When To Buy Binary Options

What are binary options

A binary option is a type of choice with a stock-still payout in which yous predict the outcome from 2 possible results. If your prediction is right, you lot receive the agreed payout. If not, you lose your initial stake, and null more. It'southward called 'binary' because in that location can be 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 as well very flexible. It gives you the ability to trade:

All markets
Trade on underlying markets that include forex, stock indices, commodities, and more.

All market atmospheric condition
Predict market movement using upwardly/down, affect/no bear on, and in/out trade types.

All durations
Take a short-term or long-term view with trade durations from 10 seconds to 365 days.

All payouts
Earn payouts up to l,000 USD. Losses are limited to your initial stake and nada more than.

Why you should merchandise binary options with Binary.com

Enjoy an accolade-winning online trading platform with trading conditions that are ideal for new and experienced traders.

Honour-winning online trading platform

Simple and intuitive
Enjoy a trading platform that's easy to navigate and employ.
Instant access
Open an account and start trading in minutes.
Available 24/7
Trade when you want. Our Constructed Indices are available fifty-fifty on weekends.
Patented technology
Trade with the industry pioneer and holder of a patented pricing engineering science.
Security and privacy
Merchandise confidently, knowing that your personal information, transactions, and funds are e'er secure.

All conditions and durations

All markets and conditions
Trade currencies, stock indices, commodities and more in rising, falling, sideways, quiet, and volatile markets.
Short to long-term durations
Cull timeframes from ten seconds to 365 days.

Competitive and transparent pricing

Abrupt, benchmarked prices
Receive prices that are benchmarked against interbank rates.
Transparent risk and potential reward
Know how much y'all volition win or lose earlier you buy the contract.
Protect your profits
Sell your long-term contracts before decease to protect whatever profits you may take fabricated or to minimise your losses.
Ii-way pricing
Receive quotes for a merchandise and countertrade, so you ever go unbiased, transparent rates.

Platonic for new and experienced traders

Low minimum stakes
Deposit equally piffling as v USD to get-go trading.
Trade according to your preferred strategy
Trade based on "gut feel" or rely on technical and fundamental analysis.
Flexible
Choose from over ane 1000000 possible trade variations at any time, 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 piece of cake. 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.

Brand 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 merchandise. There are five trade parameters y'all demand to adjust in order to receive a toll for the contract:

Choose from four bachelor markets:

Forex
Major and minor 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 gilt, silvery, and oil
Constructed Indices
Our proprietary synthetic indices that simulate market place forces

Choose from 3 primary merchandise types:

Upwardly/Down
Predict if the market will rise or autumn from its current level, or if it will stop higher or lower than a cost target.
Touch on/No touch on
Predict if the market place will touch or not touch a price target.
In/Out
Predict if the market will stay between or go outside two toll targets.

Bated from the three primary trade types above, you too get Asians and Digits trade types exclusively with our Synthetic Indices.

Set the length of your merchandise from ten seconds to 365 days, whether yous take a short-term or long-term view of the markets.

Prepare barrier(s) to define your position and trigger the payout you lot'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 technology based on the parameters you've defined in Step 1. Our prices are benchmarked against the interbank options market, so you always become the most competitive prices. This means that you'll always receive fair and transparent pricing, any your position.

Step three: Make your trade

When you are satisfied with the toll that you receive, execute your merchandise immediately. With our unique platform, there's no risk of 'slippage' or gaping markets. And nearly importantly, there are no hidden fees. Yous tin besides sell back whatsoever long-term trades at any fourth dimension to profit from favourable market place conditions.

Types of trades

Binary.com offers the following trade types that volition aid you execute your market view or strategy:

Up/Downwardly

At that place are two types of Upwardly/Downwardly trades:

Rise/Fall
Predict that the market will rising or fall from its electric current level.
College/Lower
Predict that the market volition finish higher or lower than a price target.

Touch/No touch

Predict that the market will touch or not touch a target whatsoever time during the contract period.

In/Out

There are ii types of In/Out trades:

Ends Betwixt/Ends Outside
Predict that the market stops inside or outside 2 price targets at the end of the fourth dimension menses.
Stays Between/Goes Outside
Predict that the market stays inside or goes exterior 2 price targets whatsoever fourth dimension during the contract period.

Asians

Predict that the market volition end higher or lower than the average price.

Digits

Predict the terminal decimal digit of the spot price with Digits. There are 3 types of Digits trades:

Matches/Differs
Predict that the terminal digit will match or non lucifer.
Even/Odd
Predict that the last digit is an fifty-fifty number or odd number after the last tick.
Over/Under
Predict that the final digit is higher or lower.

Reset Telephone call/Reset Put

There are two types of reset trades:

Reset Call
Predict that the market will end up higher than either the current level or the level at a predetermined time (reset time).
Reset Put
Predict that the marketplace will terminate up lower than either the current level or the level at a predetermined time (reset fourth dimension).

At reset fourth dimension, if the spot is in the opposite direction of your prediction, the barrier is reset to that spot.

High Ticks/Low Ticks

Purchase High Tick/Low Tick contracts to predict the highest or everyman tick among the side by side five ticks.

Just Ups/Only Downs

Available trade types:

Only Ups
Win payout if consecutive ticks rise successively. Contract is lost when at to the lowest degree ane tick falls or is equal to whatsoever of the previous ticks.
Only Downs
Win payout if sequent ticks autumn successively. Contract is lost when at to the lowest degree one tick rises or is equal to whatsoever of the previous ticks.

