What is a Binary Option?

Also called a fixed-return option, or a digital option, a binary option is where the payout is predetermined at the beginning of the contract. An expired option pays the determined amount. Binary option brokers offer a 65 to 85-percent payout with a 15% return.

How Do I Place a Trade?

Placing a trade requires selecting "call" and "put" options for underlying assets. Selections vary among binary option brokers. Each selection is canceled by clicking on "X" or the "cancel" button before the transaction is approved.

What is a Put Option?

This provides any holder with remaining profit once an underlying asset depreciates. If the option expires at the same price, the amount of the original investment is returned to the investor.

What is a Call Option?

This option leaves the holder with the profits of an underlying asset that increases in price as compared to the original purchase level. If the option expires at the same price, the original amount is returned to the investor.

What Return will I get for any Successful Investment?

When the option expires out-of-the-money, you will typically see a 15% refund on your total investment amount. Always check with your current binary option broker before placing any trades.

Exactly what return will I get in the event that the option expires Out-Of-The-Money?

If the option expires out-of-the-money, broker accounts are credited at 15% of the initial investment amount. 50. We advise all clients to choose a broker that provides at least a 15% return on all out-of-money binary trades.

What is the Investment Amount?

This is the total amount of money invested in the option.

What is the Expiry Level?

According to Reuters, this is the total price level of any underlying asset at the time of expiration. In a nutshell, this is level determines whether or not the option has expired in-the-money or out-of-the-money.

What is the Expiry Time?

The time and date when your specific option expires.

What is the Time Zone of the Expiry Time?

The site's investing hours and expiration dates are shown according to your PC, laptop's or mobile device's local time zone.

Why can’t I Trade Binary Options All Day?

All assets are only available during standard market buying hours. In some rare cases, investments are not visible or available due to technical reasons. However, these issues are usually resolved in a timely manner. The only other reason you wouldn't be able to trade is if you had insufficient funds in your account.

What is the Maximum Investment Amount?

The maximum investment for a single option is 3,000 USD, or the equivalent amount in foreign currencies. However, you can purchase multiple options, one at a time. To purchase larger amounts, you must purchase an option at 3,000 USD, and purchase additional options.

Are the Profits Taxable?

Tax liabilities are your own responsibility. This is largely based on your country of residence. Tax liabilities vary greatly from country to country. Check with your binary broker for additional details to determine how to report any tax liability from trading.

What is an All Or Nothing Options?

Some commercial traders and banks can price personalized binary options. The individual o legal entity will either receive an agreed upon return, or lose the entirety of the investment.