What Do Lots Mean Binary Options

What are binary options

A binary option is a type of option with a fixed payout in which yous predict the outcome from two possible results. If your prediction is correct, you receive the agreed payout. If not, you lose your initial pale, and nothing more. It’due south called ‘binary’ because there can exist simply two outcomes – win or lose.

Advantages of binary options trading

Aside from the simplicity of its ‘yes or no’ suggestion, binary options trading is also very flexible. It gives y’all the power to trade:

Why you should trade binary options with Binary.com

Savor an award-winning online trading platform with trading conditions that are platonic for new and experienced traders.

Award-winning online trading platform

• Simple and intuitive
  
  Enjoy a trading platform that’s easy to navigate and use.
• Instant access
  
  Open an account and start trading in minutes.
• Bachelor 24/7
  
  Trade when you want. Our Constructed Indices are available even on weekends.
• Patented technology
  
  Trade with the industry pioneer and holder of a patented pricing technology.
• Security and privacy
  
  Merchandise confidently, knowing that your personal information, transactions, and funds are ever secure.

All weather condition and durations

• All markets and conditions
  
  Merchandise currencies, stock indices, bolt and more than in rising, falling, sideways, serenity, and volatile markets.
• Brusque to long-term durations
  
  Choose timeframes from 10 seconds to 365 days.

Competitive and transparent pricing

• Abrupt, benchmarked prices
  
  Receive prices that are benchmarked confronting interbank rates.
• Transparent gamble 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 before expiry to protect any profits you may accept made or to minimise your losses.
• Ii-way pricing
  
  Receive quotes for a trade and countertrade, so you e’er get unbiased, transparent rates.

Platonic for new and experienced traders

• Low minimum stakes
  
  Deposit as little as 5 USD to start trading.
• Trade according to your preferred strategy
  
  Merchandise based on “gut feel” or rely on technical and fundamental analysis.
• Flexible
  
  Choose from over i 1000000 possible trade variations at any fourth dimension, 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 piece of cake. You can buy a contract in just three steps:

Step 1: Ascertain your position

The beginning step is to set the parameters of your trade. At that place are five trade parameters you demand to conform in order to receive a price for the contract:

Choose from iv available markets:

• Forex
  
  Major and pocket-size pairs, plus Smart FX indices
• Stock Indices
  
  All major worldwide stock indices sourced from the over-the-counter marketplace
• Commodities
  
  Major commodities such as gold, argent, and oil
• Synthetic Indices
  
  Our proprietary constructed indices that simulate market forces

Cull from 3 principal trade types:

• Up/Downward
  
  Predict if the market will ascent or fall from its current level, or if it will stop higher or lower than a price target.
• Affect/No touch
  
  Predict if the market will touch or non affect a price target.
• In/Out
  
  Predict if the market will stay between or go outside two price targets.

Aside from the 3 main trade types in a higher place, you besides go Asians and Digits trade types exclusively with our Synthetic Indices.

Set the length of your merchandise from x seconds to 365 days, whether you lot have a short-term or long-term view of the markets.

Set barrier(southward) to define your position and trigger the payout you’ll receive.

Choose the payout y’all wish to receive from correctly predicting this contract.

Stride 2: Become your price

The price of the contract is automatically calculated by our patented pricing applied science based on the parameters yous’ve defined in Pace one. Our prices are benchmarked against the interbank options market, so you always get the most competitive prices. This ways that you’ll always receive fair and transparent pricing, whatever your position.

Pace iii: Make your trade

When you are satisfied with the price that you receive, execute your merchandise immediately. With our unique platform, in that location’south no gamble of ‘slippage’ or gaping markets. And near importantly, there are no hidden fees. You can also 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 will assist you lot execute your market place view or strategy:

Please note that Asians, Digits, Reset Call/Reset Put, High Ticks/Low Ticks, and Only Ups/Only Downs are available exclusively with our Synthetic Indices.

Range of markets

Binary options allow you 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 actual asset, only a contract that determines how that asset performs over a period of fourth dimension. This limits your risk and makes it like shooting fish in a barrel for anyone to beginning trading.

Available markets

Forex

Merchandise popular major and pocket-sized currency pairs, plus Smart FX indices – weighted indices that mensurate the value of a currency confronting a basket of major currencies.

There are four types of Smart FX indices that you can merchandise:

• AUD Alphabetize – Measures the value of the Australian dollar against a basket of 5 global currencies (USD, EUR, GBP, JPY, CAD), each weighted past 20%
• EUR Index – Measures the value of the Euro against a basket of 5 global currencies (USD, AUD, GBP, JPY, CAD), each weighted by 20%
• GBP Alphabetize – Measures the value of the British Pound against a basket of five global currencies (USD, EUR, AUD, JPY, CAD), each weighted by 20%
• USD Index – Measures the value of the United states dollar against a handbasket of v global currencies (EUR, GBP, JPY, CAD, AUD), each weighted by 20%

Stock Indices

Enjoy 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 – sources outside of the centralised exchanges. Delight 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 4 precious metals – gold, argent, palladium, and platinum – also as energy in our listing of commodities.

