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Binary Options

What are binary options

A binary option is a type of option with a fixed payout in which you predict the outcome from two possible results. If your prediction is correct, you receive the agreed payout. If not, you lose your initial stake, and nothing more. It’s called ‘binary’ because there can be only two outcomes – win or lose.

Advantages of binary options trading

Aside from the simplicity of its ‘yes or no’ proposition, binary options trading is also very flexible. It 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/down, touch/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 nothing more.

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Why you should trade binary options with Binary.com

Enjoy an award-winning online trading platform with trading conditions that are ideal for new and experienced traders.

Award-winning online trading platform

  • Simple and intuitive
    Enjoy a trading platform that’s easy to navigate and use.
  • Instant access
    Open an account and start trading in minutes.
  • Available 24/7
    Trade when you want. Our Synthetic Indices are available even on weekends.
  • Patented technology
    Trade with the industry pioneer and holder of a patented pricing technology.
  • Security and privacy
    Trade confidently, knowing that your personal data, transactions, and funds are always secure.

All conditions and durations

  • All markets and conditions
    Trade currencies, stock indices, commodities and more in rising, 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 against interbank rates.
  • Transparent risk and potential reward
    Know how much you will win or lose before you purchase 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.
  • Two-way pricing
    Receive quotes for a trade and countertrade, so you always get unbiased, transparent rates.

Ideal for new and experienced traders

  • Low minimum stakes
    Deposit as little as 5 USD to start trading.
  • Trade according to your preferred strategy
    Trade based on “gut feel” or rely on technical and fundamental analysis.
  • Flexible
    Choose from over one million possible trade variations at any time, and customise your trades according 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 three steps:

Binary Options Markets

The binary options market has evolved greatly since its early beginnings. The market used to be an Over-the-Counter (OTC) instrument that was traded exclusively by high net-worth investors and financial institutions. This was until 2007 when the Securities and Exchange Commission approved proposals to open the market up to the public.

Since then, there has been a transformation in the depth of the market and in how the financial assets are traded. The binary options markets now incorporate trading in almost every financial instrument on the market today.

Market Strategies

If you want strategies for trading on the different markets, visit our strategy page.

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Forex

We have the currency market, popularly called the forex market. Here traders can trade binary bets on the popularly traded currencies in the market. In the last one year, there have been some changes in the forex market, with three interventions in the Japanese Yen by the Bank of Japan. In addition, the Swiss National Bank (SNB) also fixed a minimum exchange rate for the Euro vs. the Confederacio Helvetica Franc (EURCHF) at 1.2000. With statements by both central banks to defend the integrity of the exchange rates of their currencies at all costs, binary bet market brokers have yanked off the Yen crosses and the currency pairs carrying the Swiss Franc from their forex market assets.

Commodities

Virtually every kind of commodity such as corn, coffee, cocoa, soyabeans, natural gas, crude oil and cotton are traded as binary options. The binary bet markets featuring commodities is a fantastic way of playing the commodities market without being unnecessarily exposed to the high-risk and volatile nature of the commodities market. Ordinarily, commodity trading requires a large capital outlay, hefty margin requirements and is extremely volatile. Not many traders can play this market successfully. But the binary bets market provides a low-cost and low-risk way of trading commodities.

Spot Metals

Though sometimes listed under commodities, I usually like to take spot metals differently as they have their own unique trading characteristics. Gold and silver are the popularly traded spot metals. Once again, the binary bet markets offers a low-risk and low-cost way of trading spot gold and silver.

Stock Index Futures

Stock index futures are a great way to play the stock markets. Many traders have lost a lot of money in stocks between 2008 and 2020. Rather than trade individual stocks, why not trade the stock index futures on the binary options markets? Virtually all the major stock indexes can be traded in the binary bets markets. This also offers traders a low-cost way of trading the index futures. Examples of index futures traded are the Dow Jones, Nasdaq, Xetra DAX, IBEX, FTSE100 and Nikkei 225.

Bonds

Many people may not know it, but bonds can also be traded on the binary bets market. You can actually trade individual bonds on the market. One example is the German government bond, which is traded on one of the popular binary options brokerages. The yields of government bonds tend to rise when the economy of the parent country is in trouble, so the news could actually give a trader some hints as to how to play them on the binary bets markets.

Stocks

Blue-chip stocks such as those of Verizon, Apple, Microsoft, Vodafone, Telefonica and British Petroleum (BP) are examples of individual stocks that can be traded as binary options.

The binary bet markets is indeed a huge opportunity that has presented itself for the taking. Perceptive traders can step out of the comfort zone of conventional investment vehicles to take advantage of what the binary bet markets has to offer. Innovations such as the development of the mobile trading platforms have also made it possible to trade binaries on the go. With the uncertainties pervading other markets, the binary bet markets look set to get increased relevance in the financial markets for some time to come.

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