Binary Options. Trading Manual

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Binary Options

Trading Manual

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An Introduction to Binary Trading

Binary Options trading is a simple trading method based on one simple principle; predicting whether the market price of a financial instrument will move up or down.

These are the only two possible outcomes; if a trader believes that the price of a financial instrument will move up, the ‘Up’/’Call’ tab should be selected. On the other hand, if a trader believes that the price of a financial instrument will move down, the ‘Down’/’Put’ tab should be selected. After selecting ‘Call’ or ‘Put’ (‘Up’ or ‘Down’), a trader should wait for the ‘Expiry Time’ chosen for the specific trade. Once the ‘Expiry Time’ has been reached, if the prediction was correct, the trade will be considered ‘in the money’ meaning that the expected results have been met and the account is entitled to receive the ‘payout’ amount. If the prediction was incorrect, the trade will be considered ‘out of the money’, meaning that the expected results have not been met.

The ‘payout’ and the ‘risk’ levels are known to the trader in advance. The ‘payout’ is the amount based on the pre-determined percentage of return whereas the ‘risk’ represents the amount invested for the specific trade.

Advantages of trading with Binary Options:

 Easy and simple ways of trading

 Variety of financial instruments  Preset ‘payout’ and ‘risk’ levels

 Several methods of trading

 User-friendly web based platform

 No downloads

 No spreads

 No additional costs

 No experience required

 Limited Risk!

This manual is intended to provide traders with an insight into Binary Options trading in addition to the methods, functions, features and the tools offered by the trading platform. It is recommended to read the manual in conjunction with the Binary Options ‘Trading Mechanism’ document.

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Glossary

The following are several terms that are used in Binary Options trading and their definitions: ‘Call/Up’: predicts that the price of an underlying asset will rise in value, at the expiration time, compared to the current market price.

‘Down’/’Put’: predicts that the price of an underlying asset will fall in value, at the expiration

time, compared to the current market price.

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

The ‘Entry Level’: the option price of the asset at the time of the execution of the trade. The ‘Expiry Time’: the pre-determined time and date at which an Open position expires. The ‘Expiration Level’: the rate of the asset at the time of the expiry of the position. ‘In the money’: financial term meaning that the option is profitable.

‘Out of the money’: financial term meaning that the option is not profitable.

‘At the money’:financial term meaning the option expired at exactly the same level as it was

at the time of initial entry. In this case, the full investment amount will be repaid to the account.

‘Double up’: feature that enables the trader to ‘double’ up investment amount for a specific

trade, by creating a new trade with the same conditions, at the current option price of the asset.

‘Roll Over’: feature that enables the trader to postpone the ‘Expiry Time’ of a trade.

‘Assets’: financial Instruments offered for trading. A full list of all assets that can be traded on

the Trading Platform is available under ‘Asset Index’ section of the main menu. This includes specifications such as description, expiry times, symbols and trading hours etc.

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The Trading Platform

The user-friendly trading platform has been designed to provide ease of use and to accommodate different methods of trading Binary Options.

Methods currently available for trading are:

• Binary Classic

• Options Builder

• 60 Seconds

• Open Platform

Trading can be made for any asset(s) simultaneously with any of the above mentioned trading methods.

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Binary Options Account

You may begin trading Binary Options as soon as:

• Your account application is complete

• Your documents have been sent

• Your account application has been approved

• Your funds have been deposited to your trading account.

No installations are required as the Binary Options platform is web based.

1. From the Windsor website, click on the ‘Binary’ tab from the main menu.

2. Log into your Binary Options account from the top right of the platform above the main

menu.

3. Enter your login credentials as sent by Windsor. Example: B-12345 and your password.

Forgotten Password:

• Enter your Binary Options trading account number and the human verification code.

• Submit the required information and receive a pop up message to confirm your request.

• Once the password has been reset, you will receive an email with your new Password.

NOTE: Password requests received during office hours (Mondays to Fridays from 9 a.m. to 6 p.m. Cyprus time) are processed within the same day.

For security reasons, we strongly recommend that you change the password provided by Windsor for your Binary Options trading account.

Changing an existing password:

• Log into your Binary Options account on the Windsor website

• Click on ‘Change Password’ under your account login.

