Welcome to the world of smart trading! Binary-options.eu is the leading resource of binary trading in Europe. Our goal is to introduce people to digital options trading (also known as smart trading or binary trading) and to help you achieve your financial goals by trading the smart way.
What are binary options?
Video presentation by Nichole Costello
Binary options means two possibilities: up or down. This is why it is called binary. When trading this kind of instruments you try to predict the direction where the asset will go from the moment you buy the option until the moment it expires. If you predict the correct move then you win a fixed amount known as the payout.
Find below a list with the most common terms you will find in digital trading:
Above / Below Options - Those are the most common two-way options, and they can be either 'Call' or 'Put'. You predict that the asset will be above / below the current value at the option expiry.
Call Option - When you think the market will move above the current level you buy a Call Option.
Put Option - When you think the market will move below the current level you buy a Put Option.
Touch Options - Touch Options are a more exotic type of derivative trades. You predict that the asset will touch a certain level at least once before the deadline. The Touch Options can be of two types: Touch Up or Touch Down. They have higher payouts than Above / Below Options, but a smaller probability to succeed.
Touch Up Option - When you think the asset price will touch a higher predefined value than the current one, you buy a Touch Up option.
Touch Down Option - When you think the asset price will touch a lower predefined value than the current one, you buy a Touch Down option.
Option Payout - The payout is the amount of money you will receive when your prediction is correct. If the payout is 170% it means that you will have a 70% return on your investment.
Option Expiry (Deadline) - The moment when the trade expires. All options have a deadline that you will see before purchasing them.
Option Refund - Some brokers offer refunds when the option is not a winner. The refund is usually between 10% and 15%.
How to trade digital options?
To trade digital options you need to open an account with a broker. You can see the top brokers in the list at the right side of our site or by accessing the Binary Options Brokers section of our portal.
For more information on how to profit from this innovative trading style check our binary options strategy section.
Trading derivative instruments can generate high profits in a short period of time but it is also risky. By trading binary options you acknowledge that you are aware of the risks involved, including the possibility of losing the entire investment. Never make speculative trades online with money you can't afford to lose.