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What are Binary Options?

Read more about Binary Options, how to trade on Binary Options and discover a range of tips and strategies.

In the most basic form of binary options trading, traders speculate between two possible outcomes of a security’s value. Unlike other forms of trading, if a security’s price moves in favour of a trader’s prediction and stays that way until the close of the trade, the trader will gain a fixed return regardless of the extent of the price change. In the same way, if a security’s value moves against a trader’s forecasted outcome and remains in that position until the end of the option’s time period, a fixed loss of 100% will ensue. However, there will often be other options also open to traders – such as closing a trade earlier and walking away with a lower profit or loss – as well as the ability for traders to double their trade or extend its length.

The ETX Binary platform gives traders access to a large number of binary products, including Stocks, Indices, Forex Pairs and Commodities.

Binary Options are not regulated by the Financial Conduct Authority

Different types of Binary Options

Different types of Binary Options

Different types of Binary Options

1. High/Low Binary Trading

1. High/Low Binary Trading

High/Low binary trading is the most popular type of binary trading. It is relatively straightforward in its operation; the trader takes a position on whether a security’s price will increase or decrease by a certain expiry date and time. If the outcome aligns with the trader’s prediction, the trade will be successful – if not, it will be unsuccessful. It should again be noted, however, that as previously mentioned, traders will generally have the ability to exit a trade early, but with a consequentially reduced loss or profit level.

2. One Touch Options

2. One Touch Options

WhatareBinaryOptions-01One touch options operate in a slightly different manner. Rather than focusing on whether a trade will end higher or lower, with one touch traders try and calculate whether a product will finish above or below certain levels (established at the start of the trade), with the levels equidistant above and below the value of the product at the trade’s initiation. Traders will ‘call’ if they think that the product will be above that higher level by the trade’s close. Conversely, they will ‘put’ if they believe that the product’s value will have dropped beneath the specified lower level.

3. Short and Long Term Binary Options

3. Short and Long Term Binary Options

ETX Capital clients can select the duration of a binary trade themselves. The ETX Binary platform enables traders to select from a range of option times for different trades, with time periods ranging anywhere from 60 seconds to 30 days.

Binary Options are not regulated by the Financial Conduct Authority

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