FAQ -What are Binary Options?

FAQ Binary Option Traders

 

What are Binary Options?

Binary or Digital Options are a relative new way of trading the global financial markets. Trading binary options can only have two outcomes for a trader, Win-or-Loose (0/1). If the trade is correct (win), the trader may earn payouts 65-95%. If the trade looses, the trader may get a refund back (0-15%). In most cases the sum of the Payout and the Refund Rates does not exceed 90% of the value of the initial trade.

 

How Can I Choose the Best Broker to Trade Binary Options?

You should focus mainly on the Payout and Refund Rate but there are many other aspects that you should consider before choosing a broker. BinaryValue includes an extended Broker Ratings Section powered by the Rating Formula v3.5 where you may very useful ratings and comparisons between popular Binary Option Brokers.

» Binary Brokers Directory | » Learn more on the Rating Formula v3.5

 

Advantages -Why Trading Binary Options?

There are a few good reasons for trading Binary Options, here are the most important ones:

1) You may trade any popular financial market (Forex, Stocks, Indices, Commodities, etc) 24 hours per day

2) You don’t have to pay any Margin on a trade (No Margin Calls)

3) You may profit from a both Bull or a Bear (falling) Market

4) No spreads and no commissions are charged

5) Variety of trading tools, time expiries and trading options

» Binary Option Tips | » Binary Options Strategies

 

What are the Basics when Trading Binary Options?

Here are the basic terms when trading binary options:

Call / Put:  It defines if you trade a Bull Market (Call) or a Bear Market (Put)

Expiry date: Defines the duration of an opened position

Strike price: It is the price that defines your Win or Loose

Payout: It defines the Return you get if your trade wins

Refund Rate: It defines the Refund you get if your trade looses

» Binary Options Glossary

 

Which are the Most Common Types of Binary Options?

There are many types of traded binary options, here are the most common types:

1) High / Low Options – Traders predict if a market move Above or Below a specific price level

2) Touch / No Touch Options – Traders predict if the price of an asset reaches (Touch) or not (No Touch) a specific price, before it expires

3) 60 Sec Options –Trade the market in 60 sec (it is very risky and we certainly not recommend this type of trading binary options)

4) Boundary Options – Traders predict if the price of a particular asset expires within or without a specific price range

Compare Binary Options Trading:

» Forex Traders | » Oil Traders | » Gold Traders | » Stock Traders

 

Which Financial Markets Can I Trade using Binary Options?

Almost every kind of Financial Market / Financial Traded Asset is available today for Binary Options Traders:

1) Forex Market 

The Forex Market is one of the most popular financial markets in the world. You may trade pairs such is EUR/USD, GBP/USD, USD/JPY, EUR/AUD etc. Here are the most popular Forex pairs that are called ‘The Majors’:

EUR/USD | GBP/USD | USD/JPY | CHF/USD | USD/CHF | USD/AUD | USD/NZD | USD/CAD

More on the » Forex Market 

2) Stocks & Indices

You may trade all popular stocks from US and Western Europe plus stocks in Asia and more. Popular indices are also available such is Nasdaq, Dow Jones, S&P 500, DAX, FTSE etc.

More on » Trading Stocks

3) Commodities

There are many commodities available for trading using Binary Options. The most popular is Gold but you may trade also Silver, Copper, Platinum, Natural Gas and Oil. Some brokers offer in addition Corn, Wheat, Sugar, Cotton Coffee, etc.

More on the » Commodity Market 

 

Which are the Types of Binary Options Bonuses?

Almost every Binary Option Broker offers a Welcome Bonus nowadays. Be careful a high deposit bonus is important but it is certainly not the most important issue that you should consider:

No-Deposit Bonus

This type of bonus is offered to new traders. You receive free cash to trade but in order to be able to withdraw it, you must first trade about 20 times its size.

Deposit Bonus

It is a bonus offered mainly to new traders. Deposit Bonuses in the Binary Options Industry can be from 30% to 100%. As in the case of No-Deposit Bonus, in order to be able to withdraw a Deposit Bonus you must first trade about 20 times its size.

Loyalty Bonus

It is a type of bonus offered to existing clients as an incentive to re-deposit funds.

 

Binary Option Brokers & Bonus

Here is a list with Binary Option Brokers and their bonus policies:

-BINARY OPTIONS BROKER- 

-MAX PAYOUT & REFUND-

-REVIEW- 

-BONUS & WEB-

■ CapitalOption

US: No

90 Trading Assets 

Payout: 85%

Refund: 5%

» Review

Bonus: 40%

» Visit 

■ GOptions

US: Yes 

70 Trading Assets 

Payout: 90%

Refund: 0% 

» Review

Bonus: 25-75%

» Visit

■ ZoomTrader

US: Yes

65 Trading Assets 

Payout: 89%

Refund: 0% 

» Review

Bonus: 40%

» Visit

■ Stock Pair

US: Yes

120 Trading Assets 

Payout: 82%

Refund: 0%

» Review

Bonus: 40%

» Visit

■ OptionRally

US: No

70 Trading Assets

Payout: 78%

Refund: 15%

» Review

Bonus: 30%

» Visit

■ Banc De Binary

US: No

90 Trading Assets

Payout: 75%

Refund: 10% 

» Review

Bonus: 100%

» Visit

 

Compare and Review Binary Option Brokers » Binary Brokers Directory

Read More: » Getting Started with Binary Options | » Binary Option Signals | » Trading Tips | » Binary Options FAQ | » Binary Options Glossary | » Binary Options Strategies

 

 

FAQ, What are Binary Options

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