Forex for a trader
What is forex binary options

What is forex binary optionsBinary Options Vs. Forex. Binary options trading has long existed over-the-counter, only experiencing a massive growth spurt in the last few years. Now, approximately 90 companies (including those who white label their products) offer some sort of binary options trading service. So okay, it’s a growing industry… But why should you involve yourself in it? There are many advantages and disadvantages to both binary options and spot forex. One of the great things about binary options trading is that you always know the exact maximum gain or loss in advance. The trader controls the premium at risk to enter the binary option trade, and that is the only amount that can absolutely be lost. Most binary option brokers even allow you to cut your max loss by “folding” your trades ahead of expiration after certain types of trade conditions have been met. In contrast, with spot forex, even with a stop loss order set, you cannot be 100% certain that you will lose only the pre-calculated amount that you risked. While improbable, there’s always the chance that certain issues may affect your final max risk like slippage, lack of liquidity to execute a stop order at the desired price, a broker’s trading platform goes down, etc. Trade Management Flexibility and Maximizing Reward. Aside from HighLow options, many of the binary option plays are only available at certain times of the day or week, and most times the strike prices are set by the broker. With spot forex, you are able to enter limit orders for any price or execute a market order at any time during open market hours.

In terms of exiting open trades, some binary options brokers allow you to close options trades early, but usually only after a predetermined amount of time has pass after the option trade has opened and before it closes. And as mentioned before, the value that is returned to the trader is based on whether the market is in-the-money or out-of-the-money and of course, with a piece going to the broker. In spot forex, you can close your trade at any time (except on weekends with most brokers). Even if it’s one second into the trade, you can get out and book profits or reduce losses. Finally, if you think there’s going to be a long trend and you want to maximize your profit on it by holding it as long as possible, you can do so in the spot market using scaling in and trailing stop techniques. With a binary option, the expiration date and cap on profits limits you; you’re out of the trade as soon as you close or the option expires. Depending on your risk and trade management preferences, either trading instrument can be good or bad depending on how much time you want to spend in front of your trading platform, how active you want to be, or what you expect the market may do. In binary options trading, there are no additional transaction costs other than what is normally factored into the final payout. In spot forex, the transaction cost comes in the form of a spread, a commission, or both. We’ve already discussed this in a previous chapter, but feel free to revisit the lesson and read up on it again. Another great thing about binary options trading is that you aren’t limited to just currency pairs like with most retail forex brokers. While currency pairs are the most common assets you can trade, with some binary options brokers, you may also have the opportunity to trade your ideas on a limited number of individual stocks, stock indices, and even commodities.

Surprise volatility is not usually an issue in binary options trading. Any trade you take can weather the volatility caused by certain events. The max risk is still set, but so is the max reward. In spot forex, however, sharp swings can affect the value of a position greatly and very quickly, which makes the additional task of setting up proper risk management processes very important. The margin for error when entering a trade is very small in binary options trading. This is due to the fact there are only two actions to take with binary options: open and close. There are no limit orders to keep track of, or to close or adjust. In spot forex, an inattentive trader may forget to place exit andor adjustment orders, potentially creating a loss greater than heshe intends. Forex Versus Binary Options. The rising popularity of online trading has mostly been centered in the Forex and binary options markets .

So, many new traders find themselves interested in both but not sure which is better suited to their trading style and investment goals. This information can also be helpful for traders looking to make the transition from one market to the other , as there is a certain amount of readjustment that must be undertaken in order to successfully make the transition. Since changing from one market to another can lead to potentially costly mistakes, it makes sense to look at a comparison of both in order to determine which market is mostly likely to lead to consistent returns for your individual financial approach. Here, we will look at some of the pros and cons of the binary and Forex markets as they relate to Risk Management, Trading Accessibility, and Potential Profitability. One of the most critical factors when comparing the Forex and binary options markets can be seen with the differences in risk management. Most experts will agree that Forex is far riskier than trades with binaries because a contract will always have a guaranteed loss level (which cannot be expanded). In addition to this, the Forex market is typically marked by high leverage, which enhances the possibility of larger gains and losses. For new traders, it is much more common for the risk side to win out when using leverage, so the smaller number of enhanced gains still tends to result in depleted trading accounts. Binary options are an “all or nothing” proposition, but some binary options brokers will refund up to 20% of the capital invested when trades expire out of the money. Another benefit of binary trading is the “rollover” function, which also aids traders in risk management. Rollover allows traders to extend the expiration time of a position that has not yet turned profitable. This, along with the early closure function (enabling traders to close profitable trades before expiration), offers greater flexibility for options positions. Trading Accessibility.

