Binary Options/CFD Trading Guide

What are Binary Options/CFD?

A binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all.

CFDs – contracts for difference, CFDs are a derivative product that a trader can trade on the difference between the prices on these assets.

Another benefit to Binary Options is that anyone can participate with just a small initial investment.

Binary options "are based on a simple 'yes' or 'no' proposition: Will an underlying asset be above a certain price at a certain time?"[22] Traders place wagers as to whether that will or will not happen. If a customer believes the price of an underlying asset will be above a certain price at a set time, the trader buys the binary option, but if he or she believes it will be below that price, they sell the option. In the U.S. exchanges, the price of a binary is always under $100

While this can generate profits more rapidly, it can also lead to losses more rapidly and if the traders account is small they may soon find themselves the victim of a margin call and the loss of all their trading capital.

Trading on FX or CFD’s – This nature of trading can be risky and we recommend that our traders will make sure that they fully understand the commitment needed for trading.

In the online binary options industry, where the contracts are sold by a broker to a customer in an OTC manner, a different option pricing model is used. Brokers sell binary options at a fixed price (e.g., $100) and offer some fixed percentage return in case of in-the-money settlement. Some brokers, also offer a sort of out-of-money reward to a losing customer. For example, with a win reward of 80%, out-of-money reward of 5%, and the option price of $100, two scenarios are possible. In-the-money settlement pays back the option price of $100 and the reward of $80. In case of loss, the option price is not returned but the out-of-money reward of $5 is granted to the customer

 

Why Trade Binary?

Binary presents an extremely fast-moving and potentially lucrative opportunity for FX investors around the world. Trade our FX/CFD platform for a number of reasons.

 

Trade our FX/CFD platform for a number of reasons:

• The binary market is decentralized in essence, with no one country, government, institution, company or other body able to fully control it. All market participants can exploit the same opportunities and are guaranteed fair pricing and access to the same financial information.
• Binary options/CFD trading enables you to buy or sell, taking advantage of market shifts in either direction.
• On the binary market, you can trade at your convenience, 24 hours a day. Benefit from currency movements in countries from every corner of the map according to local market opening hours.
• When trading binary/CFD you can use leverage, which enables you to increase the revenue from your initial investment if the position is in profit.

 

Trade binary/CFD with Trust crypto options to Benefit from:

• Trust crypto options’s exclusive binary offering, with its unique user interface, enables you to transition between binary and our other products at a click, all using a single wallet.
• A user-friendly UI – completely accessible and intuitive.
• Controlled risk- set exposure limits per trade with Stop Loss and Take Profit activated by default.
• Multiple trading tools – advanced in-window charts and technical indicators.
• No negative balance- never lose more than you have in your account.
• Attractive trading terms- tight spreads, flexible leverage (default leverage is 1:50) and no margins.
• Exclusive educational resources- videos, eBooks, personal training, webinars etc.
• Each trade is stand-alone- no single trade will impact any other open position.