Constructed Indices

Binary.com’s Constructed Indices are constructed indices that mimic real-globe market 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 political party.

Synthetic Indices give y’all sectional access to various trade types, such equally Upwards/Down, Touch/No Affect, In/Out, Asians, Digits, Lookbacks, Reset Phone call/Reset Put, Call Spread/Put Spread, Merely Ups/Just Downs, and more.

Synthetic Indices are further categorised into two classes:

• Continuous Indices – Choose from the Volatility 10 (1s) Index, Volatility 25 (1s) Index, Volatility 50 (1s) Index, Volatility 75 (1s) Index, Volatility 100 (1s) Index, Volatility ten Index, Volatility 25 Alphabetize, Volatility 50 Alphabetize, Volatility 75 Alphabetize, and Volatility 100 Index. These indices correspond to simulated markets with constant volatilities of 10%, 25%, l%, 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 Carry Marketplace indices starting time at 00:00 GMT each twenty-four hours, replicating bullish and bearish markets respectively.

Glossary

Barrier(s)

The bulwark of a binary selection trade is the price target you set for the underlying. You tin can choose trades that stay below or become to a higher place a price target, or stay between ii targets.

Binary option

A binary option is a contract purchased by a trader, which pays a pre-determined corporeality if their prediction is correct.

Bolt

Commodities are resources that are grown or extracted from the ground, such as silver, gilt and oil. On Binary.com, they are priced in U.s. dollars.

Contract period

The contract catamenia is the timeframe of a trade. It is also chosen the duration.

Derivative

A derivative is a financial musical instrument whose value is adamant by reference to an underlying market. Derivatives are usually traded in the inter-bank market, and binaries are one of the simplest forms of derivatives.

Duration

The duration is the length of a purchased trade (run across ‘contract menstruation’).

Ends Between/Ends Outside trades

An Ends Between trade pays out if the marketplace exit price is strictly college than the low toll target AND strictly lower than the high price target. An Ends Outside binary pays out if the market get out price is EITHER strictly higher than the loftier price target OR strictly lower than the low price target.

Entry spot toll

The entry spot price is the starting price of the merchandise purchased by a trader.

Expiry price

The death price is the price of the underlying when the contract expires.

Forex

In strange substitution markets, traders can enter contracts based on the change in cost of 1 currency as it relates to another currency. For example if a trader selects Rising in the EUR/USD market, they are predicting that the value of the Euro will ascent in relation to the value of the United states 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 Summertime Time, which is GMT + 1 60 minutes. 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 volition stop college or lower than a specified price target.

Stock Indices

Stock market indices mensurate the value of a selection 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 become outside them (come across also ‘Stays Between/Goes Outside trades’).

Market exit price

The marketplace exit price is the price in effect at the end of the contract menses.

No Touch trades

These are trades where the trader selects a price target, and predicts that the market will never touch the target earlier the decease of the trade.

(One) Touch trades

These are trades where the trader selects a price target, and predicts that the market place volition bear upon 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 ‘percent in betoken’ which is generally the fourth decimal place (i.e. 0.0001).

Profit

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

Synthetic Indices

The constructed indices simulate various real market situations and provide an ideal platform for getting used to trading and testing strategies under various market weather condition. These indices depend on volatility and drift, and assist users to endeavor out scenarios similar – high volatility, depression volatility, bullish and bearish trends.

Resale price

The resale cost indicates a contract’s electric current marketplace toll. Resale prices are on a all-time-efforts basis and may not be bachelor at all times later on purchase. See ‘Sell option’ for more details on selling contracts before expiry.

Render

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

Rise/Fall trades

These are trades where the trader predicts if a marketplace will ascent or fall at the cease of a selected fourth dimension period.

Sell choice

Information technology is sometimes possible to sell an option earlier the death of a merchandise, but only if a off-white price tin can be determined. If this option is bachelor, you will come across a ‘Sell’ button within the popup window, afterwards clicking on the ‘View’ button next to your trade in the portfolio.

Spot toll

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

Pale

The stake is the amount that a trader must pay to enter into a merchandise.

Stays Betwixt/Goes Exterior trades

A Stays Between trade pays out if the market stays betwixt (does not touch) BOTH the high barrier or the low barrier at any time during the period called past a trader. A Goes Outside trade pays out if the market touches EITHER the high bulwark or the low barrier at whatsoever time during the period chosen by a trader.

Tick

A tick is the minimum upward or downward move in the price of a market.

Underlying

Each binary option is a prediction on the future move of an underlying market.