Define binary option trading

Define binary option trading

What are binary optionsA binary option is a type of option with a fixed payout in which you predict the outcome from two possible define binary option trading. If your prediction is correct, you receive the agreed payout. If not, you lose your initial stake, and nothing more. Losses are limited to your initial stake and nothing more.

Why you should trade binary options with Binary. Enjoy an award-winning online trading platform with trading conditions that are ideal for new and experienced traders. Choose the market, trade type, duration, barrier, and payout. Receive instant prices based on your position. Buy the contract or re-define your position. Aside from the three main trade types above, you also get Asians and Digits trade types exclusively with our Volatility Indices.

Set the length of your trade from 10 seconds to 365 days, whether you have a short-term or long-term view of the markets. Choose the payout you wish to receive from correctly predicting this contract. The price 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 get the most competitive prices. This means that you’ll always receive fair and transparent pricing, whatever your position. When you are satisfied with the price that you receive, execute your trade immediately.

With our unique platform, there’s no risk of ‘slippage’ or gaping markets. And most importantly, there are no hidden fees. You can also sell back any long-term trades at any time to profit from favourable market conditions. At reset time, if the spot is in the opposite direction of your prediction, the barrier is reset to that spot.

Low Tick contracts to predict the highest or lowest tick among the next five ticks. 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. Win payout if consecutive ticks fall successively. Contract is lost when at least one tick rises or is equal to any of the previous ticks. Only Downs are available exclusively with our Volatility Indices.

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 easy for anyone to start trading. Please note that due to their OTC nature, the prices of our indices may differ from their counterparts on centralised exchanges. They are based on a cryptographically secure random number generator audited for fairness by an independent third party. Volatility Indices also give you exclusive access to two additional trade types: Asians and Digits.

Choose from the Volatility 10 Index, Volatility 25 Index, Volatility 50 Index, Volatility 75 Index, and Volatility 100 Index. Daily Reset Indices replicate markets with a bullish and bearish trend with a constant volatility. The barrier of a binary option trade is the price target you set for the underlying. You can choose trades that stay below or go above a price target, or stay between two targets.

Binary optionA binary option is a contract purchased by a trader, which pays a pre-determined amount if their prediction is correct. It is also called the duration. DerivativeA derivative is a financial instrument whose value is determined by reference to an underlying market. Derivatives are commonly traded in the inter-bank market, and binaries are one of the simplest forms of derivatives.

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. USD market, they are predicting that the value of the Euro will rise in relation to the value of the US dollar. GMTGMT stands for Greenwich Mean Time, the official time used in the UK during winter. These indices depend on volatility and drift, and help users to try out scenarios like – high volatility, low volatility, bullish and bearish trends.

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. If this option is available, you will see a ‘Sell’ button inside the popup window, after clicking on the ‘View’ button next to your trade in the portfolio. BOTH the high barrier or the low barrier at any time during the period chosen by a trader.

A Goes Outside trade pays out if the market touches EITHER the high barrier or the low barrier at any time during the period chosen by a trader. TickA tick is the minimum upward or downward movement in the price of a market. This website’s services are not made available in certain countries such as the USA, Canada, Costa Rica, Hong Kong, Japan, or to persons under age 18. Trading binary options may not be suitable for everyone. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. Trading binary options and CFDs on Volatility Indices is classified as a gambling activity.