• Enter your existing password in the ‘Current Password’ field

• Enter your new password in the ‘New Password’ and ‘Repeat Password’ fields

• Click on ‘Change Password’ to confirm your request

Note: We recommend passwords of minimum 6 characters which contain both numbers and letters. When you have finished trading, you must click on ‘Logout’ located on the top right hand corner of the platform.

Once you have logged in, you will be able to view the different sections that are available in the Binary Options trading platform.

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These include:

- Trade Now

- Asset Index

- Daily Market Review

- Guided Tour

- Expired Rates

- FAQs

Below the main menu you will find the various ways for trading Binary Options.

The same and/or different asset(s) can be traded under the same and/or different trading method(s).

Your current trading balance can be viewed above the main menu of the trading platform. The base currency and ‘payout’ amounts are in the US Dollar currency.

Important Information

Option prices are not market prices although it is based on the market price. Option prices are the price offered by the platform on which the client can predicate wither the actual market price on the expiration of the option will be above or below the current option price.

Windsor has no direct control over the rates in the binary options trading platform as they provided by a third-party regulated liquidity provider.

The time displayed on the trading platform is Cyprus local time (GMT +2 Winter time and GMT+3 Summer time).

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How to Trade Binary Options

The ‘Binary Classic’ Trading Method

The ‘Binary Classic’ Trading Method is the basic method used for trading Binary Options.

How to trade:

Step1. Select the ‘type’ of asset from menu bar from the following categories:

- Currencies

- Commodities

- Indices

- Stocks

Top picks (these are the most frequently traded assets).

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Step 3. Select the ‘Expiry Time’ from the drop down menu;

Step 4. Select ‘Up/ Call’ or ‘Down/Put’ tab, depending on the prediction whether the price of the asset will move up or down from the current market price.

Up/Call

The ‘Up/Call’ tab should be selected if the trader believes that the price of an asset will rise in value at the ‘expiration time’, compared to the current market price.

Down / Put

UP

Current market price

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The ‘Down/Put’ tab should be selected if the trader believes that the price of an underlying asset will fall in value at the ‘expiration time’, compared to the current market price.

NOTE: If prediction is correct, the trade will be ‘in the money’. If not, the trade will be ‘out of the money’. In the event that the option expires at exactly the same level as it was at the time of initial entry, the full ‘investment’ amount will be repaid to the account.

Step 5. Enter the ‘investment’ amount: minimum US$25 and maximum US$250 per trade.

Expiry Time

Current market price DOWN

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Step 6. Click on ‘Apply’ in order to trade.

NOTE: Once the ‘Apply’ button has been clicked, the trader has the ability to cancel the trade within 3 seconds.

‘Today Open Positions' can be viewed on the right hand side of the trading platform, as shown below:

In cases where several positions, on the same asset are open simultaneously, the plus sign ‘+’ should be clicked in order to expand the window, as shown below:

The upward triangles show the direction of open positions (‘Up/Call’).

The downward triangles show the direction of open positions (‘Down/Put’).

All trades can be viewed under the ’My Portfolio’ section of the main menu bar.

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My Portfolio

Trading history can be viewed under ‘My Portfolio’, section of the main menu.

NOTE: You must be logged into the platform in order to access the ‘My Portfolio’ section.

Trader can opt to see trades whereby ‘expiration time’ has been reached or the open positions. To change the view, select either ‘Expired’ or ‘Open’.

Transactions with regards to deposits and withdrawals can be viewed under the ‘Transaction History’ Tab, located on the right hand side of the platform as shown below.

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Trading Features

Additional features available for trading.

Available for the ‘Binary Classic’, ‘Option Builder’ and ‘Open Platform’ Trading Methods:

The ‘Double Up’

This feature allows the trader to double up the ‘investment’ amount for a specific trade, by creating a new trade with the same conditions, with the current price of the asset.

NOTE: The ‘Double up’ feature only uses the current market price of a asset and not the market price that was available upon the initial execution of the trade.

Display of the Double Up feature:

When requesting the ‘Double Up’ feature, a confirmation window will appear. To continue, the ‘Apply’ should be clicked, or else ‘Cancel’ should be clicked.

