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 non, yous lose your initial stake, and nil more. It’s called ‘binary’ considering at that place can be only two outcomes – win or lose.
Advantages of binary options trading
Aside from the simplicity of its ‘yep or no’ proposition, binary options trading is also very flexible. Information technology gives y’all the ability 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 market movement using upward/downwards, touch/no affect, and in/out merchandise types.
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All durations
Accept 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 express to your initial stake and zip more.
Why yous should merchandise binary options with Binary.com
Savor an award-winning online trading platform with trading conditions that are ideal for new and experienced traders.
Laurels-winning online trading platform
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Simple and intuitive
Relish a trading platform that’south easy to navigate and employ. -
Instant access
Open an account and start trading in minutes. -
Available 24/seven
Trade when y’all want. Our Synthetic Indices are available fifty-fifty on weekends. -
Patented engineering science
Merchandise with the industry pioneer and holder of a patented pricing applied science. -
Security and privacy
Trade confidently, knowing that your personal data, transactions, and funds are e’er secure.
All weather and durations
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All markets and conditions
Trade currencies, stock indices, commodities and more in rising, 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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Sharp, benchmarked prices
Receive prices that are benchmarked against interbank rates. -
Transparent risk and potential reward
Know how much you volition win or lose before you lot buy the contract. -
Protect your profits
Sell your long-term contracts before expiry to protect any profits you may have made or to minimise your losses. -
2-way pricing
Receive quotes for a trade and countertrade, so you always get unbiased, transparent rates.
Platonic for new and experienced traders
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Low minimum stakes
Deposit equally little every bit 5 USD to start trading. -
Trade according to your preferred strategy
Trade based on “gut experience” or rely on technical and fundamental analysis. -
Flexible
Choose from over i million possible merchandise variations at any 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 piece of cake. You can purchase a contract in just three steps:
one
Ascertain your position
Cull the market, merchandise type, duration, bulwark, and payout.
two
Get your price
Receive instant prices based on your position.
3
Make your merchandise
Buy the contract or re-define your position.
Step i: Define your position
The first step is to set the parameters of your merchandise. There are five trade parameters you need to adjust in order to receive a toll for the contract:
Choose from 4 available 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 place -
Commodities
Major commodities such as gold, silver, and oil -
Constructed Indices
Our proprietary synthetic indices that simulate market place forces
Choose from three master trade types:
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Upwardly/Down
Predict if the market will rise or autumn from its current level, or if information technology will end higher or lower than a price target. -
Bear upon/No impact
Predict if the market volition touch or not bear on a price target. -
In/Out
Predict if the market will stay betwixt or go outside 2 price targets.
Aside from the three chief merchandise types in a higher place, you besides get Asians and Digits merchandise types exclusively with our Synthetic Indices.
Ready the length of your trade from ten seconds to 365 days, whether you accept a curt-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 wish to receive from correctly predicting this contract.
Step 2: Get your price
The toll of the contract is automatically calculated by our patented pricing engineering science based on the parameters you’ve defined in Step 1. Our prices are benchmarked against the interbank options market, and then you always get the nigh competitive prices. This ways that you lot’ll e’er receive fair and transparent pricing, whatever your position.
Step 3: Make your trade
When you are satisfied with the toll that you receive, execute your trade immediately. With our unique platform, there’s no risk of ‘slippage’ or gaping markets. And almost chiefly, there are no hidden fees. You can also sell dorsum any long-term trades at any time to 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/Down
There are two types of Upwards/Down trades:
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Rise/Fall
Predict that the marketplace volition rise or fall from its current level. -
College/Lower
Predict that the market will end higher or lower than a price target.
Touch/No touch
Predict that the marketplace will bear on or non touch a target whatever fourth dimension during the contract period.
In/Out
There are two types of In/Out trades:
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Ends Between/Ends Exterior
Predict that the market stops within or outside two price targets at the end of the time period. -
Stays Between/Goes Outside
Predict that the market stays inside or goes outside two price targets whatever time during the contract period.
Asians
Predict that the marketplace will cease higher or lower than the average price.
Digits
Predict the terminal decimal digit of the spot price with Digits. In that location are 3 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 later the last tick. -
Over/Under
Predict that the last digit is higher or lower.
Reset Call/Reset Put
At that place are two types of reset trades:
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Reset Phone call
Predict that the market will finish up college than either the electric current level or the level at a predetermined time (reset time). -
Reset Put
Predict that the market volition end up lower than either the current level or the level at a predetermined fourth dimension (reset time).
At reset time, if the spot is in the opposite direction of your prediction, the bulwark is reset to that spot.
High Ticks/Low Ticks
Purchase High Tick/Depression Tick contracts to predict the highest or everyman tick amid the next five ticks.
Only Ups/Simply Downs
Bachelor trade types:
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Only 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. -
Only Downs
Win payout if consecutive ticks fall successively. Contract is lost when at least one tick rises or is equal to whatsoever of the previous ticks.
