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  • 28th May 2015
WHAT IS A BINARY OPTION

Option Trading Tutorial

SIMPLE. QUICK. PROFITABLE.

Binary Options, also known as Digital Options, all-or-nothing options, or Fixed Return Options (FROs), have been available since the middle of 2008 and are simple for any trader - novice or expert- to understand.

The Binary Option  is in essence nothing more than a prediction  on which way the price of a stock, commodity,  index or foreign currency will move by a designated expiration time. You never purchase or own the asset as you’re only predicting the direction that the asset will go.  There are only two possible outcomes and the price of the asset does not matter.  As far as you’re concerned, all that matters is if your  prediction was correct or incorrect.   


Through the TraderXP platform, you simply:


1.  Choose the asset you want to trade

2.  Click on “Call” if you believe the asset price will rise by the expiry time, or “Put” if you believe that the price will fall

3.  Wait for outcome

4.  Collect your profit

Binary Options in Global Financial Markets

Binary options fall under the umbrella of exotic options but within financial markets they are often referred to as digital options. While digital options are very simple to understand and easily traded, the calculations behind the pricing is sophisticated and so they are considered exotic options.


Digital options are usually traded OTC (over the counter) across all assets in financial markets but more commonly used within the Forex and Interest markets. Recently numerous stock exchanges have produced listed digital options on selected stocks, commonly known as FRO (fixed return options). Today the CBOE offers fixed return options on S&P500 and VIX, also 20 stocks were listed on the AMEX in 2008.

   
   

Advantages of Trading With TraderXP


Advantages of Trading Binary Options  Controlled Risk – The percentage reward is known from the onset, as is what you      stand to lose.


  Simplicity – You only need a sense of direction i.e. ‘Will Google stock price   increase/decrease by expiry?’

  Attractiveness -  For a profitable trade to take place there is only the need for the price to   close in-the-money and the winning trade will receive the entire payoff, even if was ‘right’  by a single pip.

Hedging opportunities – A safer option to take if a trader has an open position elsewhere in currency, stocks etc. Utilizing a binary option can eliminate a further loss elsewhere.

Punctuality – Binary contracts are being issued around the clock, allowing traders to trade on multiple time frames. There is always an expiration time arriving, which constantly yields new opportunities for binary traders.

Option Trading Tutorial – TraderXP provides you with everything you need to learn to trade. Taking into consideration that there are many binary options trading strategies available on the market we suggest trying several different options trading strategies before committing to one. Learn to trade correctly with one of our tutorials and trade options with success. 

To start trading today, click here to open an Account



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How to Trade
  • Binary Options
  • One Touch
  • 1)
    Choose from our wide variety of assets.
  • 2)
    Simply press the “CALL” button if you believe that the value will exceed the listed price at expiration, or press the “PUT” button if you feel that the value will decline below the listed price at expiration.
  • 3)
    Insert your initial investment sum and press the "Apply" button.
  • 4)

    Make the chosen profit on your investment.

 

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The services offered herein are not being made to, nor will trading be accepted from or on behalf of, users in any jurisdiction in which the making or acceptance thereof would not be in compliance with the laws of such jurisdiction. Therefore, American residents are not permitted to trade binary options (other than on individual assets) through this website. American residents will be directed to trading options on individual securities only. You agree that you will promptly notify TraderXP at any time when you become a U.S. resident, and you agree that in such event TraderXP shall be entitled to either terminate your account or to redirect you to trading options on individual securities only.
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