1Select the asset you want to trade
2Click on “CALL” if you think the price will rise above the current rate at the time of expiry, or click “PUT” if you think the price will fall below the current rate at the time of expiry
3Enter the amount you would like to invest and "Apply"
4Get up to maximum 85% profit.
Binary options, also known as Digital Options, all-or-nothing options, or Fixed Return Options (FROs), have been available since the middle of 2008 and are simple for any trader - novice or expert- to understand.
The Binary Option is in essence nothing more than a prediction on which way the price of a stock, commodity, index or foreign currency will move by a designated expiration time. With Binary Options, you never purchases or own the asset as you’re only predicting the direction that the asset will go. There are only two possible outcomes and the price of the asset does not matter. As far as you’re concerned, all that matters is if your prediction was correct or incorrect.
Through the PIToption platform, you simply:
1. Choose the asset you want to trade
3. Wait for outcome
4. Collect your profit
Binary options fall under the umbrella of exotic options but within financial markets they are often referred to as digital options. While digital options are very simple to understand and easily traded, the calculations behind the pricing is sophisticated and so they are considered exotic options.
Binary options in Global Financial Markets
Digital options are usually traded OTC (over the counter) across all assets in financial markets but more commonly used within the Forex and Interest markets. Recently numerous stock exchanges have produced listed digital options on selected stocks, commonly known as FRO (fixed return options). Today the CBOE offers fixed return options on S&P500 and VIX, also 20 stocks were listed on the AMEX in 2008.
Advantages of Trading Binary Options
Simplicity – You only need a sense of direction i.e. ‘Will Google stock price increase/decrease by expiry?’
Controlled Risk – The percentage reward is known from the onset, as is what you stand to lose
Attractiveness - For a profitable trade to take place there is only the need for the price to close in-the-money and the winning trade will receive the entire payoff, even if was ‘right’ by a single pip.
Hedging opportunities – A safer option to take if a trader has an open position elsewhere in currency, stocks etc. Utilizing a binary option can eliminate a further loss elsewhere.
Punctuality – Binary contracts are being issued around the clock, allowing traders to trade on multiple time frames. There is always an expiration time arriving, which constantly yields new opportunities for binary traders.
To start trading Binary Options today, click here to open an Account