FAQ -What are Binary Options?

FAQ Binary Option Traders


What are Binary Options?

Binary or Digital Options are a relatively new way of trading in 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 loses, 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 Rating Section powered by the Rating Formula v3.5 where you may very useful ratings and comparisons between popular Binary Options Brokers.

» 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 both Bull or a Bear (falling) Market

4) No spreads and no commissions are charged

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

» Binary Options 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 loses

» 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


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’:


More on the » Forex Market 

2) Stocks & Indices

You may trade all popular stocks from the US and Western Europe plus stocks in Asia and more. Popular indices are also available such as 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 Options 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 exist clients as an incentive to re-deposit funds.


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


FAQ, What are Binary Options


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JustForex offer 90 Forex pairs and 39 cryptocurrency pairs, currently, there is a 100% Welcome Bonus promotion

■ JUSTFOREX offer a 100% Welcome Bonus up to 20,000 USD, you can withdraw the bonus and the profits of the bonus.



■ Profit received on the bonus funds is withdrawable after 2 lots are traded, and profit reaches $25 or more


Option Broker Ratings

Binary Option Brokes Ratings are based on our unique Formula v.3.5 which combines 4 major factors: Safety of Funds, Competition, Trading Options and Technology..

» The Rating Formula v3.5

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Trading Systems Reviews

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Binary Options Robots

Learn how to create a custom Expert Advisor for trading Binary Options given only your binary options broker supports MetaTrader4.

» Creating Custom Robots for Trading Binary Options

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