basicsBinary option trading is one of the simplest forms of trading. The payout of the option is predetermined at the onset of the contract. Traders who place successful trades receive a set amount of money. The payout range of many brokers today is between 65% and 85%. Some brokers offer payback which is a small refund on a losing trade. Usually the refund is not more than 15% of the total amount that has been invested on the trade. However, traders cannot cash in the option before it expires.

Definition of Underlying Asset

An underlying asset forms the basis of an option which can be traded. This can include a currency pair, inventory, index or a commodity.

What is Call and Put Option?

A call option means the trader has predicted that the price of the asset that he has invested in will go up. The trader will get reimbursed if expiration takes place at the same cost. A put option means the trader has predicted that the price of the asset will move down. The trader gets reimbursed with the expiration takes place at the same cost.

How to Trade Binary Options?

Binary options trading is very easy because there are only two predictions that can be made. The trader can only choose between call and put. To speculate, the trader must open the funding sheet and select the amount of funds that he wants to invest along with the option that he wants to invest on. He can cancel the trade at anytime before the transaction is approved. You may opt using an automated trading system to maximize your profits.

How Much is the Return on Investment?

The percentage or the rate of return is usually displayed on the website for the asset that you have invested on. You will also get a 15% refund if the trade expires out of the money.

What Does Utmost Funding Quantity Mean?

For any single option, the utmost funding quantity is $USD5000 or equivalent. After you have bought an option, you can buy another one or options in greater quantities.

What Does the Levels in the Trading Boxes Mean?

It means that the cost that has been quoted for an asset. The level is not fixed as it may be adjusted depending on the parameters that have been set by the binary options brokers.

Trading with Binary Options Broker

Binary options brokers offer a variety of assets that you can choose from. They can be stocks, indices, currency pairs and commodities. Binary options come with a set expiration time which can range from 60 seconds to end of months. The non binary options markets have fluctuating yields and their expiry times are also lengthier.

What will happen if the level of expiry is the same as the level at which the option was traded? If the price level is the same at the start and end of the trade, then the trader will be reimbursed. For example, if the trader invested $500 on an asset and it expired at the same price level, 500 will be credited back into the trader’s account.

Are the winnings and profits taxable? It depends on the location and country of the trader.

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What Do Expiry Level & Expire Time Mean?

It is the price of the asset when it expires according to Reuters. The expiry level usually indicates whether the trade has expired in or out of the money. The calculation is done wit precision and it is calculated for every tradable asset. The expire time is the date and time at which the option will close. It is up to the trader to choose the expiry time. It can start from 60 seconds and go up to end of the day, end of the week and so on.

When is Binary Option Trading NOT possible?

Trading can only take place during the normal trading hours. The financial markets are open for certain hours during the day in which trading can take place. When the markets are closed, then trading cannot take place. There are also times when due to an event or technical issue, trading may be inaccessible.

How to Choose Binary Broker?

right choiceIn order to start trading online you need to open an account with legit and trusted broker. In this field there are numerous non-regulated brokers, most of them with shady reputation.

Still, we are struggling to find the good ones and provide you with their unbiased reviews and customer feedbacks. Trading binary options is not absolutely free of risk but we can help you minimize it.

By researching the market daily and following the financial news, the team at Top10BinaryStrategy is always up to date with the latest alerts, and upcoming launches of trading systems, and brokers.

We advise you to Open Account with Top Rated Broker OR Choose from Our List.