What are binary options
A binary selection is a type of option with a fixed payout in which y’all predict the issue from two possible results. If your prediction is correct, you receive the agreed payout. If not, you lose your initial stake, and nothing more. It’southward called ‘binary’ because there can be but ii outcomes – win or lose.
Advantages of binary options trading
Aside from the simplicity of its ‘aye or no’ proposition, binary options trading is also very flexible. Information technology gives you the power to trade:
Trade on underlying markets that include forex, stock indices, commodities, and more.
All marketplace weather
Predict marketplace movement using up/down, touch/no touch on, and in/out trade types.
Have a curt-term or long-term view with trade durations from 10 seconds to 365 days.
Earn payouts up to 50,000 USD. Losses are limited to your initial stake and null more.
Why you should trade binary options with Binary.com
Savour an award-winning online trading platform with trading conditions that are ideal for new and experienced traders.
Award-winning online trading platform
Unproblematic and intuitive
Enjoy a trading platform that’s like shooting fish in a barrel to navigate and use.
Open an account and start trading in minutes.
Trade when y’all desire. Our Synthetic Indices are available even on weekends.
Merchandise with the industry pioneer and holder of a patented pricing engineering science.
Security and privacy
Merchandise confidently, knowing that your personal data, transactions, and funds are always secure.
All conditions and durations
All markets and weather
Trade currencies, stock indices, commodities and more in rising, falling, sideways, repose, and volatile markets.
Brusque to long-term durations
Choose timeframes from 10 seconds to 365 days.
Competitive and transparent pricing
Precipitous, benchmarked prices
Receive prices that are benchmarked against interbank rates.
Transparent risk and potential reward
Know how much you volition win or lose earlier you purchase the contract.
Protect your profits
Sell your long-term contracts before decease 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
Deposit as fiddling equally 5 USD to outset trading.
Trade according to your preferred strategy
Merchandise based on “gut feel” or rely on technical and fundamental assay.
Choose from over one million possible trade variations at any time, and customise your trades according to your preferred strategy.
Earn the same proportional return on stakes of all values.
How to trade binary options
Binary options trading is relatively easy. You can purchase a contract in just three steps:
Define your position
Choose the market, trade type, duration, barrier, and payout.
Get your toll
Receive instant prices based on your position.
Make your merchandise
Buy the contract or re-define your position.
Step 1: Define your position
The first step is to fix the parameters of your trade. There are five trade parameters you need to adjust in guild to receive a cost for the contract:
Choose from four available markets:
Major and minor pairs, plus Smart FX indices
All major worldwide stock indices sourced from the over-the-counter market place
Major bolt such as gilded, silver, and oil
Our proprietary constructed indices that simulate market forces
Choose from three principal trade types:
Predict if the market will ascension or fall from its current level, or if it will terminate higher or lower than a cost target.
Predict if the market volition touch on or not touch on a price target.
Predict if the market place will stay betwixt or go outside two price targets.
Aside from the three principal trade types above, yous also get Asians and Digits merchandise types exclusively with our Synthetic Indices.
Ready the length of your trade from 10 seconds to 365 days, whether you have a brusk-term or long-term view of the markets.
Ready bulwark(south) to define your position and trigger the payout yous’ll receive.
Choose the payout you wish to receive from correctly predicting this contract.
Step 2: Become your price
The price of the contract is automatically calculated by our patented pricing applied science based on the parameters you’ve defined in Step 1. Our prices are benchmarked against the interbank options market, then you e’er get the most competitive prices. This ways that you’ll always receive fair and transparent pricing, whatever your position.
Step 3: Make your trade
When y’all are satisfied with the price that you receive, execute your merchandise immediately. With our unique platform, there’s no hazard of ‘slippage’ or gaping markets. And most importantly, there are no hidden fees. You tin also sell back any long-term trades at any time to turn a profit from favourable market place conditions.
Types of trades
Binary.com offers the following trade types that will assistance you execute your market place view or strategy:
In that location are 2 types of Up/Down trades:
Predict that the market place will rise or autumn from its current level.
Predict that the market volition end college or lower than a price target.
Predict that the market will touch or not bear on a target whatever time during the contract period.
At that place are ii types of In/Out trades:
Ends Between/Ends Outside
Predict that the market stops within or outside two price targets at the stop of the time menstruum.
Stays Betwixt/Goes Outside
Predict that the market stays inside or goes outside two cost targets any time during the contract menses.
Predict that the market will end higher or lower than the average cost.
Predict the terminal decimal digit of the spot price with Digits. There are iii types of Digits trades:
Predict that the terminal digit will match or not match.
Predict that the last digit is an even number or odd number later the last tick.
Predict that the last digit is college or lower.
Reset Call/Reset Put
There are two types of reset trades:
Predict that the marketplace will end up higher than either the electric current level or the level at a predetermined time (reset time).
Predict that the market place will finish 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 direction of your prediction, the barrier is reset to that spot.
High Ticks/Depression Ticks
Buy Loftier Tick/Depression Tick contracts to predict the highest or lowest tick among the next five ticks.
Only Ups/Just Downs
Available trade types:
Win payout if consecutive ticks rise successively. Contract is lost when at least one tick falls or is equal to any of the previous ticks.
Win payout if consecutive ticks fall successively. Contract is lost when at to the lowest degree one tick rises or is equal to whatever of the previous ticks.
