according to your preferred strategy
Trade based on “gut feel” or rely on technical and cardinal analysis. -
Flexible
Choose from over one million possible trade variations at whatsoever time, 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 can purchase a contract in just three steps:
1
Ascertain your position
Choose the marketplace, 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 1: Define your position
The get-go step is to set the parameters of your trade. At that place are v trade parameters you need to adjust in social club to receive a cost for the contract:
Cull from four bachelor markets:
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Forex
Major and small pairs, plus Smart FX indices -
Stock Indices
All major worldwide stock indices sourced from the over-the-counter market place -
Commodities
Major commodities such as gold, silver, and oil -
Synthetic Indices
Our proprietary synthetic indices that simulate market forces
Choose from 3 main trade types:
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Up/Downwardly
Predict if the market volition ascent or fall from its current level, or if it will terminate higher or lower than a price target. -
Touch/No bear upon
Predict if the market will touch or not touch on a price target. -
In/Out
Predict if the marketplace will stay between or go exterior two cost targets.
Aside from the three primary trade types to a higher place, yous also get Asians and Digits trade types exclusively with our Synthetic Indices.
Set the length of your trade from 10 seconds to 365 days, whether you have a brusque-term or long-term view of the markets.
Gear up barrier(s) to define your position and trigger the payout yous’ll receive.
Choose the payout you lot wish to receive from correctly predicting this contract.
Stride 2: Go your cost
The price of the contract is automatically calculated past our patented pricing applied science based on the parameters you lot’ve defined in Pace i. Our prices are benchmarked against the interbank options market, so you always get the well-nigh competitive prices. This means that you lot’ll always receive off-white and transparent pricing, whatever your position.
Step 3: Make your trade
When you lot are satisfied with the price that you receive, execute your merchandise immediately. With our unique platform, in that location’s no adventure of ‘slippage’ or gaping markets. And most importantly, there are no hidden fees. You lot can also sell back whatever long-term trades at any time to profit from favourable market conditions.
Types of trades
Binary.com offers the post-obit merchandise types that volition help you execute your market view or strategy:
Up/Downwardly
At that place are 2 types of Up/Downwards trades:
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Rising/Fall
Predict that the market volition ascension or fall from its current level. -
Higher/Lower
Predict that the market will end higher or lower than a price target.
Touch/No bear on
Predict that the market will touch or non touch a target whatever fourth dimension during the contract period.
In/Out
At that place are two types of In/Out trades:
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Ends Betwixt/Ends Outside
Predict that the market stops inside or exterior ii toll targets at the end of the time menstruation. -
Stays Between/Goes Exterior
Predict that the market stays inside or goes outside two toll targets whatever time during the contract menstruum.
Asians
Predict that the market volition end higher or lower than the boilerplate cost.
Digits
Predict the concluding decimal digit of the spot toll 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 last digit is an even 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 2 types of reset trades:
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Reset Call
Predict that the market volition terminate up higher than either the current level or the level at a predetermined time (reset fourth dimension). -
Reset Put
Predict that the market volition terminate 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.
High Ticks/Low Ticks
Buy High Tick/Low Tick contracts to predict the highest or everyman tick among the adjacent five ticks.
Only Ups/Only Downs
Available trade types:
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Simply Ups
Win payout if consecutive ticks rising successively. Contract is lost when at least one tick falls or is equal to any of the previous ticks. -
Only Downs
Win payout if sequent 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 Merely Ups/Only Downs are available exclusively with our Synthetic Indices.
Range of markets
Binary options allow yous to trade on a wide range of underlying markets. One 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 nugget performs over a period of time. This limits your risk and makes it piece of cake for anyone to start trading.
Bachelor markets
Forex
Major pairs, small pairs, and Smart FX indices.
Stock Indices
Major worldwide stock indices sourced from the OTC marketplace.
Bolt
All iv precious metals, plus energy.
Synthetic Indices
Synthetic indices that mimic market place volatility.
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.
In that location are four types of Smart FX indices that you can merchandise:
- AUD Index – Measures the value of the Australian dollar confronting a basket of five global currencies (USD, EUR, GBP, JPY, CAD), each weighted past twenty%
- 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 United states of america dollar against a basket of v global currencies (EUR, GBP, JPY, CAD, AUD), each weighted past twenty%
Stock Indices
Enjoy exciting 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 – 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.
Commodities
We offer all four precious metals – aureate, silver, palladium, and platinum – equally well every bit energy in our list of commodities.
Synthetic Indices
Binary.com’s Synthetic Indices are synthetic indices that mimic existent-globe 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 party.