Another advantage of the binary market is that it is not as complicated to place trades. The process is generally taken in four steps, with each piece of information entered into a dialog box. This includes: selecting your asset and strike price, selecting your position size (in Dollar terms), selecting the contract expiration, and confirming the trade. In Forex trading, the process is not always this easy. Here, traders must calculate stop and limit orders, position lot sizes, in addition to the asset type and price entry level. ECN Forex platforms are even more complex, and this complicated trading requirement might be intimidating for new traders. It can be very easy to make a mistake and when this is done with a live account , the results can be costly. With binary options, you will choose between two orders. When trading Forex, you can have as many as 7 or 8 orders to deal with when constructing a single trade. Balancing Risks and Rewards. Binary options have a unique payout structure, and this allows traders to achieve a risk to reward ratio that is much more favorable and put in place automatically when positions are opened. Trades differ from Forex because you know exactly what you stand to earn or lose from before your position is live. This poses a stark contrast with Forex trades, where wins and losses are variable and the outcome is much more difficult to predict.

In Forex, the trader is responsible for all of the potential profit and loss calculations, and this makes it easier to make mistakes which could negatively affect your trading account. Additionally, binaries allow you to easily open multiple trades in the same day. This is difficult in Forex because there is no way to know exactly how long a Forex trade will be open. But, with options, your trading timeframes are clear from the beginning . So, if you enter into an hourly trade, you could easily open and close many trades within a single day. Risk Protection Not Seen in Forex Markets. As the trading environment changes, it is becoming clear that brokers are adapting to cater to the needs of retail traders online. Account sizes are flexible and option contract periods vary from 60 Seconds to 1 month in duration. For traders looking to minimize their risks (and to be completely clear about the potential losses that can be undertaken in any position), options markets offer some guarantees that are simply not seen in the Forex arena. For these reasons, options offer some attractive features that many new traders will view as preferable when compared to Forex. ***Your capital may be at risk. This material is not investment advice.*** Binary Options vs Forex.

Binary Options have become widely popular during the last two years. The main reasons for this, is that they offer high profit returns and they are easy to trade. In this article I will try to outline the main differences between Binary Options and Forex, so that you can evaluate which is the better trading method for you. A good way to start is to provide definitions of both and look at an example of a trade. Guest post by Peter Traychev of ActionBinary. com. After you read this article, please share your views with us! We encourage you to use the comment box at the bottom of this page. Forex definition : When trading Forex you are speculating that the value of one currency will increase or decrease compared to another, in an attempt to make a profit. For example: The current price of EURUSD is 1.30850 and you think the price will increase in the future. You buy 1 lot of EURUSD and wait for the price to increase to the point where you want to close the trade and realize the profit you want. Binary Options definition : When trading Binary Options you only have to predict if the price of an asset (for example currency pair or stock) will increase or decrease from its current price over a certain period of time. For example: The current price of EURUSD is 1.30850 and you think the price will be higher in the next hour. So you place a “Call” option on EURUSD and wait to see its price 1 hour from now. If your prediction is right you can make a profit of 80% of your investment.

Margin. Forex : You can use margin to trade Forex. The maximum margin is determined by each broker, and sometimes can be up to 1:200 or 1:500. Margin allows you to increase your investment capital so you can make a larger trade and make a larger profit if your trade is a winning one. Binary Options : Margin is not used when trading Binary Options. You can still make a large return on your investment (up to 80% or sometimes 400%), so Binary Options are still very attractive for traders. The good news is that you can never get a margin call. Payouts and Losses. Forex : With Forex you never know what is the maximum profit you can make on a trade. You can set a limit or stop order so that you can be guaranteed a certain percentage profit if the limit or stop is executed. The losses in Forex can be managed with limitstop orders, the same way profits are managed.

The maximum loss with Forex may be all of the money in your trading account. Binary Options : Before you make your trade you will know exactly what is the payout and loss return percentage that you will get for the particular option, when it expires. Some brokers offer payouts up to 80% or sometimes 400% depending on the option traded. This means that if you invest $500 on an option and the payout is 80%, you will make $400 profit if the option is a winning one. Some brokers don’t offer “loss back”, which means that if your option trade is a losing one, you will lose the amount you invested in the trade, but not more. Closing a position. Forex : You choose when to close the position. You can close your position anytime the market is open and the broker has to accept and execute the order. Binary Options : Before you make your trade you have to select when you want the option to expire (example: 1 hour or 1 week from now) – at the “expiry time” your trade will close automatically. The broker offers you different types of options with predetermined expiry times. Some brokers allow you to close your trade early, but you will exit your option at a percentage of the expected return. The “ early closure” option is not offered by all brokers, and might not be available during the whole time the trade is active. Another important point to mention is that some brokers allow traders to delay the expiry time, to the next expiry time.

This is called “Rollover” and the traders will need to increase their investment by a certain percentage, sometimes 30% in order to be able to do this. Orders Types. Forex : There are a variety of order types in Forex. The most important ones are the market (BuySell) orders. Also there are more advanced orders such as: Limit, Stop, OCO (One Cancels the Other), Trailing Stop, Hedge orders, and others. Binary Options : There are about five Binary Options types which you can trade. They include: HighLow (also referred to as: CallPut or UpDown), 60 Seconds Options, TouchNo Touch Options, Boundary Options, and Option Builder. Trade size. Forex : Some brokers allow you to trade micro lots, which is 1,000 units of the base currency in a Forex trade. The maximum trading amount is determined by each broker, and can be up as high as 100 standard lots or $10,000,000. Binary Options : Each Binary Options broker determines what is the minimum and maximum trading size for its clients.

