Frequently Asked Questions
The returns are guaranteed to make you a richer trader by an estimate of 60% - 100%. Every underlying asset has its corresponding pre-determined payout indicated on the website. Again, payout differs among the various assets.
Should the binary option expire Out of the Money (OTM), the trader will unfortunately lose their initial investment. A Sell option is available nonetheless; this allows the trader to sell the position before expiration for the current option price.
Yes, you do not need to hold the contract until expiration. Traders can take their earnings or cut their losses early at any time.
Should the binary option expire exactly at the same level in which the trade was made, the entire invested capital will be returned to the investor.
This depends on the tax law in your country of residence.
One reason for this is insufficient funds in a trader’s account. There are also occasional short-term technical difficulties that prevent clients from investing, though these issues are often fixed immediately.
Also called “fixed return” or “digital options”, a binary option is a financial instrument that gives you access to trade underlying assets. One distinct feature of binaries is that it is simple and easy to use and understand.
Binary means two—and in that sense, trading binaries can simply make one either win or lose; you gain a fixed profit or you lose your original investment. Available items to buy, sell or invest in are commodities, stock indices, currency pairs and sometimes even economic events like the monthly unemployment report.
Trading binary options allows the trader to profit should they predict the correct price movement of their trade.
Binary options trading include shorter expiry times, predetermined yields, and a binary option cannot be sold before the selected expiry time, unlike traditional options. They have different payouts, fees, risks, and an entirely different liquidity structure and investment process.
These options don’t give you the right to buy or sell a particular asset, but allow you to trade on where you think the price of the asset is headed. They also have time element, in which the length is entirely up to you.
For instance, you decide that the price of crude oil will climb above $55.00 by 1:00 PM the next day. You can purchase a binary option that would pay off if crude is indeed priced above that specified level when the trade expires. Now should you think of the opposite to happen, you can take the other position and be the seller of that option.
An underlying asset is the financial instrument on which a price is derived from. Assets include stocks, futures, commodities, currencies or indices. Since the asset lacks ownership, when a binary option is bought the cash value mirrors the live market price of the asset.
A call or “up” option gives the trader profit if they predicted that the value of the asset will rise before the expiration time. Meanwhile, if the trader predicted that the value will decrease, then they select the put or “down” option. However, if the option expires exactly at the level of the strike price, the initial investment is returned.
This is the time in which a specific trading terminates. A one minute trading will expire after a minute, precisely. It is during the expiration time when the trader sees if they have won or lost.
The underlying assets’ value often changes and these changes reflects on the asset’s quoted price—the level. These levels show the average price of the assets according to global financial exchange. We base these on exchange data provided by various reliable sources. We guarantee that we will aid you in pre-determining prices for your transactions.
An expiry level is the price in which the option expires based on the quote source. Once the option expires, its prices indicate whether the trader’s investment is OTM or ITM. Levels differ across the various assets.
Meanwhile, expiry time reflects the exact time and date a binary option expires. Before entering a trade, it is up to the trader to pre-determine the asset's expiry time.
A strike price mirrors the current market price for an underlying asset when an option is made.
These are the sums a trader invests in trades. The amounts can differ according to one’s trading needs. These also position the level of pre-determined payout percentages and return of investment at the option’s expiration time.
There are three possible winning results in the binary payouts: In the Money (ITM), Out of the Money (OTM), and Tie, or At the Money (ATM). These place your payout to the asset final stop, whether in ended above, below or aligned with the market price.
ATM option is when the strike price is equal to the current price of the underlying stock.
ITM call is when the strike price is lower than the present price of the underlying. ITM put, meanwhile, is a strike price that is higher than the market price of the underlying asset.
For example, if Apple traded at $65.00, then January $60.00 call option would be an example on an ITM call. The reason is that at any time before the expiration you could exercise the option and profit from the difference in value: in this case, $5.00. ($65.00 stock price – $60.00 call option strike price = $5.00 of intrinsic value.)
The opposite goes for OTM; this call is when the strike price is higher than the price of the underlying asset, and an OTM put option when a strike price that is lower than the market price of the underlying asset.
In our previous example, if you chose January $70.00 call while the Apple stock was at $65.00, you would be purchasing the stock for $70.00 when the stock is trading at $65.00 in the open market. This would result in a $5.00 loss.