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Doubled up positions will appear as new Open Positions:

To use the ‘Double up’ feature, the Open Position must not be in the ‘lock down’ period. In cases where the Open Position is in the ‘lock down’ period, the message will appear with the note: ‘can’t use this feature at this time’.

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The ‘Roll Over’

Available for ‘Binary Classic’ and ‘Open Platform’ trading methods.

This feature enables the trader to postpone the expiration time of an open position. The following conditions apply when using the ‘Roll Over’ feature:

• An additional 30% will automatically be added to the initial ‘investment amount’ for the

specific trade.

• The trade can be ‘Rolled Over’ up to 15 minutes prior to the ‘expiration time’.

• ‘Roll Over’ can only be applied once per trade.

• ‘Roll Over’ is not available for the last expiry time of the day. Display of ‘Roll Over’ feature:

‘Roll Over’ available ‘Roll Over’ unavailable

The ‘Roll Over’ feature is unavailable when:

- Open Position is too close to the ‘expiration time’.

- The feature has already been used for the specific Open Position.

- When it is the last expiry time of the day.

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Trader’s Choice

This tool is used as an indication; It demonstrates the percentage of trades executed as ‘Up/Call’ or ‘Down/Put’ and is updated every 48 hours for the past week.

• When the scale is mainly green, it indicates a preference for ‘Up/Call’ trades;

• When the scale is mainly blue, it indicates a preference for ‘Down/Put’ trades.

•

You may also refer to the percentages found beneath ‘Call’ and ‘Put’.

NOTE: ‘Traders Choice’ is only an indication of general preference between ‘Up/Call’ and ‘Down/Put’ therefore should not be considered as the basis for trading decisions.

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The 60 Seconds Trading Method

A trading method which involves reaching a target level within a 60 second timeframe.

Step 1. Select the type of asset that you wish to trade from the drop down menu. How to trade:

Step 2. Enter the investment amount; minimum US$5 to maximum US$250 per trade.

Step 3. Press ‘Call/UP’ or ‘Put/Down’ depending on whether you believe that the price of the asset will move up or down.

Step 4. Click on ‘Apply’ to trade.

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The ‘Time’ represents the remaining time left until the specific Open Position expires. Open positions with a green background

Open positions with a

represent open positons for which the market price of the asset is moving in the direction chosen by the trader.

blue background

Once the ‘Time’ has reached zero, the trade will briefly display ‘Expiring’ and then the result of the trade (‘WON’ or ‘LOST’). After the result has been displayed, the trade is removed from the list of Open Positions.

represent open positions for which the market price of the asset is moving in an opposite direction from the one chosen by the trader at the opening.

‘Expired’ trades can then be viewed from the ‘My Portfolio’ section of the main menu bar.

NOTE: If the trader chooses to move away from the 60 Seconds trading method, prior to the expiry of the Open Position, the trade can be viewed under ‘My Portfolio’ section of the main menu bar.

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The Option Builder Trading Method

The ‘Option Builder’ trading method enables the trader to choose the ‘Expiry Time’ and is the only method that allows the trader to customize ‘profit’ and ‘risk’ levels.

Step 1: Select an asset from the drop down menu. How to trade:

Step 2: Select the expiry time from the drop downs which usually has to be up to 2 hours & 30 minutes away from the current time

Notes:

• The Time & minute refer to the time of the day you want your option to expire

• The time is displayed in a 24 hour clock i.e. to select 2 p.m. the display should show ’14 hrs

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Step 3. Select ‘profit’ and ‘risk’ levels (%) from the drop down menu. The ratio chosen will determine both the ‘payout’ amount and the ‘risk’ amount, irrelevant what is the ‘investment amount’.

Example: If the ‘investment amount’ is US$ 100 and the selected ‘profit’ level is 57% with a ‘risk’ level of 30%, and in cases where the prediction is correct, the ‘payout’ amount would be US$157. In cases where the prediction is incorrect, loss of the ‘investment amount’ would be US$ 30 and not the full ‘investment amount’.

Note: the option to choose the ‘risk’ level may not be available in cases where the “Expiry Time” of the trade is more than 3.5 hours (210 minutes).

Step 4.

