Trade In 3 Steps
What are Binary Options?Binary Options, also named digital options (DO) (more common in forex/interest rate markets) and fixed return options (FRO) (on the American Stock Exchange), is one of the simplest financial investment tools nowadays. It allows you to make prediction if the market price of an asset is going to rise or fall after a specific time interval (let said it can be 60 seconds, 2 minutes, 5 minutes, etc.). The amount of profit/loss is fixed in accordance with your investment. Therefore, risk can be locked.
Types of Binary Options
For example, I would like to invest in Oil, the market price is 43.725 now. I bet USD 1,000 it will rise after 60 seconds and the return rate is 70%. Assuming the market price of Oil is 43.73 at maturation, profit of USD 700 (USD 1,000 X 70%) can be earned.
For example, I would like to invest in AUD/USD. The market price and target price are 0.7057 and 0.706 respectively. The return rate is 70% and maturation time is 16:45. I bet USD 1,000 the market price will “touch” the target price at anytime before maturation. Assuming the market price hits 0.706 before 16:45, profit of USD 700 (USD 1,000 X 70%) can be earned. (Vice versa for “not touch”)
Superiority of Binary Options1. Simplicity: You just need to decide the price of an asset is going to rise/fall after a specific period of time.
In-The-MoneyA financial term, which means that the option is profitable (for example – if the option was a UP – then the current price of the underlying asset would be higher than the original price at the time the option had been purchased).
At-The-MoneyA financial term, which means that the current price of the underlying asset is the same as the price when the option was purchased.
Out-The-MoneyA financial term, which means the option in notprofitable.A Digital option UP Option is out-of-the-moneywhen the asset’s Expiry Price Level is lower than the option’s buying price.A Digital option DOWN Option is out-of-the-moneywhen the asset’s Expiry Price Level is higher than the option’s buying price.
AssetWe enables trading on a variety of assets, for more information about each asset and the related expiry rules see “Asset Index”
Asset TypeThis is a specific group of investments, e.g. stocks, forex, commodities and indices.
CommoditiesThis asset type includes goods and services that satisfy human needs and wants such as energy, food and metals.
CurrenciesAre forms of paper money used as an easy medium of exchange between buyers and sellers.
Currency OptionPresents a trader with the right (but not obligation) to buy or sell a predetermined quantity of a particular currency at a specified exchange rate.
Currency TradingThe act of buying and selling global currencies. Currency trading is used by banks and other financial institutions to support international trade. Individual investors can also speculate on currency trading using Forex.
Forex OptionThese binary options use underlying assets based on the currency pairs traded on Forex, e.g. EURUSD and GBPUSD.
FuturesThese are standardized contracts between buyers and seller to exchange selected assets of predetermined quantity and quality for prices agreed today (the strike or futures prices) with delivery to occur at mutually agreed future dates.
IndicesAre selections of stocks that have been grouped according to a certain criteria.
InvestmentThis is the amount of equity used to speculate on the financial markets with the intent to make profits.
PayoutThis is the profit that investors will receive if binary options expire ‘in-the-money’. Our payouts are as high as 80%.
Trading HoursEach asset has its own trading hours and trading days and holidays. To see the assets trading hours click asset index. Sometimes you will see that even though the asset is supposed to be traded it’s not listed. In such a case simply press refresh.
Target priceIs an investor in the purchase price of an underlying asset transaction。
Market priceThe current value of an underlying asset.
ParityOne of the expressions of the three options. Represents the subject of the transaction or the end of the transaction, which is due to the same price as the target price. In this state, the amount of the investment amount of investors will be refunded in full.
Expiry PriceThe real-time price of the binary options underlying asset quoted at the selected time of expiry. The value is used to determine if the binary option expired in-the-money or out-of-the-money.
Expiration timeThe specific predetermined hour and date when the time allotted for estimating the direction of an assets market value closes.
YieldYield is the ratio of the value of the return of investment and the proportion of the investment principal.