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 broad range of underlying markets. Ane of the advantages of trading binary options is that yous are not buying or selling an bodily nugget, only a contract that determines how that asset performs over a period of time. This limits your risk and makes information technology easy for anyone to start trading.
Major pairs, modest pairs, and Smart FX indices.
Major worldwide stock indices sourced from the OTC market.
All four precious metals, plus free energy.
Synthetic indices that mimic market volatility.
Merchandise pop major and pocket-size currency pairs, plus Smart FX indices – weighted indices that mensurate the value of a currency confronting 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 confronting a basket of five global currencies (USD, EUR, GBP, JPY, CAD), each weighted past 20%
- EUR Alphabetize – Measures the value of the Euro against a basket of five global currencies (USD, AUD, GBP, JPY, CAD), each weighted by 20%
- GBP Index – Measures the value of the British Pound against a basket of v global currencies (USD, EUR, AUD, JPY, CAD), each weighted by 20%
- USD Index – Measures the value of the Usa dollar confronting a basket of five global currencies (EUR, GBP, JPY, CAD, AUD), each weighted past xx%
Bask heady opportunities to merchandise stock indices with the benefit of existent-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.
Nosotros offer all four precious metals – gilt, argent, palladium, and platinum – too equally energy in our listing of commodities.
Binary.com’s Synthetic Indices are synthetic indices that mimic real-world 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 party.
Synthetic Indices give you exclusive access to various merchandise types, such as Up/Down, Impact/No Touch, In/Out, Asians, Digits, Lookbacks, Reset Phone call/Reset Put, Call Spread/Put Spread, But Ups/Only Downs, and more.
Constructed Indices are farther categorised into 2 classes:
- Continuous Indices – Choose from the Volatility 10 (1s) Index, Volatility 25 (1s) Index, Volatility 50 (1s) Index, Volatility 75 (1s) Alphabetize, Volatility 100 (1s) Index, Volatility 10 Index, Volatility 25 Index, Volatility 50 Index, Volatility 75 Alphabetize, and Volatility 100 Index. These indices correspond to fake markets with constant volatilities of x%, 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 Balderdash Market and Acquit Market place indices start at 00:00 GMT each day, replicating bullish and bearish markets respectively.
The bulwark of a binary option merchandise is the price target y’all set for the underlying. You tin choose trades that stay below or go above a cost target, or stay between two targets.
A binary option is a contract purchased by a trader, which pays a pre-determined amount if their prediction is right.
Bolt are resources that are grown or extracted from the ground, such equally silver, gold and oil. On Binary.com, they are priced in US dollars.
The contract period is the timeframe of a trade. It is also chosen the duration.
A derivative is a fiscal instrument whose value is adamant by reference to an underlying market. Derivatives are usually traded in the inter-bank market place, and binaries are one of the simplest forms of derivatives.
The duration is the length of a purchased merchandise (run across ‘contract period’).
Ends Between/Ends Exterior trades
An Ends Between merchandise pays out if the market get out toll is strictly higher than the low toll target AND strictly lower than the high price target. An Ends Outside binary pays out if the market exit toll is EITHER strictly college than the high price target OR strictly lower than the low price target.
Entry spot price
The entry spot toll is the starting price of the merchandise purchased by a trader.
The expiry cost is the price of the underlying when the contract expires.
In strange substitution markets, traders can enter contracts based on the modify in price of ane 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 rise in relation to the value of the U.s.a. dollar.
GMT stands for Greenwich Mean Time, the official fourth dimension used in the U.k. during wintertime. In summertime, the UK changes to British Summer Time, which is GMT + 1 hour. All times on the Binary.com site utilise GMT all year round.
These are trades where the trader predicts if a market will finish higher or lower than a specified cost target.
Stock market place indices measure out the value of a selection of companies in the stock marketplace.
These are trades where the trader selects a low and high bulwark, and predicts if the market will stay within these barriers or go exterior them (see besides ‘Stays Between/Goes Outside trades’).
Market exit cost
The marketplace go out price is the price in effect at the terminate of the contract period.
No Touch trades
These are trades where the trader selects a price target, and predicts that the market place will never touch the target earlier the expiry of the trade.
(One) Touch trades
These are trades where the trader selects a price target, and predicts that the market will affect the target before the expiry of the merchandise.
The payout is the amount paid to an options trader if their prediction is correct.
Pip stands for ‘percentage in signal’ which is by and large the fourth decimal place (i.due east. 0.0001).
The profit is the difference between the purchase price (the pale) and the payout on a winning trade.
The constructed indices simulate various 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 help users to try out scenarios like – high volatility, low volatility, bullish and bearish trends.
The resale price indicates a contract’s current market price. Resale prices are on a best-efforts ground and may non be available at all times later on purchase. See ‘Sell option’ for more than details on selling contracts before expiry.
The return is the money realized when the contract expires (come across ‘Payout’).
These are trades where the trader predicts if a market volition ascent or fall at the stop of a selected time catamenia.
Information technology is sometimes possible to sell an option before the expiry of a trade, but only if a fair cost tin can be determined. If this option is bachelor, you will meet a ‘Sell’ push button inside the popup window, afterward clicking on the ‘View’ button next to your trade in the portfolio.
This is the current price at which an underlying tin be bought or sold at a item 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 not 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 market touches EITHER the high barrier or the low barrier at any time during the period chosen by a trader.
A tick is the minimum upward or downwardly movement in the price of a market.
Each binary option is a prediction on the hereafter motility of an underlying market place.