Sometimes the minimum trading amount can be as low as $5 per trade, and the maximum can be up to $1,000 or $5,000 or more. Trading costs. Forex : When trading Forex you have to consider what are the spreads and rolloverswap, and if there are any commissions. Binary Options : There are no spreads, rolloverswap or commissions when trading Binary Options. What are Binary Options? Binary options are short-term financial instruments based on a simple yesno question. A Binary Option Has Three Components: 1. Underlying Market A binary option’s price is based on an underlying market. That market could be a stock index future, a commodity like gold or crude oil, a forex pair like the EURUSD, or even an economic event like the weekly jobless claims number. 2. Strike Price Each binary contract has its own strike price, which is the price level you think the market will be above or below at expiration. 3. Expiration Date and Time The expiration date and time is when trading on the binary option stops. If you are still holding a position at expiration, you will either receive the full $100 payout or nothing. Market, Strike Price, Expiration Time. A binary option contract in gold might be called: Gold (Aug) > 1250.00 (4:15PM) The underlying market is August gold futures (traded on the CME) The strike price is $1250.00ounce The expiration time is 4:15PM today.

If the price of August gold futures is above 1250 at 4:15PM, the buyer of this binary option receives $100 and the seller will get zero. If gold futures are at or below 1250, the seller gets $100 and the buyer gets nothing. How Do Binary Options Work? Binary options focus each trade on a simple yesno question. All binary options are based on the same kind of yesno question about an underlying market: Will the price of gold futures be above 1250 at 4:15PM? Yes or no? Will the Dow Jones stock index be above 24,000 at 1PM? Yes or no? Will the EURUSD exchange rate be above 1.1500 at 4:15PM Friday? Yes or no? If you think the answer is yes, you buy the binary option. If you think the answer is no, you sell the binary option. At the expiration time, whoever is correct, buyer or seller, will get the full $100 value of the option. The other trader will get zero.

However, before expiration, the price of the binary option will go up and down as traders react to the movement of prices in the underlying market. During that time before expiration, you can buy and sell the binary the same way you’d trade any other instrument: buy low, sell high. Binary options let you trade a world of markets. The simple, flexible design of binary options makes them suitable for many markets, including stock index and commodity futures, forex pairs, and even economic numbers like the weekly jobless claims or the Fed interest rate. You can trade all of those asset classes from a single account and combine them in whatever strategies you can imagine. Think the Fed will raise rates and strengthen the US dollar? Buy a weekly binary on the Fed Funds and sell the EURUSD. You can use binary options on stock indices to hedge against fluctuations in your stock portfolio. Or explore gold, crude oil, and other commodity trading in a way that is low-cost with capped risk.

Binary options offer unique trading advantages. Binary options are an affordable way to learn to trade. Start with one binary option contract at a time for less than $100. With binaries, you decide your maximum risk and reward up front. If you buy a binary for $30, hoping to have it expire at $100, then your risk is 30 and your profit target is 70. That makes risk management dead simple. You can’t lose more than $30 (plus the $1 fee) even if the underlying market crashes. And because you have a built-in profit target, you can plan your exit strategy with confidence. You can hold it until expiration or exit early. For example, if you bought a binary for $30 and it goes up to $70, you can place an order to collect your $40 profit now, rather than wait until expiration. Similarly, if you sold at 50 and the binary option is now worth 80, you can exit early with that $30 loss rather than face the possibility of a $50 loss at expiration. Binary options on a CFTC-regulated, US-based exchange like Nadex can be a powerful, trustworthy way to add day trading, swing trading, and even scalping strategies to your portfolio. Example: Trading forex using binary options. Will the current EURUSD exchange rate be greater than 1.1600 at 3AM ET? Let’s say you want to trade the EURUSD > 1.1600 binary option which has four hours left until expiration. It’s currently 11PM. (On Nadex, you can trade 23 hours, Sunday through Friday.) So your trade is based on the above question.

Let’s say you are bullish and you think the answer is yes, the EURUSD rate is going to be above $1.16 at 3AM. You would then buy the binary. You might buy the binary in several scenarios. The EURUSD might already be above $1.16 and you think it will stay there. It might be in an uptrend and even though it’s currently at $1.15, you expect it to go up. Or, you might have some other investment which is affected by a strong euro and you might want to hedge against a rate increase. Binary options are useful in a variety of trading strategies. The final outcome will be determined at expiration: If the market is at or below 1.1600 at 3AM ET (the expiration time), the seller will get the $100 payout. But if the market is even one tick above 1.1600, you, the buyer, get the full payout. That is the all-or-nothing outcome at expiration. And again, if you don't want to wait until expiration, you can exit your position at the current market price. Your profit or loss in that case is the difference between your entry and exit prices. Experience a different way to trade. Or try it risk-free with a full-featured demo account. A different (maybe better) way to trade forex. What is forex trading? Currency or forex is the world’s largest market, with $3-5 trillion traded daily.

