What are binary options
A binary option is a type of selection with a fixed payout in which you predict the outcome from two possible results. If your prediction is correct, you receive the agreed payout. If not, yous lose your initial pale, and cypher more. It’s called ‘binary’ because there can be only two outcomes – win or lose.
Advantages of binary options trading
Aside from the simplicity of its ‘yes or no’ proffer, binary options trading is also very flexible. It gives you the ability 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 marketplace movement using up/down, touch on/no touch, and in/out merchandise types.
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All durations
Take a curt-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 express to your initial pale and null more.
Why y’all should trade binary options with Binary.com
Bask 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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Elementary and intuitive
Enjoy a trading platform that’due south easy to navigate and apply. -
Instant access
Open an account and start trading in minutes. -
Bachelor 24/vii
Merchandise when you lot desire. Our Synthetic Indices are available even on weekends. -
Patented technology
Merchandise with the manufacture pioneer and holder of a patented pricing engineering. -
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 atmospheric condition
Merchandise currencies, stock indices, bolt and more than in rising, falling, sideways, repose, and volatile markets. -
Short to long-term durations
Choose timeframes from x seconds to 365 days.
Competitive and transparent pricing
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Sharp, benchmarked prices
Receive prices that are benchmarked against interbank rates. -
Transparent risk and potential reward
Know how much you will win or lose before yous purchase the contract. -
Protect your profits
Sell your long-term contracts earlier expiry to protect any profits you may have made or to minimise your losses. -
Ii-mode 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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Low minimum stakes
Deposit as niggling as v USD to get-go trading. -
Trade according to your preferred strategy
Trade based on “gut feel” or rely on technical and cardinal analysis. -
Flexible
Choose from over one one thousand thousand possible trade variations at any fourth dimension, and customise your trades according 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 easy. You lot tin can purchase a contract in just three steps:
1
Ascertain your position
Choose the market, trade type, elapsing, barrier, and payout.
2
Go your price
Receive instant prices based on your position.
3
Make your trade
Buy the contract or re-define your position.
Pace 1: Ascertain your position
The first step is to set the parameters of your merchandise. There are 5 trade parameters you lot demand to suit in order to receive a cost for the contract:
Choose from iv available markets:
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Forex
Major and small-scale 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 -
Synthetic Indices
Our proprietary synthetic indices that simulate market forces
Choose from iii main trade types:
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Up/Down
Predict if the market place will rise or autumn from its electric current level, or if it will stop higher or lower than a price target. -
Impact/No touch
Predict if the market will bear upon or non affect a price target. -
In/Out
Predict if the market volition stay between or go outside 2 cost targets.
Aside from the iii main trade types above, you as well get Asians and Digits merchandise types exclusively with our Constructed Indices.
Set the length of your merchandise from 10 seconds to 365 days, whether y’all take a short-term or long-term view of the markets.
Set barrier(s) to ascertain your position and trigger the payout y’all’ll receive.
Choose the payout you wish to receive from correctly predicting this contract.
Step 2: Get your price
The price of the contract is automatically calculated by our patented pricing technology based on the parameters you’ve divers in Step 1. Our prices are benchmarked confronting the interbank options market, so 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 merchandise
When you are satisfied with the price that you lot receive, execute your trade immediately. With our unique platform, in that location’due south no risk of ‘slippage’ or gaping markets. And almost importantly, there are no subconscious fees. You can also sell dorsum any long-term trades at whatever time to turn a profit from favourable marketplace conditions.
Types of trades
Binary.com offers the following trade types that will help you execute your market view or strategy:
Up/Down
At that place are two types of Up/Downwardly trades:
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Rise/Fall
Predict that the market volition rising or fall from its current level. -
Higher/Lower
Predict that the market volition end college or lower than a cost target.
Touch/No touch
Predict that the market volition touch or not touch a target any time during the contract period.
In/Out
There are two types of In/Out trades:
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Ends Between/Ends Outside
Predict that the market stops inside or outside two price targets at the terminate of the time period. -
Stays Between/Goes Outside
Predict that the market place stays inside or goes exterior two toll targets any time during the contract period.
Asians
Predict that the market will cease higher or lower than the boilerplate price.
Digits
Predict the last decimal digit of the spot cost with Digits. In that location are 3 types of Digits trades:
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Matches/Differs
Predict that the last digit volition friction match or not match. -
Even/Odd
Predict that the final digit is an even number or odd number after the last tick. -
Over/Under
Predict that the last digit is higher or lower.
Reset Phone call/Reset Put
There are two types of reset trades:
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Reset Call
Predict that the marketplace will end up college than either the electric current level or the level at a predetermined time (reset time). -
Reset Put
Predict that the marketplace 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/Low Ticks
Buy High Tick/Low Tick contracts to predict the highest or everyman tick among the next five ticks.
Only Ups/Only Downs
Available trade types:
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Merely Ups
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. -
Simply Downs
Win payout if consecutive ticks fall successively. Contract is lost when at least one tick rises or is equal to whatever of the previous ticks.
Please notation that Asians, Digits, Reset Call/Reset Put, High Ticks/Low Ticks, and Just Ups/Only Downs are available exclusively with our Constructed Indices.
Range of markets
Binary options allow you to trade on a wide range of underlying markets. I of the advantages of trading binary options is that you are non buying or selling an actual asset, but a contract that determines how that asset performs over a period of fourth dimension. This limits your risk and makes it easy for anyone to offset trading.
Available markets
Stock Indices
Major worldwide stock indices sourced from the OTC marketplace.
Commodities
All four precious metals, plus energy.
Synthetic Indices
Constructed indices that mimic marketplace 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.
