what is binary options trading platform
What are binary options
A binary choice is a type of option with a fixed payout in which you predict the issue from two possible results. If your prediction is right, you receive the agreed payout. If not, you lose your initial stake, and zip more. It'southward chosen 'binary' because there can be merely ii outcomes – win or lose.
Advantages of binary options trading
Aside from the simplicity of its 'yes or no' proffer, binary options trading is as well very flexible. Information technology gives you the ability to trade:
- All markets
Trade on underlying markets that include forex, stock indices, commodities, and more.
- All market conditions
Predict market movement using up/downwardly, bear upon/no touch, 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 50,000 USD. Losses are limited to your initial stake and nix more.
Why you should trade binary options with Binary.com
Enjoy an accolade-winning online trading platform with trading conditions that are ideal for new and experienced traders.
Award-winning online trading platform
- Elementary and intuitive
Enjoy a trading platform that's like shooting fish in a barrel to navigate and use. - Instant access
Open up an account and start trading in minutes. - Available 24/7
Merchandise when you want. Our Synthetic Indices are available even on weekends. - Patented technology
Merchandise with the manufacture pioneer and holder of a patented pricing technology. - Security and privacy
Trade confidently, knowing that your personal data, transactions, and funds are ever secure.
All weather and durations
- All markets and atmospheric condition
Trade currencies, stock indices, bolt and more than in rise, falling, sideways, quiet, and volatile markets. - Short to long-term durations
Choose timeframes from 10 seconds to 365 days.
Competitive and transparent pricing
- Sharp, benchmarked prices
Receive prices that are benchmarked confronting interbank rates. - Transparent run a risk and potential reward
Know how much you volition win or lose before y'all 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. - Ii-style pricing
Receive quotes for a trade and countertrade, and so you always get unbiased, transparent rates.
Platonic for new and experienced traders
- Low minimum stakes
Deposit as petty every bit 5 USD to start trading. - Trade co-ordinate to your preferred strategy
Trade based on "gut experience" or rely on technical and fundamental analysis. - Flexible
Choose from over i meg possible trade 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 trade binary options
Binary options trading is relatively easy. You can purchase a contract in just iii steps:
1
Ascertain your position
Choose the market, trade type, duration, barrier, 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 ane: Ascertain your position
The first step is to set the parameters of your trade. In that location are five merchandise parameters you lot need to adjust in order to receive a cost for the contract:
Choose from four available markets:
- Forex
Major and minor pairs, plus Smart FX indices - Stock Indices
All major worldwide stock indices sourced from the over-the-counter marketplace - Commodities
Major commodities such equally gold, silvery, and oil - Synthetic Indices
Our proprietary synthetic indices that simulate market forces
Cull from three primary merchandise types:
- Upward/Downwards
Predict if the market place will ascension or fall from its current level, or if it volition stop higher or lower than a price target. - Bear on/No bear on
Predict if the market volition touch or not touch a toll target. - In/Out
Predict if the marketplace will stay between or go outside ii price targets.
Bated from the three principal trade types above, y'all likewise become Asians and Digits merchandise types exclusively with our Synthetic Indices.
Prepare the length of your trade from 10 seconds to 365 days, whether you have a short-term or long-term view of the markets.
Prepare barrier(south) to define your position and trigger the payout you'll receive.
Cull the payout y'all wish to receive from correctly predicting this contract.
Step ii: Go your price
The price of the contract is automatically calculated past our patented pricing technology 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 most competitive prices. This means that you'll always receive fair and transparent pricing, whatever your position.
Step iii: Make your trade
When yous are satisfied with the price that you receive, execute your trade immediately. With our unique platform, in that location's no risk of 'slippage' or gaping markets. And nigh importantly, there are no hidden fees. You tin can also sell dorsum any long-term trades at whatsoever time to turn a profit from favourable market atmospheric condition.
Types of trades
Binary.com offers the post-obit trade types that will assistance y'all execute your market view or strategy:
Up/Downwards
In that location are 2 types of Upwardly/Downward trades:
- Rise/Fall
Predict that the marketplace volition rise or fall from its current level. - Higher/Lower
Predict that the market volition end higher or lower than a price target.
Bear on/No touch
Predict that the market will affect or not touch a target any fourth dimension during the contract menstruation.
In/Out
In that location are two types of In/Out trades:
- Ends Between/Ends Outside
Predict that the market stops inside or outside two price targets at the stop of the time period. - Stays Betwixt/Goes Outside
Predict that the market place stays within or goes exterior ii price targets any fourth dimension during the contract period.
Asians
Predict that the market place will cease college or lower than the average price.
Digits
Predict the final decimal digit of the spot cost with Digits. There are three types of Digits trades:
- Matches/Differs
Predict that the last digit will match or not match. - Fifty-fifty/Odd
Predict that the last digit is an fifty-fifty number or odd number afterwards the last tick. - Over/Under
Predict that the last digit is college or lower.
Reset Telephone call/Reset Put
At that place are two types of reset trades:
- Reset Phone call
Predict that the marketplace will end up college 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 electric current level or the level at a predetermined time (reset time).
At reset fourth dimension, if the spot is in the contrary direction of your prediction, the barrier is reset to that spot.
High Ticks/Depression Ticks
Purchase High Tick/Depression Tick contracts to predict the highest or lowest tick among the next five ticks.
But Ups/Only Downs
Available trade types:
- Just Ups
Win payout if consecutive ticks ascension 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 consecutive ticks autumn successively. Contract is lost when at least one tick rises or is equal to whatever of the previous ticks.
Please annotation 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 y'all to trade on a wide range of underlying markets. One 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 piece of cake for anyone to start trading.