And it’s not for big banks and funds anymore. Individual traders want the opportunity of this highly liquid and tradeable asset class. In simple terms, forex or currency traders buy and sell one form of money with another form of money. A simple example is when you buy euros in exchange for US dollars at an airport kiosk when traveling. You can use a number of different forex trading strategies. You might short-sell the EURUSD forex pair in the spot forex market. You could also trade futures contracts on the euro. Recently, many traders are choosing a new way to trade forex: binary options and spreads on Nadex, a CFTC-regulated exchange based in the US. They are flexible and powerful enough to use in almost any forex trading strategy. What is currency trading? Currency is any form of money issued by a government and circulated within an economy. Currency is basic to trade; we use money to buy and sell goods and services.

The word “currency” refers to its circulation. Recently, digital currencies like Bitcoin have emerged which are not backed by any national government, but rely on technology like Blockchain to ensure value. (You can also trade the price of Bitcoin on Nadex.) Most countries have their own currency. Switzerland's official currency is the Swiss franc; Japan's is the yen. The euro is the currency for all the member states of the European Union. Some countries even use a foreign currency as legal tender. Before you trade, make sure to look over the forex contract specifications to see trading hours and other details. What forex pairs can you trade on Nadex? Nadex forex contracts are based on the current exchange rate, known as the spot forex rate . You can trade binary options and option spreads on 10 forex pairs: New forex trading strategies.

Forex market trading offers tremendous opportunity. The market is open around the clock, five days a week. It is highly liquid and constantly in motion. And because exchange rates reflect key macroeconomic factors like central bank actions, trade balances, and GDP, forex trading can be a great way to take trading positions based on your economic knowledge and intuition. (By the way, you can also trade economic numbers like the Fed rate and nonfarm payroll alongside your forex trades, to hedge or execute a multi-asset strategy.) Plus, you get to trade alongside major banks, sovereign wealth funds, and other big institutions. For many traders, it can be both lucrative and enjoyable. The downside? Conventional forex trading is leveraged and over the counter. Leveraged means that you only put up a fraction of the amount you are trading and you effectively get a temporary loan for the rest. You can buy more than the amount you put up. However, if the currency pair you’re buying goes down, that leverage also increases your losses.

Over the counter means there is no central exchange for forex. Trades are done between traders or, most of the time, between brokers or dealers—who charge a commission and may not be well regulated. How to trade forex on Nadex: Instead of leveraged, all Nadex contracts are fully collateralized. If you paid $40 per binary option, then your maximum possible loss is $40. You can’t lose more than you paid up front. That’s why Nadex never has to issue margin calls. This relatively low risk exposure and cost of entry (compared to other forex trading venues) makes Nadex a great place to learn how to trade forex . Nadex is an exchange, not a broker. We’re regulated by the CFTC and located in Chicago. We are designed to create a level playing field for individual traders, with secure transactions and full transparency. And instead of broker commissions, you pay a fixed fee of $1 per contract side. Check out the forex trading example below! Example: Short-selling the Aussie-Yen forex pair in 3 steps with binary options. If you’re a forex insider, you may have heard of the yen “carry trade,” in which investors borrow Japanese yen and then exchange those yen for another currency like the Australian dollar, which they use to buy high-yield bonds. They pay a low interest rate to borrow the yen and earn a higher interest rate in the Aussies and keep the difference as profit. As you can imagine, it’s a popular trade, especially when exchange rates are stable.

When rates fluctuate, the risk goes up for the carry trade, but for trend traders it can be a great opportunity. Trading binary options on the AUDJPY is a way to trade those fluctuations, whether the trend is up or down. How to trade this forex opportunity? To show how simple it is to short forex on Nadex, let’s look at how to sell a binary option on the AUDJPY. Let’s say the binary option contract. AUDJPY > 81.00 (7PM) has four hours left until expiration. It’s currently 3PM. (You can trade 23 hours Sunday through Friday on Nadex.) Every binary option has a strike price. In this case, the strike price is 81.00. The expiration value of the binary is decided based on whether the market price is above the strike price or not. In other words, the binary option is based on this question: Will the AUDJPY exchange rate be above 81.00 at 7PM? For this example, let’s say you think the answer is no, the AUDJPY rate is going to be at or below 81.00 at 7PM. You would then sell the binary.

You can choose to sell a binary option for several reasons and scenarios. The AUDJPY might currently be below 81.00 and you think it will stay there. It might be in a downtrend and, even though it’s currently at 82.00, you expect it to come down. Or, maybe you have some other investment which is affected by the AUDJPY and you want to hedge against a decrease. Hedging with forex? Yes. Binary options can be useful in a variety of trading strategies. If you hold the binary until expiration, you’ll get one of two outcomes: If the AUDJPY is at or below 81.00 at 7PM ET (the expiration time), you (the seller) will get the $100 payout. But if the market is above 81.00, you get zero and the buyer of the binary gets the full payout. That is the all-or-nothing outcome at expiration. However, on Nadex you don’t have to wait until expiration. You can exit your position prior to expiration at the current market price. Your profit or loss in that case is the difference between your entry and exit prices. In other words, you can trade binary options much the way you trade any other financial instrument, but with the added protection of a capped riskreward which you set before entry. And don’t forget Nadex option spreads!