Enter the ‘investment’ amount (minimum US$25 and maximum US$ 250 per transaction).

Step 5. Select ‘Call/Up’ or ‘Put/Down’ depending on whether the trader believes that the price of the asset will move up or down.

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After the trade has been confirmed, the trader has the ability to cancel the trade within 3 seconds.

‘Today Open Positions’ can be viewed on the right hand side of the Trading Platform.

‘Expired trades’ can be viewed in the ‘My Portfolio’ section of the main menu.

The ‘Open Platform’ Trading Method

The ‘Open Platform’ trading method gives the trader the ability to view the ‘History’, for the specific timeframe of an asset from 15 minutes to 5 hours. This is available from the icon shown below:

How to trade:

Step 1. Select the type of the asset from the drop down menu Step 2. Select the ‘Expiry Time’ from the drop down menu

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Step 3. ‘Call/UP’ or ‘Put/Down’ depending on whether the trader believes that the price of the asset will move up or down.

Step 4: Enter the ‘investment amount’ (minimum US$25 to maximum US$250 per trade).

- ‘Payout’ the expected price move of the asset;

- ‘Direction’ indicates either ‘Call’ or ‘Put’.

- ‘Amount’ represents the ‘investment amount’.

- ‘Potential Payout’ represents the ‘payout amount’ in cases where the prediction is correct.

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After the trade has been confirmed, the trader has the ability to cancel the trade within 3 seconds. ‘Open Positions’ can be viewed at the bottom of the Trading Platform, as shown below.

NOTE: Open positions traded with the Binary Classic method can also be viewed here.

All positions can also be viewed in the ‘My Portfolio’ section from the main menu. The below features are also available:

‘Roll Over’ – To extend the ‘Expiry Time’ of the Open Position

x2 Double Up’ – This feature allows the trader to double up the ‘investment amount’, for a specific Open Position, by creating a new trade with the same conditions, with the current market price of the asset. ‘

NOTE: The ‘Double up’ feature only uses the current market price of the assets and not the market price that was available upon the initial execution of the trade.

Roll Over’ or the ‘Double Up’ features when the asset is in the red zone known as the ‘no trading zone’.

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Sell ‘Sell’ - The ‘Sell’ or also referred to as the ‘Buymeout’ tool is available in this method of trading. When it is available, the trader has the ability to exit Open Position before the “Expiry time” is met, at the market price of the specific financial instrument.

NOTE: The ‘Sell’ or the ‘Buymeout’ feature cannot be applied when the financial instrument is in the ‘red’ or ‘no trading’ zone.

The ‘Traders Choice’ is used as an indication and is updated every 48 hours for the past week. The colors of the graph indicate:

o Green: a higher market price of an asset than the previous trading day's closing price.

o Orange: a lower market price of an asset than the previous trading day's closing price.

To exit ‘Open Platform’ Trading Method, click on the ‘x’ at the top right corner of the window, as shown below:

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Asset Index

The ‘Asset Index’ further provides information about assets that are offered for trading on the trading platform.

The ‘Asset Index’ classifies financial instruments into following categories: Stocks, Commodities, Currencies and Indices.

For each category of assets the following information is included: Trading hours, Reuters Code and Expiry Rule.

Note: The ‘Trading hours’ are displayed in GMT 0 time (not Cyprus time).

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Daily Market Review

This information is backdated (24 hours) and should be used for demonstration purposes only. The information contained above is provided by a third party platform provider, and is not endorsed or recommended by Windsor. Any strategies or opinions expressed are those of the third party platform provider and not of Windsor. Windsor cannot guarantee the accuracy or validity of any of the information contained within. Any information contained above is not intended as an offer or solicitation for the purchase or sale of any financial instrument, or to provide any investment advice or service. Client should ensure that financial instruments are suitable for his/her own investment needs and seek independent advice if necessary.

Guided Tour

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Expired Rates

‘Expired Rates’ can be used to view information regarding the expiration levels, for a specific asset as per a specific date.

The trader should select the date and the asset from the drop down menu in order to view a table with the ‘Asset’, ‘Expiry Rate’ and ‘Expiry Date’.

FAQ

The trader may refer to this section in cases where further information is required in regards to the Trading Platform.