Delight annotation that Asians, Digits, Reset Call/Reset Put, High Ticks/Depression Ticks, and Only Ups/Only Downs are available exclusively with our Synthetic Indices.
Range of markets
Binary options permit you to trade on a wide range of underlying markets. One of the advantages of trading binary options is that you lot are not buying or selling an actual nugget, only a contract that determines how that nugget performs over a period of time. This limits your take a chance and makes information technology easy for anyone to showtime trading.
Available markets
Forex
Major pairs, pocket-size pairs, and Smart FX indices.
Stock Indices
Major worldwide stock indices sourced from the OTC market place.
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.
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 Index – 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 confronting a basket of five global currencies (USD, EUR, AUD, JPY, CAD), each weighted past twenty%
- USD Index – Measures the value of the US dollar confronting a basket of five global currencies (EUR, GBP, JPY, CAD, AUD), each weighted by xx%
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 outside of the centralised exchanges. Please notation that due to their OTC nature, the prices of our stock indices may differ from their counterparts on centralised exchanges.
Commodities
Nosotros offering all iv precious metals – aureate, silver, palladium, and platinum – as well every bit free energy in our list of commodities.
Constructed Indices
Binary.com’due south Synthetic Indices are synthetic indices that mimic real-earth 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 requite you exclusive admission to various trade types, such as Upwards/Down, Touch on/No Touch, In/Out, Asians, Digits, Lookbacks, Reset Phone call/Reset Put, Call Spread/Put Spread, Simply Ups/Only Downs, and more.
Constructed Indices are further categorised into ii classes:
- Continuous Indices – Choose from the Volatility x (1s) Alphabetize, Volatility 25 (1s) Index, Volatility 50 (1s) Alphabetize, Volatility 75 (1s) Alphabetize, Volatility 100 (1s) Index, Volatility ten Alphabetize, Volatility 25 Index, Volatility 50 Index, Volatility 75 Index, and Volatility 100 Index. These indices correspond to false 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 Bull Market and Bear Marketplace indices outset at 00:00 GMT each day, replicating bullish and bearish markets respectively.
Glossary
Bulwark(south)
The barrier of a binary pick trade is the cost target you prepare for the underlying. You can choose trades that stay below or go to a higher place a toll target, or stay between two targets.
Binary option
A binary choice 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 equally silver, gilt and oil. On Binary.com, they are priced in The states dollars.
Contract period
The contract period is the timeframe of a trade. It is also called the duration.
Derivative
A derivative is a fiscal musical instrument whose value is determined by reference to an underlying marketplace. Derivatives are unremarkably 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 (see ‘contract period’).
Ends Betwixt/Ends Exterior trades
An Ends Between merchandise pays out if the market place get out cost is strictly higher than the low price target AND strictly lower than the high price target. An Ends Outside binary pays out if the market exit price is EITHER strictly college than the high toll target OR strictly lower than the depression toll target.
Entry spot price
The entry spot price is the starting price of the trade purchased by a trader.
Death price
The expiry price is the cost of the underlying when the contract expires.
Forex
In strange commutation markets, traders can enter contracts based on the modify in price of 1 currency as it relates to another currency. For example if a trader selects Rise in the EUR/USD market place, they are predicting that the value of the Euro volition rising 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 Uk changes to British Summer Time, which is GMT + i 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 volition stop 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 bulwark, and predicts if the marketplace will stay inside these barriers or go outside them (encounter besides ‘Stays Between/Goes Outside trades’).
Market exit cost
The market go out toll is the price in effect at the cease 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.
(I) Bear upon trades
These are trades where the trader selects a price target, and predicts that the market will touch 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 ‘percentage in indicate’ which is generally the fourth decimal place (i.eastward. 0.0001).
Profit
The profit is the difference betwixt the purchase cost (the stake) and the payout on a winning trade.
Synthetic Indices
The synthetic 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 effort out scenarios like – high volatility, low volatility, bullish and surly trends.
Resale price
The resale cost indicates a contract’s electric current marketplace toll. Resale prices are on a best-efforts basis and may not be available at all times later buy. See ‘Sell pick’ for more details on selling contracts before death.
Render
The return is the money realized when the contract expires (see ‘Payout’).
Rise/Fall trades
These are trades where the trader predicts if a market will ascension or fall at the end of a selected time period.
Sell selection
It is sometimes possible to sell an option before the expiry of a trade, simply but if a fair cost can be adamant. If this option is available, you volition see a ‘Sell’ button inside the popup window, after clicking on the ‘View’ push button next to your trade in the portfolio.
Spot price
This is the current price at which an underlying 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 Between/Goes Outside trades
A Stays Between trade pays out if the market stays between (does not touch on) BOTH the high barrier or the low bulwark at whatever time during the period called by a trader. A Goes Outside trade pays out if the market place touches EITHER the high barrier or the low barrier at whatsoever fourth dimension during the menses chosen past a trader.
Tick
A tick is the minimum upward or down movement in the cost of a market.
Underlying
Each binary option is a prediction on the futurity move of an underlying market.
Source: https://www.binary.com/en/get-started/binary-options.html