They are another powerful way to trade forex price movements within a defined floor-to-ceiling range. Experience a different way to trade. and experience a different way to trade forex. Or try it risk-free with a full-featured demo account. Trading forex with binary options. Binary options are an alternative way to play the foreign currency (forex) market for traders. Although they are a relatively expensive way to trade forex compared with the leveraged spot forex trading offered by a growing number of brokers, the fact that the maximum potential loss is capped and known in advance is a major advantage of binary options. Defining Binary Options. Binary options have two outcomes: They settle either at a pre-determined value (generally $100) or at $0. This settlement value depends on whether the price of the asset underlying the binary option is trading above or below the strike price by expiration. Binary options can be used to speculate on the outcomes of various situations: Will the S&P 500 rise above a certain level by tomorrow or next week? Will this week’s jobless claims be higher than the market expects? Or will the euro or yen decline against the U. S. dollar today? For example, say gold is trading at $1,195 per troy ounce currently and you are confident that it will be trading above $1,200 later that day. Assume you can buy a binary option on gold trading at or above $1,200 by that day’s close, and this option is trading at $57 (bid)$60 (offer). You buy the option at $60. If gold closes at or above $1,200, as you had expected, your payout will be $100, which means that your gross gain (before commissions) is $40 or 66.7%. On the other hand, if gold closes below $1,200, you would lose your $60 investment, for a 100% loss.

Buyers and Sellers of Binary Options. For the buyer of a binary option, the cost is the price at which the option is trading. For the seller of a binary option, the cost is the difference between 100 and the option price and 100. From the buyer’s perspective, the price of a binary option can be regarded as the probability that the trade will be successful. Therefore, the higher the binary option price, the greater the perceived probability of the asset price rising above the strike. From the seller’s perspective, the probability is 100 minus the option price. All binary option contracts are fully collateralized, which means that both sides of a specific contract – the buyer and seller – have to put up capital for their side of the trade. So if a contract is trading at 35, the buyer pays $35, and the seller pays $65 ($100 - $35). This is the maximum risk of the buyer and seller, and equals $100 in all cases. Thus the risk-reward profile for the buyer and seller in this instance can be stated as follows: Buyer. Maximum risk = $35 Maximum reward = $65 ($100 - $35) Seller. Maximum risk = $65 Maximum reward = $35 ($100 - $65) Binary Options in Forex Markets.

Binary options in forex are available from exchanges such as Nadex, which offers them on the most popular pairs such as USD-CAD, EUR-USD and USD-JPY, as well as on a number of other widely-traded currency pairs. These options are offered with expirations ranging from intraday to daily and weekly. The tick size on spot forex binaries from Nadex is 1, and the tick value is $1. The intraday forex binary options offered by Nadex expire hourly, while the daily ones expire at certain set times throughout the day. The weekly binary options expire at 3 P. M. on Friday. For forex contracts, Nadex calculates the expiration value by taking the midpoint prices of the last 25 trades in the forex market, eliminates the highest five and lowest five prices, and then takes the arithmetic average of the remaining 15 prices. Examples of Binary Options in Forex. Let’s use the EUR-USD currency pair to demonstrate how binary options can be used to trade forex. We use a weekly option that will expire at 3 P. M. on Friday, or four days from now (or Monday). Assume the current exchange rate is EUR 1 = USD 1.2440. Consider the following scenarios: 1. You believe the euro is unlikely to weaken by Friday and should stay above 1.2425. The binary option EURUSD>1.2425 is quoted at 49.0055.00. You buy 10 contracts for a total of $550 (excluding commissions). At 3 P. M. on Friday, the euro is trading at USD 1.2450. Your binary option settles at 100, giving you a payout of $1,000. Your gross gain (before taking commissions into account) is $450, or approximately 82%. However, if the euro had closed below 1.2425, you would lose your entire $550 investment, for a 100% loss.

2. You are bearish on the euro and believe it could decline by Friday, say to USD 1.2375. The binary option EURUSD>1.2375 is quoted at 60.0066.00. Since you are bearish on the euro, you would sell this option. Your initial cost to sell each binary option contract is therefore $40 ($100 - $60). Assume you sell 10 contracts, and receive a total of $400. At 3 P. M. on Friday, let’s say the euro is trading at 1.2400. Since the euro closed above the strike price of $1.2375 by expiration, you would lose the full $400 or 100% of your investment. What if the euro had closed below 1.2375, as you had expected? In that case, the contract would settle at $100, and you would receive a total of $1,000 for your 10 contracts, for a gain of $600 or 150%. Additional Basic Strategies. 3. You do not have to wait until contract expiration to realize a gain on your binary option contract. For instance, let's say by Thursday the euro is trading in the spot market at 1.2455, but you are concerned about the possibility of a decline in the currency if U. S. economic data to be released on Friday are very positive. In this case, your binary option contract (EURUSD>1.2425), which was quoted at 49.0055.00 at the time of your purchase, is now at 7580. Therefore, you could sell the 10 option contracts you had purchased at $55 each, for $75, and book a total profit of $200 (or 36%). 4. You can also put on a combination trade for lower risklower reward.