At that place are four types of Smart FX indices that you can trade:
- AUD Alphabetize – Measures the value of the Australian dollar confronting a basket of five global currencies (USD, EUR, GBP, JPY, CAD), each weighted by 20%
- EUR Alphabetize – Measures the value of the Euro confronting a basket of 5 global currencies (USD, AUD, GBP, JPY, CAD), each weighted by 20%
- GBP Index – Measures the value of the British Pound against a handbasket of five global currencies (USD, EUR, AUD, JPY, CAD), each weighted past twenty%
- USD Index – Measures the value of the U.s. dollar against a basket of five global currencies (EUR, GBP, JPY, CAD, AUD), each weighted by 20%
Stock Indices
Enjoy exciting 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 annotation 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 – gilt, silver, palladium, and platinum – every bit well as free energy in our listing of commodities.
Synthetic Indices
Binary.com’s Synthetic Indices are synthetic indices that mimic existent-world market volatility and are available for trading 24/seven. They are based on a cryptographically secure random number generator audited for fairness by an independent third party.
Synthetic Indices give you lot exclusive admission to various trade types, such equally Up/Down, Touch/No Bear upon, In/Out, Asians, Digits, Lookbacks, Reset Call/Reset Put, Call Spread/Put Spread, Only Ups/Simply Downs, and more.
Synthetic Indices are further categorised into ii classes:
- Continuous Indices – Choose from the Volatility 10 (1s) Index, Volatility 25 (1s) Alphabetize, Volatility 50 (1s) Index, Volatility 75 (1s) Alphabetize, Volatility 100 (1s) Index, Volatility ten Index, Volatility 25 Index, Volatility fifty Index, Volatility 75 Index, and Volatility 100 Index. These indices correspond to simulated markets with constant volatilities of 10%, 25%, 50%, 75%, and 100% respectively.
- Daily Reset Indices – Daily Reset Indices replicate markets with a bullish and surly trend with a abiding volatility. The Bull Marketplace and Bear Market indices start at 00:00 GMT each solar day, replicating bullish and bearish markets respectively.
Glossary
Bulwark(s)
The bulwark of a binary option trade is the cost target you set for the underlying. You lot can choose trades that stay below or go above a price target, or stay between two targets.
Binary option
A binary option is a contract purchased by a trader, which pays a pre-determined amount if their prediction is correct.
Commodities
Bolt are resources that are grown or extracted from the ground, such equally argent, gilded and oil. On Binary.com, they are priced in U.s. dollars.
Contract period
The contract period is the timeframe of a trade. It is likewise chosen the duration.
Derivative
A derivative is a financial instrument whose value is determined past reference to an underlying market. Derivatives are commonly 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 (meet ‘contract period’).
Ends Between/Ends Outside trades
An Ends Between trade pays out if the market go out price 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 price is EITHER strictly higher than the high price target OR strictly lower than the low price target.
Entry spot price
The entry spot price is the starting price of the trade purchased past a trader.
Expiry toll
The expiry toll is the cost of the underlying when the contract expires.
Forex
In foreign exchange markets, traders can enter contracts based on the change in toll of ane currency as information technology relates to another currency. For example if a trader selects Ascent in the EUR/USD marketplace, they are predicting that the value of the Euro will rise in relation to the value of the United states of america dollar.
GMT
GMT stands for Greenwich Mean Fourth dimension, the official fourth dimension used in the UK during wintertime. In summer, the UK changes to British Summer Time, which is GMT + 1 hour. All times on the Binary.com site use GMT all year round.
Higher/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 high barrier, and predicts if the market will stay inside these barriers or go outside them (see also ‘Stays Betwixt/Goes Outside trades’).
Market exit toll
The market exit price is the cost in event at the end of the contract period.
No Bear on 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 price target, and predicts that the market 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 correct.
Pip
Pip stands for ‘per centum in signal’ which is generally the fourth decimal place (i.e. 0.0001).
Profit
The profit is the difference between the purchase cost (the pale) and the payout on a winning merchandise.
Synthetic Indices
The synthetic indices simulate various existent market situations and provide an platonic platform for getting used to trading and testing strategies nether diverse market conditions. These indices depend on volatility and drift, and assist users to try out scenarios like – loftier volatility, depression volatility, bullish and bearish trends.
Resale price
The resale price indicates a contract’due south current market price. Resale prices are on a best-efforts basis and may not be available at all times after purchase. See ‘Sell option’ for more details on selling contracts before decease.
Return
The return is the money realized when the contract expires (run into ‘Payout’).
Rise/Fall trades
These are trades where the trader predicts if a marketplace will rise or fall at the end of a selected time flow.
Sell option
It is sometimes possible to sell an option earlier the expiry of a trade, just simply if a off-white price can be determined. If this option is available, y’all volition run across a ‘Sell’ push inside the popup window, later on clicking on the ‘View’ push button next to your trade in the portfolio.
Spot toll
This is the current price at which an underlying tin can be bought or sold at a particular time.
Pale
The pale is the amount that a trader must pay to enter into a trade.
Stays Betwixt/Goes Exterior trades
A Stays Between trade pays out if the market stays between (does not touch) BOTH the high bulwark or the depression barrier at any time during the menses chosen by a trader. A Goes Exterior trade pays out if the market touches EITHER the high bulwark or the low barrier at whatsoever fourth dimension during the period chosen by a trader.
Tick
A tick is the minimum upward or downwardly movement in the price of a market.
Underlying
Each binary selection is a prediction on the future movement of an underlying market.
Source: https://www.binary.com/en/get-started/binary-options.html