Here are some common beginners questions that we’ve answered to help all the newbie digital binary option traders. What are Digital Digital Binary Options? Digital Binary Options, or digital binary options, are digital binary options that pay a pre-determined, fixed amount, depending on whether or not a event occurs at the time the option expires. Like traditional digital binary options, digital binary options are based on an underlying asset. For example, you speculate $100 that the gold price will be higher than the current price in one hour from now with a payout of 75%. If you are correct, you will receive $175 (i.e. $100 investment plus 75% profit of $75). On the other hand, if in one hour from now the gold price is lower than the current price, you will keep 15% of you initial investment amount (i.e. $10). Start trading here. Digital Binary Options offer several benefits for traders and investors: Start trading here. You can register online in just a few minutes. To sign up: Is there a registration fee? No. Registration is free.
Will I need to download any software to start trading? No. Our platform is completely web-based so you do not need to download any software in order to trade on Binary Option Trade .com’s Platforms. Trading digital binary options on Binary Option Trade .com’s Platforms is very easy. After logging in to one of our recommended platforms, follow these simple steps: What is the payout for the digital binary options traded? Payouts range from 71 – 75% to 75% for successful trades (digital binary options that expire in-the-money), and a 5 to 15% refund of the investment amount for unsuccessful trades (digital binary options that expire out-of-the-money). For example: Assuming you choose CALL (Above): If the market closes above the price you purchased at expiry, you receive up to 75% payout in addition to your original investment amount. If the market closes below the price you purchased at expiry, you keep 5 – 15% of your original investment amount. If the market closes below the price you purchased at expiry, you receive up to 75% payout in addition to your original investment amount. What is a Call Digital Option? A call digital option is an option that yields a profit for the buyer when the price of the underlying market (the strike price) at the expiry time is higher than the expiry price. A call buyer believes that the price of the underlying market will likely rise by the expiry time. Start trading here. A put digital option is an option that yields a profit to the buyer when the price of the underlying market (the strike price) at the expiry time is lower than the expiry price. A call buyer believes that the price of the underlying market will likely fall by the expiry time. Start trading here. A term to describe a successful option trade, i.e. when the expiry price of the underlying market is above the strike price for a call digital option and below the strike price for a put digital option. For more go to Start trading here. A term to describe a failed option trade, i.e. when the expiry price of the underlying market is below the strike price for a call digital option and above the strike price for a put digital option. Start trading here.
What are the benefits of trading Digital Binary Options?
1. Defined risk and reward – The percentage return is known from the outset, as is what you stand to lose. Therefore, you remain in full control of your risk and do not need to worry about placing stop losses or closely monitoring your positions.
2. Easier, simpler – Digital Binary Options are simpler to understand than other types of trading since you only need a sense of direction, i.e. ‘Will the AUD/USD increase or decrease in an hour?’ and are not concerned with the magnitude of the move.
3. High returns – A winning trade will receive the entire payoff (up to 75% of the investment amount), even if it was ‘right’ by a single tick since you are speculating simply on directional movement.
4. Hedging – A digital option can be used to hedge open positions in other assets such as currencies, commodities and stocks. In this way, using digital binary options can mimize further losses elsewhere.
5. Volatility – Because digital binary options, by their nature, have a high fixed payout, they offer opportunity in otherwise flat markets.
Punctuality – Binary contracts are being issued around the clock, allowing you to trade on multiple time frames. There is always an expiration time arriving, which constantly yields new opportunities.
How do I get started?
Click on the registration link on the top of the home page.
Fill in the requested details.
You will receive a confirmation e-mail at the e-mail address you entered during registration. Clicking on the verification link in the e-mail.
Log in to one of Binary Option Trade .com’s recommended sites:
Any Option .com
One Hour Option .com
Start trading!
How do I trade?
Click on the ‘Trading’ link (most left on the tab menu) and select the market you’d like to trade. You can find the fixed payout for each option in the headline.
Choose the direction: either CALL (Above) or PUT (Below)
Select the amount to invest
Click ‘Trade’ to execute your trade.
Assuming you choose PUT (Below):
If the market closes above the price you purchased at expiry, you keep 5 – 15% of your original investment amount.
What is a Put Digital Option?
What is ‘in-the-money’ expiry?
What is ‘out-of-the-money’ expiry?
What is ‘at-the-money’ expiry?
A term to describe an option trade in which the the expiry price of the underlying market is equal to the strike price. Start trading here.
What is the ‘investment amount’?
The amount of money at stake.
Is there a minimum amount to trade?
No.
Is there a maximum amount to trade?
No.
Can I buy the same option multiple times?
Yes, you can buy the same option as many times as you want at an unlimited cumulative amount subject to having sufficient funds in your account.
Can the digital binary options be liquidated prior to expiration?
No, digital binary options on Binary Option Trade .com’s Platforms are European style digital binary options, meaning they can only be exercised on the expiry time and cannot be liquidated (sold to close) prior to expiration.
Do I need to manage risk?
The deposit required for a digital option on a given market will be equal to the investment amount. Unlike other derivatives, digital binary options are not a leveraged product. This means that digital binary options cannot result in losses that exceed your initial deposit. Therefore, you do not need to worry about managing risk by closely monitoring your open positions or using stop orders.
Do the digital binary options result in the delivery of the underlying asset?
No, digital binary options are cash-settled and cannot result in the delivery of the underlying asset.
What markets are currently traded on Binary Option Trade .com’s Platforms?
Forex Currency Pairs:
EUR/USD
GBP/USD
USD/CHF
USD/JPY
USD/CAD
AUD/USD
US-listed Stocks:
Apple (Symbol:AAPL)
Cicso (Symbol:CSCO)
Citibank (Symbol:C)
Google (Symbol:GOOG)
Microsoft (Symbol:MSFT)
Yahoo! (Symbol:YHOO)
NewsCorp (Symbol:NWS)
And more …
Precious Metals:
Gold (XAU)
Silver (XAG)
And more …
What are Binary Option Trade .com Binary Digital Option Platform trading hours?
Since Binary Option Trade .com’s digital option platforms are based on securities traded on Stock and Commodity Exchanges and the Foreign Exchange Market, Binary Option Trade .com’s digital binary option platforms can be traded only during the hours in which those securities are traded. Trades will not be accepted for the last 10 minutes of each one-hour period.
What is the ‘current price’ shown for each underlying market?
Each price reflects the real-time price of the underlying market.
What is the ’strike price’?
The strike price is the price of the underlying market when the digital option is purchased.
What is the ‘expiry price’?
The expiry price is the price of the underlying market at the time of expiry of the digital option. Start trading here.
What happens if the expiry price is identical to the strike price
?
In such a scenario the expiry will be ‘at-the-money‘ and the investment amount will be returned to the investor in full. For example, if you bought a $100 ‘call digital option’ on Google stocks at a strike price of 305.5 and the expiry price was 305.5, the full investment amount is returned to you, and your account will be credited with $100.
What is the ‘expiry time’?
The expiry time is the time and date at which an option expires.
What is the time zone of the expiry time?
The site’s trading hours and expiry time are shown according to your PC’s time zone.
Do you charge any fees?
No, unlike other online trading providers, Binary Option Trade .com does not charge you fees, nor do the digital binary option platforms we recommend.
Are the profits from trading in digital binary options taxable?
Customers should seek their own tax advice regarding the income tax consequences of trading in digital binary options in their country of residence.
Thanks to marketpunter for all their advice.