Let’s consider the USDJPY binary option to illustrate. Assume your view is that volatility in the yen – trading at 118.50 to the dollar – could increase significantly, and it could trade above 119.75 or decline below 117.25 by Friday. You therefore buy 10 binary option contracts (USDJPY>119.75, trading at 29.5035.50) and also sell 10 binary option contracts (USDJPY>117.25, trading at 66.5072.00). Therefore, you pay $35.50 to buy the USDJPY>119.75 contract, and $33.50 (i. e., $100 - $66.50) to sell the USDJPY>117.25 contract. Your total cost would be $690 ($355 + $335). Three possible scenarios arise by option expiration at 3 P. M. on Friday: The yen is trading above 119.75. In this case, the USDJPY>119.75 contract has a payout of $100, while the USDJPY>117.25 contract expires worthless. Your total payout is $1,000, for a gain of $310 (or about 45%). The yen is trading below 117.25. In this case, the USDJPY>117.25 contract has a payout of $100, while the USDJPY>119.75 contract expires worthless. Your total payout is $1,000, for a gain of $310 (or about 45%). The yen is trading between 117.25 and 119.75 : In this case, both contracts expire worthless and you loss the full $690 investment. Binary options are a useful tool as part of a comprehensive forex trading strategy, but have a couple of drawbacks in that the upside is limited even if the asset price spikes up, and a binary option is a derivative product with a finite lifespan (time to expiration). However, binary options have a number of advantages that make them especially useful in the volatile world of forex. For starters, the risk is limited (even if the asset prices spikes up), the collateral required is quite low, and they can be used even in flat markets that are not volatile. These advantages make forex binary options worthy of consideration for the experienced currency trader. This Privacy Policy sets out how Finance Magnates LTD uses and protects any information that you give Finance Magnates LTD when you use this website. If you continue to browse or use this website andor any of its affiliated websites andor services you are agreeing to comply with and be bound by the following Privacy Policy, which together with our Terms and Conditions (link) govern Finance Magnates LTD’s relationship with you This privacy notice applies to any Finance Magnates LTD websites, applications, services, or tools (collectively "Services") where this privacy notice is referenced, regardless of how you access or use them, including through mobile devices. Please review carefully the entire website's Privacy Policy before agreeing to it. By viewing or using this website or any part of it, you agree to the complete Privacy Policy of this website. The term "Finance Magnates LTD", "this website", "the website", "us" or "we" refers to the owner of the website.

The term "you" refers to the user or viewer of the website. Finance Magnates LTD is committed to ensuring that your privacy is protected as provided in this Privacy Policy. Should we ask you to provide certain information by which you can be identified when using this website, you can be assured that it will only be used in accordance with this Privacy Policy. What is personal information? Personal Information is information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, by reference to an identifier such as a name, an identification number, location data, an online identifier, or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person. We do not consider personal information to include information that has been anonymized or aggregated so that it can no longer be used to identify a specific natural person, whether in combination with other information or otherwise. We collect personal information from you when you use our Services. What we collect. The provision of all personal information is voluntary, but may be necessary in order to use our Services (such as registering an account). We may collect the following personal information: Identification details, such as name, age etc: When you create an account with us When you register to our events When you fill in forms on our websites Contact information including email address, phone, etc: When you create an account with us When you register to our events When you fill in forms on our websites Information we are required or authorized by applicable national laws to collect and process in order to authenticate or identify you or to verify the information we have collected.

Any information that is provided by you when using our services (community discussions, contact forms, etc). Information about other services you have bought from us, when you purchase products or services on our sites Communication we have with you (emails, letters, messages sent to us through our social media platforms, feedback, contact forms) Information about you, your location and how you use our website, information about your interests and preferences: When you accept our cookies placed on your device When you update your account information When you open our marketing emails When you click on our banner adverts When you fill in forms on our website When you get in touch with us When you respond to our requests for feedback When you opt in to receiving messages from us Personal information we collect automatically when you use our Services. We collect information about your interaction with our Services and your communications with us. This is information we receive from devices (including mobile devices) you use when you access our Services. This information could include, but not limited to, Device ID or unique identifier, device type, unique device token. Location information. Keep in mind that when using a mobile device, you can control or disable the use of location services by any application on your mobile device in the device's settings menu. Computer and connection information such as statistics on your page views, traffic to and from the sites, referral URL, ad data, your IP address, your browsing history, and your web log information. Personal information we collect using cookies and similar technologies. We use cookies, web beacons (or pixels), unique identifiers, and similar technologies to collect information about the pages you view, the links you click, and other actions you take when using our Services, within our advertising or email content. We use Google Analytics which is a web analyzing tool of Google Inc. for the purposes of the adequate design and continuous optimization of our website. Google Analytics works with cookies and creates pseudonymised usage profiles, which enable an analysis of your use of our website. Information stored in such cookies (such as browser typeversion, operating system used, referrer URL, Hostname of the accessing computer, time of server request) are usually transmitted to and stored on Google's servers. How we use cookies. A cookie is a small file which asks permission to be placed on your computer's hard drive.

