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What are binary options?

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What are binary options?

Binary Options, also known as Digital Options, all-or-nothing

options, or Fixed Return Options (FROs).

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• With Binary Options, a trader never purchases or owns the asset – as he is only predicting the direction that the asset will go. There are only two possible outcomes (up or down), and the price of the asset does not matter.

• As far as a trader is concerned, all that matters is if his prediction was correct, or incorrect.

• If he predicted correctly, then the trade is considered "in the money", and the trader will receive the fixed return on his investment.

• If he predicted incorrectly, then the trade is considered "out of the money", and he will lose the amount agreed upon in the option.

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History

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Basic Terms

Underlying Asset: a commodity, index, stock, currency pair or any other financial asset that constitutes the basis for creating an option.

Expiry Level (Rate): the expiry level is the level of the underlying asset at the time of expiry of the asset according to Reuters. This is the

determining level if the option has expired in-the-money or out-of-the-money. A different expiry level is determined for each underlying asset.

Entry Rate (Price): the level of the underlying asset at the time of the execution of the trade according to Reuters and according to market’s conditions.

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Basic Terms

Call Option: an option that provides the holder with a profit when the underlying asset increases in price compared with the level at which it was purchased.

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Asset Types

Currencies: a pair of foreign exchange currencies rate. For

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Asset Types

Commodities – Major international commodities indexes such as: Gold, Silver, Oil, Sugar, Coffee, Wheat, Platinum etc.

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Asset Types

Index – each index asset, represents a price/rate of a group of stocks traded in one of the stocks exchange markets.

• For example- Nasdaq Future – represents the index of the 100 largest domestic and international, non financial companies registered in Wall Street (The primer US stocks exchange in NY).

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Asset Types

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Classic Binary Options

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Classic Binary Options

In order to commit a classic binary options trade,

the trader should:

1. Choose the type of the asset he wants to

trade. Currencies, commodities, indices or

stocks.

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Classic Binary Options

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Classic Binary Options

4.

Decide if the rate will go up or down and choose

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Classic Binary Options

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Classic Binary Options

6

. The trader will receive, for 3 seconds only, a “last

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Classic Binary Options

On the right side of the

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Classic Binary Options

Roll Over

The Roll Over feature is enable trader to extend the expiration time of the position to one of the next options.

This option applies to certain conditions only:

1. An additional 30% will be added automatically to the initial investment.

2. The trader has to be in a loosing position in order to use the Roll Over.

3. The trader can’t Roll Over to the last expiry time of the day.

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Classic Binary Options

Double Up

This feature is enable trader to increase the initial

investment.

The trader can “double up” his investment amount at any

time.

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Option Builder

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Option Builder

Option Builder allows trader to create his own,

custom made, trading option.

In Option Builder the trader can choose:

1. The exact asset to trade

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Option Builder

Choose Asset

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Option Builder

Choose Expire Time

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Option Builder

Choose Risk Level

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Option Builder

Choose Investment Amount

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Option Builder

Choose Call/Up or Put/Down

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Option Builder

Click “Apply” to Confirm the Trade

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Option Builder

3 Seconds Cancellation

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One Touch Options

This feature allows:

1. Offering our traders, the trading options:

• 24/7

• At the after hours, when all financial

markets are close

• During weekends and holydays

2. Offering payout rates of 300%-700%

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One Touch Options

Asset Current rate Only one Direction Goal Rate Payout Rate

Last Time to open the position

Expiry Time

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One Touch Options

Choose Position

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One Touch Options

Choose Investment Amount

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One Touch Options

Click “Apply”

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One Touch Options

Get Confirmation

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References

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