Binary Options
Binary options or digital options are a new investment type that has only two possible outcomes, win or lose.
Payout and Refund Rate
This is the most important factor when trading binaries. The payout rate defines the profit potential if your forecast is right. Usually payouts are between 67% and 90%. The most popular assets enjoy better payouts. The best payouts are found in EUR/USD and in Gold Trading. The Refund Rate refers to a compensation amount if the trade is lost. Usually refund rates when trading binary options are between 5% and 15%.
Binary Option Types
There are many different types of binary options, here are the two major types:
Up & Down Options
It is the simpler and the most popular way to trade binary options. Choose an asset and a price direction (Up or Down) and if you are right, you win.
One-Touch Options
One-Touch binary options are contracts that win if the price of the underlying asset reaches a pre-defined price level.
Advantages of Binary Options Trading
Here are some advantages you enjoy when you are trading binary options.
1) You may choose from an extensive asset index including sometimes more than 100 assets.
2) Your Loss Potential is predefined and known. When trading binary options you can be sure about how much you can lose. The maximum loss is limited to the initial investment and there are no margin calls.
3) The Minimum Deposit Amount Needed is usually small. Most binary options brokers have low deposit requirements. You may open a real account with just 100 USD.
4) High Bonuses. Binary Options Brokers offer high deposit bonuses nowadays. The deposit bonus can be up to 100%.
5) Trading Binary Options is simple and you don’t have to be a market guru to trade.
6) Binary Options are offering direct access to real-time financial markets data.
Assets that can be Traded using Binary Options
There are hundreds of different assets that you may trade using Binary Options.
1) The Forex Market / Fx Currencies
Choose between majors, minors and exotic currency pairs. Usually, binary options brokers are offering more than 30 Forex pairs.
2) Commodities
Commodity trading is very popular for binary options traders. Usually, the most traded assets are Gold and Oil. Recently many brokers have started to offer more commodities such as Sugar and Coffee.
4) Stock indices
Many popular stock indices are offered like Dow Jones, NASDAQ, and S&P500 (US), FTSE100 (UK), DAX (Germany), CAC40 (France), Strait Times (Singapore), Nikkei (Japan) and Hang Seng (Hong Kong).
5) World Stocks
There are many stock traders around the world and Binary Options may cover their needs. Popular stocks like Google, Apple and Facebook are offered almost by any binary options broker today.
Binary Option Bonus & Account
Binary Options Brokers are offering today high bonus policies to attract new traders. Usually, a deposit bonus can be up to 50%, but from time to time, you may find even 100% deposit bonuses. The minimum account is usually $100-$200 but sometimes reaches $500. All popular fund methods are usually supported (Debit/Credit Cards, Bank Wire, Paypal, MoneyBookers and Liberty Reserves).
■ OnlineForex.biz