Once you agree, the file is added and the cookie helps analyze web traffic or lets you know when you visit a particular site. Cookies allow web applications to respond to you. As an individual the web application can tailor its operations to your needs, likes and dislikes by gathering and remembering information about your preferences. We use traffic log cookies to identify which pages are being used. This helps us analyze data about web page traffic and improve our website in order to tailor it to customer needs. We only use this information for statistical analysis purposes and then the data is removed from the system. Overall, cookies help us provide you with a better website, by enabling us to monitor which pages you find useful and which you do not. A cookie in no way gives us access to your computer or any information about you, other than the data you choose to share with us. You can choose to accept or decline cookies. Most web browsers automatically accept cookies, but you can usually modify your browser setting to decline cookies if you prefer. This may prevent you from taking full advantage of the website. Personal information collected from other sources. We allow you to share information with social media sites, or use social media sites to create your account or to connect your account with the respective social media site. Those social media sites may give us automatic access to certain personal information retained by them about you (e. g., content viewed by you, content liked by you, and information about the advertisements you have been shown or have clicked on, etc.). You control the personal information you allow us to have access to through the privacy settings on the applicable social media site and the permissions you give us when you grant us access to the personal information retained by the respective social media site about you. By associating an account managed by a social media site with your account and authorizing us to have access to this information, you agree that we can collect, use and retain the information provided by these social media sites in accordance with this privacy notice. We may also use plug-ins or other technologies from various social media sites.

If you click on a link provided via a social media plug in, you are voluntarily establishing a connection with that respective social media site. If you give us personal information about someone else, you must do so only with that person's authorization. You should inform them how we collect, use, disclose, and retain their personal information according to our privacy notice. What we do with the information we gather. We require this information to understand your needs and provide you with a better service, and in particular for the following reasons: Internal record keeping. Providing customer service. Improvement of our products and services. When you register to one of our events we use the information to send you information regarding the event and other relevant upcoming events. Please notice that you will subscribe to the event mailing list after clicking "save and continue" in the first registration page. Periodic promotional emails about new products, special offers or other information which we think you may find interesting using the contact details which you have provided. You can opt out of receiving marketing emails by clicking on the unsubscribe link which we include in all our marketing emails. Emailsalerts to you based on your account settings. Personalized experience (including advertising and marketing) on our sites according to your interests. Detect, prevent, mitigate and investigate fraudulent or illegal activities.

How long we keep your data: We retain your personal information for as long as necessary to provide the Services you have requested, or for other essential purposes such as complying with our legal obligations, resolving disputes, and enforcing our policies. How we protect your data. We protect your personal data against unauthorised access, unlawful use, accidental loss, corruption or destruction. We use technical measures such as encryption and password protection to protect your data and the systems they are held in. We also use operational measures to protect the data, for example by limiting the number of people who have access to the databases in which our booking information is held. We keep these security measures under review and refer to industry security standards to keep up to date with current best practice. Sharing your data How we might share your personal information. We may disclose your personal information to other separate services within Finance Magnates LTD or to third parties. This disclosure may be required for us to provide you access to our Services, to comply with our legal obligations, to enforce our Terms of Service, to facilitate our marketing and advertising activities, or to prevent, detect, mitigate, and investigate fraudulent or illegal activities related to our Services. We attempt to minimize the amount of personal information we disclose to what is directly relevant and necessary to accomplish the specified purpose. We do not sell, rent, or otherwise disclose your personal information to third parties for their marketing and advertising purposes without your consent. In the event that Finance Magnates LTD is acquired by or merged with a third party, we reserve the right, in any of these circumstances, to transfer or assign the information we have collected from you as part of such merger, acquisition, sale, or other change of control.

In the unlikely event of our bankruptcy, insolvency, reorganization, receivership, or assignment for the benefit of creditors, or the application of laws or equitable principles affecting creditors' rights generally, we may not be able to control how your information is treated, transferred, or used. How do we protect your personal information. We use secure server software (SSL) and firewalls to protect your information from unauthorized access, disclosure, alteration, or destruction. Furthermore, our employees and third party service providers have access to your non-public personal information only on a "need to know" basis. We follow industry standards to protect the personal information submitted to us, both during transmission and once we receive it. No method of transmission over the Internet, or method of electronic storage, is 100% secure. Therefore, while we use commercially acceptable means to protect your personal information, we cannot guarantee its absolute security. When your credit or debit card account information is being transmitted to our Sites or through our Sites, it will be protected by cryptographic protocols. To be clear, Finance Magnates LTD does not itself store your credit or debit card account information, and we do not have direct control over or responsibility for your credit or debit card account information. We use third party payment processors that are the controllers of your credit card information. Our contracts with third parties that receive your credit or debit card account information require them to keep it secure and confidential. You have the following rights concerning our processing of your personal data: Right to access Right to rectification what is that? Right to erasure Right to object (on grounds relating your particular situation) in case of processing of your personal data based on our legitimate interest (e. g. direct marketing) Right to withdraw your consent at any time in case of any consent-based processing of your personal data without affecting the lawfulness of processing based on consent before your withdrawal; Right to lodge a complaint with a supervisory authority.