Available markets
Forex
Major pairs, modest pairs, and Smart FX indices.
Stock Indices
Major worldwide stock indices sourced from the OTC market.
Commodities
All 4 precious metals, plus energy.
Synthetic Indices
Synthetic indices that mimic market volatility.
Forex
Trade popular major and pocket-size currency pairs, plus Smart FX indices – weighted indices that measure the value of a currency confronting a basket of major currencies.
There are 4 types of Smart FX indices that you can trade:
- AUD Index – Measures the value of the Australian dollar against a basket of five global currencies (USD, EUR, GBP, JPY, CAD), each weighted by xx%
- 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 Alphabetize – 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 against a basket of five global currencies (EUR, GBP, JPY, CAD, AUD), each weighted past twenty%
Stock Indices
Relish 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. Please notation 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, silver, palladium, and platinum – too equally energy in our list of commodities.
Synthetic Indices
Binary.com's Synthetic Indices are synthetic indices that mimic existent-world market place volatility and are bachelor 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 you sectional access to various trade types, such equally Upwards/Down, Bear upon/No Touch, In/Out, Asians, Digits, Lookbacks, Reset Call/Reset Put, Call Spread/Put Spread, Only Ups/But Downs, and more.
Synthetic Indices are further categorised into ii classes:
- Continuous Indices – Choose from the Volatility 10 (1s) Alphabetize, Volatility 25 (1s) Alphabetize, Volatility 50 (1s) Alphabetize, Volatility 75 (1s) Index, Volatility 100 (1s) Alphabetize, Volatility 10 Alphabetize, Volatility 25 Index, Volatility fifty Index, Volatility 75 Index, and Volatility 100 Index. These indices correspond to faux markets with abiding volatilities of x%, 25%, 50%, 75%, and 100% respectively.
- Daily Reset Indices – Daily Reset Indices replicate markets with a bullish and surly trend with a constant volatility. The Bull Market and Bear Market indices beginning at 00:00 GMT each twenty-four hour period, replicating bullish and bearish markets respectively.
Glossary
Barrier(southward)
The bulwark of a binary option trade is the price target y'all prepare for the underlying. You lot can cull trades that stay below or go above a price target, or stay between two targets.
Binary option
A binary choice is a contract purchased past a trader, which pays a pre-determined corporeality if their prediction is correct.
Commodities
Commodities are resource that are grown or extracted from the ground, such as silverish, gold and oil. On Binary.com, they are priced in United states dollars.
Contract period
The contract period is the timeframe of a trade. It is likewise called the elapsing.
Derivative
A derivative is a financial instrument whose value is determined past reference to an underlying market. Derivatives are usually traded in the inter-bank market, and binaries are i of the simplest forms of derivatives.
Duration
The elapsing is the length of a purchased trade (run across 'contract flow').
Ends Between/Ends Outside trades
An Ends Between trade pays out if the marketplace exit price is strictly higher than the low price target AND strictly lower than the high toll 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 by a trader.
Expiry price
The death price is the cost of the underlying when the contract expires.
Forex
In foreign exchange markets, traders can enter contracts based on the change in price of one currency every bit it relates to some other currency. For instance if a trader selects Ascension 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 Hateful Time, the official time used in the UK during winter. In summertime, the United kingdom changes to British Summertime Time, which is GMT + 1 60 minutes. All times on the Binary.com site use GMT all twelvemonth circular.
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 pick of companies in the stock market.
In/Out trades
These are trades where the trader selects a low and loftier bulwark, and predicts if the marketplace will stay within these barriers or go exterior them (see as well 'Stays Betwixt/Goes Outside trades').
Market exit price
The market exit toll is the price in result at the finish of the contract flow.
No Touch trades
These are trades where the trader selects a price target, and predicts that the market will never bear on the target before the death of the trade.
(Ane) Touch trades
These are trades where the trader selects a cost target, and predicts that the market will affect the target earlier the death of the merchandise.
Payout
The payout is the corporeality paid to an options trader if their prediction is correct.
Pip
Pip stands for 'percent in signal' which is generally the fourth decimal place (i.east. 0.0001).
Profit
The profit is the divergence between the purchase price (the stake) and the payout on a winning trade.
Synthetic Indices
The constructed indices simulate various real market place situations and provide an platonic platform for getting used to trading and testing strategies under various marketplace weather condition. These indices depend on volatility and drift, and assistance users to endeavor out scenarios similar - high volatility, low volatility, bullish and bearish trends.
Resale price
The resale toll indicates a contract'southward electric 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 expiry.
Return
The return is the money realized when the contract expires (see 'Payout').
Ascension/Fall trades
These are trades where the trader predicts if a market volition ascension or fall at the end of a selected time period.
Sell pick
It is sometimes possible to sell an option earlier the expiry of a trade, but only if a off-white price tin can exist determined. If this option is available, you volition see a 'Sell' button within the popup window, after clicking on the 'View' push button next to your trade in the portfolio.
Spot cost
This is the current price at which an underlying can exist bought or sold at a item time.
Stake
The pale is the amount that a trader must pay to enter into a trade.
Stays Between/Goes Exterior trades
A Stays Between merchandise pays out if the market place stays between (does non impact) BOTH the high barrier or the depression bulwark at whatever fourth dimension during the period chosen by a trader. A Goes Outside trade pays out if the market touches EITHER the high bulwark or the low bulwark at any time during the period called by a trader.
Tick
A tick is the minimum upward or downwardly movement in the price of a marketplace.
Underlying
Each binary option is a prediction on the futurity movement of an underlying market.
Source: https://www.binary.com/en/get-started/binary-options.html
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