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

Range of markets

Binary options allow you lot to trade on a broad 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 asset performs over a period of time. This limits your risk and makes it piece of cake for anyone to showtime trading.

Available markets

Forex

Major pairs, minor pairs, and Smart FX indices.

Stock Indices

Major worldwide stock indices sourced from the OTC market.

Bolt

All four precious metals, plus energy.

Synthetic Indices

Synthetic indices that mimic market volatility.

Forex

Trade popular major and minor currency pairs, plus Smart FX indices – weighted indices that mensurate the value of a currency against a basket of major currencies.

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

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

Stock Indices

Enjoy exciting opportunities to merchandise 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 note that due to their OTC nature, the prices of our stock indices may differ from their counterparts on centralised exchanges.

Bolt

We offer all four precious metals – gold, silverish, palladium, and platinum – as well as free energy in our list of commodities.

Constructed Indices

Binary.com's 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 contained 3rd political party.

Synthetic Indices requite yous exclusive access to various trade types, such as Up/Down, Touch/No Bear on, In/Out, Asians, Digits, Lookbacks, Reset Phone call/Reset Put, Phone call Spread/Put Spread, Simply Ups/Only Downs, and more.

Constructed Indices are further categorised into two classes:

Continuous Indices – Choose from the Volatility 10 (1s) Index, Volatility 25 (1s) Index, Volatility fifty (1s) Alphabetize, Volatility 75 (1s) Index, Volatility 100 (1s) Index, Volatility 10 Index, Volatility 25 Alphabetize, Volatility 50 Index, Volatility 75 Index, and Volatility 100 Index. These indices represent to imitation markets with constant volatilities of 10%, 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 Market indices get-go at 00:00 GMT each day, replicating bullish and bearish markets respectively.

Glossary

Bulwark(s)

The barrier of a binary option trade is the price target you set for the underlying. You tin choose trades that stay below or go higher up a cost 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

Commodities are resources that are grown or extracted from the basis, such as silvery, gold and oil. On Binary.com, they are priced in U.s.a. dollars.

Contract period

The contract menses is the timeframe of a trade. It is besides called the duration.

Derivative

A derivative is a fiscal instrument whose value is adamant past reference to an underlying market. Derivatives are normally traded in the inter-bank marketplace, and binaries are 1 of the simplest forms of derivatives.

Elapsing

The duration is the length of a purchased trade (see 'contract period').

Ends Between/Ends Outside trades

An Ends Between merchandise pays out if the market exit toll is strictly higher than the low price target AND strictly lower than the high cost 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 depression price target.

Entry spot price

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

Expiry cost

The expiry cost is the toll of the underlying when the contract expires.

Forex

In strange exchange markets, traders can enter contracts based on the change in price of one currency as information technology relates to another currency. For instance 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 US dollar.

GMT

GMT stands for Greenwich Mean Time, the official time used in the UK during winter. In summer, the UK changes to British Summer Time, which is GMT + one hour. All times on the Binary.com site use GMT all year round.

College/Lower trades

These are trades where the trader predicts if a marketplace will cease higher or lower than a specified price target.

Stock Indices

Stock market indices mensurate the value of a selection of companies in the stock marketplace.

In/Out trades

These are trades where the trader selects a low and high barrier, and predicts if the market volition stay inside these barriers or become exterior them (encounter also 'Stays Between/Goes Outside trades').

Market get out cost

The market get out price is the price in effect at the stop of the contract flow.

No Touch trades

These are trades where the trader selects a price target, and predicts that the market place volition never impact the target before the decease of the trade.

(I) Affect trades

These are trades where the trader selects a toll target, and predicts that the market will touch the target before the expiry of the merchandise.

Payout

The payout is the amount paid to an options trader if their prediction is correct.

Pip

Pip stands for 'percent in bespeak' which is mostly the fourth decimal place (i.e. 0.0001).

Profit

The profit is the difference betwixt the purchase cost (the stake) and the payout on a winning trade.

Synthetic Indices

The constructed indices simulate diverse real market situations and provide an ideal platform for getting used to trading and testing strategies nether various marketplace conditions. These indices depend on volatility and drift, and help users to try out scenarios like - high volatility, low volatility, bullish and surly trends.

Resale price

The resale price indicates a contract's current market price. Resale prices are on a best-efforts footing and may not be available at all times afterward purchase. See 'Sell option' for more details on selling contracts before death.

Return

The render is the money realized when the contract expires (see 'Payout').

Ascension/Fall trades

These are trades where the trader predicts if a market place will rise or autumn at the end of a selected time period.

Sell option

Information technology is sometimes possible to sell an option earlier the expiry of a merchandise, but merely if a fair price tin exist determined. If this selection is bachelor, you lot will run across a 'Sell' button inside the popup window, subsequently clicking on the 'View' push button adjacent to your trade in the portfolio.

Spot price

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

Stake

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

Stays Between/Goes Outside trades

A Stays Betwixt trade pays out if the market stays between (does non touch) BOTH the high barrier or the low barrier at any time during the period chosen past a trader. A Goes Outside merchandise pays out if the market place touches EITHER the high barrier or the low bulwark at whatever fourth dimension during the menstruum chosen past a trader.

Tick

A tick is the minimum upwards or downwards movement in the price of a market.

Underlying

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