What are Binary options


Binary Options are another type of Contract for Difference (CFD). Their main standout feature, separating them from regular CFDs, concerns their loss potential – with binary options you cannot lose more than you invest.


The word ‘binary’ means ‘composed of two pieces’ and in its most basic form, binary options trading means just that – it’s a trading format that works via a choice of two different options; although in practice someone trading binary options will have the ability to make further choices regarding the outcome of their trade.

How ETX Binary Options Work

How ETX Binary Options Work

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How ETX Binary Options Work

In general, spread betting and CFD profits or losses are calculated based on the extent that a product appreciates or depreciates in price, with the amount gained or lost depending on the scale of the change in the products’ worth. Binary options are a form of Contract for Difference (CFD) where the profit or loss is generally determined by the general direction of the product rather than a specific amount of movement; although the Binary options offered by ETX also carry features that give many more outcomes for the trader. In the aptly named high/low format, winning or losing is determined by whether the product finishes higher or lower at the time of a trade’s expiration than its level at the initiation point of the trade. Similarly, with the ‘pairs’ format the result depends on which one of two available options finishes higher than the other. However, it is also possible for a binary trader to exit a trade early, resulting in either a smaller profit or loss than they otherwise would have been left with.

Global Binary Options

Global Binary Options

Global Binary Options

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Binary options trading has enjoyed significant global expansion in recent years, and nowhere more so than in the USA. In 2008 a landmark decision by the SEC deemed binary options to be a legal trading format, meaning that in theory binary trading, unlike spread betting and CFDs, is permitted to US citizens. However, in practice firms offering binary trading to US citizens need to be registered with the SEC, meaning that a large number of binary firms – including ETX Capital - do not offer services to potential customers from the United States. However, apart from the US, citizens of most countries are able to open up a binary account with ETX Capital.

 

If you are unsure of your eligibility to open a binary trading account with ETX Capital, please do contact us by phone on +44 (0) 20 7392 1486 or by e-mail at newaccounts@etxcapital.co.uk for more information.

Binary Options Trading with ETX Capital

Binary Options Trading with ETX Capital

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Binary Options Trading with ETX Capital

ETX Capital operates a platform specifically dedicated to binary trading - ETX Binary. Trade the future with day-long binary positions, or focus on the here and now with options of just sixty seconds in length. Select from a significant range of FX Currency Pairs, Commodities, Stock Indexes and Equities in High/Low, One-Touch, Long-Term and Short-Term binary formats. Enjoy potential payouts of between 65%-100% for winning trades – though keep in mind that losing trades will result in a 100% loss of the money placed in the trade. Find out more about the ETX Binary platform by taking a look at the ETX Binary page.


Binary Options are not regulated by the Financial Conduct Authority

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