Constructed Indices give you lot exclusive access to various merchandise types, such as Upwardly/Downwardly, Touch/No Touch, In/Out, Asians, Digits, Lookbacks, Reset Call/Reset Put, Telephone call Spread/Put Spread, Simply Ups/But Downs, and more.
Constructed Indices are further categorised into two classes:
- Continuous Indices – Choose from the Volatility ten (1s) Index, Volatility 25 (1s) Index, Volatility 50 (1s) Index, Volatility 75 (1s) Alphabetize, Volatility 100 (1s) Index, Volatility 10 Alphabetize, Volatility 25 Index, Volatility 50 Index, Volatility 75 Index, and Volatility 100 Alphabetize. These indices represent to imitation markets with constant volatilities of 10%, 25%, l%, 75%, and 100% respectively.
- Daily Reset Indices – Daily Reset Indices replicate markets with a bullish and surly tendency with a constant volatility. The Balderdash Market place and Behave Market indices get-go at 00:00 GMT each day, replicating bullish and bearish markets respectively.
Glossary
Barrier(s)
The bulwark of a binary option trade is the price target you set for the underlying. Yous can choose trades that stay below or go above a price target, or stay betwixt 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 as silver, golden and oil. On Binary.com, they are priced in United states of america dollars.
Contract flow
The contract flow is the timeframe of a trade. It is likewise chosen 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-bank market, and binaries are ane of the simplest forms of derivatives.
Duration
The elapsing is the length of a purchased trade (see ‘contract period’).
Ends Between/Ends Outside trades
An Ends Betwixt trade pays out if the market go out price is strictly college than the low cost target AND strictly lower than the high toll target. An Ends Outside binary pays out if the market exit price is EITHER strictly college than the high price target OR strictly lower than the low cost target.
Entry spot price
The entry spot price is the starting cost of the trade purchased by a trader.
Expiry toll
The expiry price is the price of the underlying when the contract expires.
Forex
In strange exchange markets, traders tin enter contracts based on the change in price of ane currency equally information technology 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 rise in relation to the value of the Usa dollar.
GMT
GMT stands for Greenwich Mean Time, the official time used in the United kingdom of great britain and northern ireland during winter. In summertime, the UK changes to British Summer Time, which is GMT + ane hr. 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 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 place.
In/Out trades
These are trades where the trader selects a low and loftier barrier, and predicts if the market will stay within these barriers or go outside them (see as well ‘Stays Between/Goes Outside trades’).
Market exit price
The market get out price is the price in upshot at the terminate of the contract period.
No Affect trades
These are trades where the trader selects a toll target, and predicts that the market will never touch the target before the expiry of the trade.
(I) Touch trades
These are trades where the trader selects a price target, and predicts that the market will touch the target before the death of the trade.
Payout
The payout is the amount paid to an options trader if their prediction is correct.
Pip
Pip stands for ‘pct in signal’ which is generally the fourth decimal identify (i.e. 0.0001).
Turn a profit
The profit is the difference between the purchase price (the stake) and the payout on a winning trade.
Synthetic Indices
The synthetic indices simulate various existent market situations and provide an ideal platform for getting used to trading and testing strategies under diverse marketplace weather condition. These indices depend on volatility and migrate, and assistance users to try out scenarios like – loftier volatility, depression volatility, bullish and bearish trends.
Resale price
The resale price indicates a contract’s current market cost. Resale prices are on a all-time-efforts basis and may not be available at all times later purchase. See ‘Sell option’ for more details on selling contracts before decease.
Return
The return is the coin realized when the contract expires (run across ‘Payout’).
Rise/Fall trades
These are trades where the trader predicts if a marketplace will rising or autumn at the end of a selected time menstruation.
Sell option
It is sometimes possible to sell an selection before the decease of a trade, but only if a fair toll tin be determined. If this choice is bachelor, you lot will see a ‘Sell’ button inside the popup window, after clicking on the ‘View’ push adjacent to your trade in the portfolio.
Spot toll
This is the current toll at which an underlying tin be bought or sold at a item time.
Stake
The stake is the amount that a trader must pay to enter into a merchandise.
Stays Between/Goes Exterior trades
A Stays Between trade pays out if the market stays betwixt (does non touch) BOTH the loftier barrier or the depression barrier at whatever time during the period chosen past a trader. A Goes Outside trade pays out if the market touches EITHER the high barrier or the depression bulwark at any fourth dimension during the menses 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 hereafter movement of an underlying marketplace.
Source: https://www.binary.com/en/get-started/binary-options.html