Latest binary options news
TechFinancials First Day of Trading On a valuation front for the binary options industry as a whole, the TechFinancials IPO deferred from last Friday (20th Feb) to 11th March is not a promising sign. TechFinancials Float Valuation The Nominated Advisor to the TechFinancials float, Northland Capital Partners, were looking at a valuation of around the £40m mark. We have recently delved around a broker […]
The Financial Futures Association of Japan (FFAJ) The FFAJ, amongst other activities, provides trading data submitted by its member firms in order to provide an overview of the Japanese binary options market. The FFAJ members at present who submit binary options trade reports are: Planex Trade pulled out of the Japanese binary options market in August after three months of disastrous trading in terms […]
EZTrader: A Leading Broker Since 2008 Longevity is an important metric for the success of any brokerage, but it’s especially important for binary options brokers. Since the client never actually owns the stock, the client has to rely on the broker to track the asset prices and honourably pay out if the client makes a successful call. EZTrader claims to be the first broker […]
OptionWeb Review The Premier Binary Options Broker? OptionWeb has been around since early 2012 and was the first binary options broker to achieve a CySec investment license, license number 175/12. OptionWeb does not accept US customers but has a very broad coverage of the European market with the site being delivered in, apart from English, Dutch, French, German, Italian, Spanish and Russian. The company […]
The StockPair Review StockPair is different: StockPair specialises in bringing to the customer the ability to speculate on the relative performances of two seperate assets, e.g. which asset will perform better. StockPair is a binary options brand operated by Nextrade Worldwide Ltd. The Platform The StockPair platform is an example of a really well-designed, proprietary trading platform; it has been developed by Nextrade and […]
What are Binary Options?
Binary options, also known as digital options or fixed-return options, are fixed-odds financial instruments that allow individuals to bet on the movement of an underlying market asset. The most popular assets traded in the industry include indices, stocks, commodities (i.e. gold and oil) and Forex.
The fixed-returns options industry has become increasingly popular over the last few years because they provide investors a low-cost, low-risk way of betting on the financial markets. Investors in the industry receive fixed-odds returns, which minimises the amount a trader can lose in a single trade. This contrasts with high-risk trading such as Forex and spread betting, which is traded on leverage. Overall, binary trading provides a safer way for beginners to bet on the financial markets.
The payout of these trades is determined by the platform before the trade is executed as a percentage, usually ranging from 70-85%. This determines the size of the return for a winning option.
Types of Binary Bets:
In 2014, binary options brokers offer a greater range of options on their platform with different characteristics and payouts to suit an individual's trading style. This also includes 60-second options, option builder, and weekend options.
High-Low (Call/Put): The most popular binary trade is the high-low option, where an individual can bet on whether an underlying asset will finish above (Call) or below (Put) a certain price in a given period of time. .
One Touch: The one-touch option pays out when the underlying asset hits a certain price at anytime during the trading period.
Tunnel or Range Option: First of all the trader sets up a high boundary and a low boundary for his trade. If the underlying assets stays within these ranges for the entire trading period (without touching the boundaries) then he wins a pay-out. The tunnel bet is essentially a way for traders to bet on the volatility of the market.
Target: In contrast to a tunnel bet, a target bet pays out in the money when the price hits a specific level determined by the individual. He/she can either set a higher target price if he thinks the market is bullish or a lower target price if the market is bearish.
Useful External Resources
- Chicago Board Options Exchange (CBOE)
- Cyprus Securities and Exchange Commission (CySEC) - Responsible for the regulation of most Over the Counter brokers.
BinaryOptions.com is a leading binary options trading, education and news portal, launched in 2011. Our site is run by a dedicated team of professional options traders and has been providing you with advanced trading strategies, articles and news for several years now.
Beginners can choose a broker and find a range of trading articles in our trading education section, while developing traders can check out our trading strategies section. If you are a more advanced or experienced trader, then we have an advanced binary options strategy site under development. We are in the process of removing that content from this site.