To raise any objections or to exercise any of your rights, you can send an email to us at [email protected] com or you can write to us at 7 Zabotinski Street, Ramat Gan, Israel. To exercise choices regarding cookies, you can modify your browser setting to decline cookies if you prefer. This may prevent you from taking full advantage of the website. To stop receiving marketing emails from us, you can opt out of receiving marketing emails by clicking on the unsubscribe link which we include in all our marketing emails. If you have created an online Profile with us and would like to update the information you have provided to us, you can access your account to view and make changes or corrections to your information. You may also contact us as detailed in the Contact Us section, below. When you get in touch, we will come back to you as soon as possible and where possible within one month. If your request is more complicated, it may take a little longer to come back to you but we will come back to you within two months of your request. There is no charge for most requests, but if you ask us to provide a significant about of data for example we may ask you to pay a reasonable admin fee. We may also ask you to verify your identity before we provide any information to you. You can write to us at 7 Zabotinski Street, Ramat Gan, Israel. or you can send an email to us at [email protected] com. Finance Magnates LTD may change this policy from time to time by updating this page, and by providing any information to Finance Magnates LTD you're accepting such changes.

You should check this page from time to time for any changes. This policy is effective from 2505 2018. Cookies Policy : What Are Cookies. As is common practice with almost all professional websites this site uses cookies, which are tiny files that are downloaded to your computer, to improve your experience. This page describes what information they gather, how we use it and why we sometimes need to store these cookies. We will also share how you can prevent these cookies from being stored however this may downgrade or ‘break’ certain elements of the sites functionality. For more general information on cookies see the Wikipedia article on HTTP Cookies. How We Use Cookies. We use cookies for a variety of reasons detailed below. Unfortunately is most cases there are no industry standard options for disabling cookies without completely disabling the functionality and features they add to this site. It is recommended that you leave on all cookies if you are not sure whether you need them or not in case they are used to provide a service that you use. You can prevent the setting of cookies by adjusting the settings on your browser (see your browser Help for how to do this). Be aware that disabling cookies will affect the functionality of this and many other websites that you visit. Disabling cookies will usually result in also disabling certain functionality and features of the this site.

Therefore it is recommended that you do not disable cookies. The Cookies We Set. If you create an account with us then we will use cookies for the management of the signup process and general administration. These cookies will usually be deleted when you log out however in some cases they may remain afterwards to remember your site preferences when logged out. We use cookies when you are logged in so that we can remember this fact. This prevents you from having to log in every single time you visit a new page. These cookies are typically removed or cleared when you log out to ensure that you can only access restricted features and areas when logged in. This site offers newsletter or email subscription services and cookies may be used to remember if you are already registered and whether to show certain notifications which might only be valid to subscribedunsubscribed users. This site offers e-commerce or payment facilities and some cookies are essential to ensure that your order is remembered between pages so that we can process it properly. From time to time we offer user surveys and questionnaires to provide you with interesting insights, helpful tools, or to understand our user base more accurately. These surveys may use cookies to remember who has already taken part in a survey or to provide you with accurate results after you change pages. When you submit data to through a form such as those found on contact pages or comment forms cookies may be set to remember your user details for future correspondence. In order to provide you with a great experience on this site we provide the functionality to set your preferences for how this site runs when you use it. In order to remember your preferences we need to set cookies so that this information can be called whenever you interact with a page is affected by your preferences. Third Party Cookies. In some special cases we also use cookies provided by trusted third parties. The following section details which third party cookies you might encounter through this site. Third party analytics are used to track and measure usage of this site so that we can continue to produce engaging content.

These cookies may track things such as how long you spend on the site or pages you visit which helps us to understand how we can improve the site for you. From time to time we test new features and make subtle changes to the way that the site is delivered. When we are still testing new features these cookies may be used to ensure that you receive a consistent experience whilst on the site whilst ensuring we understand which optimisations our users appreciate the most. As we sell products it’s important for us to understand statistics about how many of the visitors to our site actually make a purchase and as such this is the kind of data that these cookies will track. This is important to you as it means that we can accurately make business predictions that allow us to monitor our advertising and product costs to ensure the best possible price. The Google AdSense service we use to serve advertising uses a DoubleClick cookie to serve more relevant ads across the web and limit the number of times that a given ad is shown to you. For more information on Google AdSense see the official Google AdSense privacy FAQ. We use adverts to offset the costs of running this site and provide funding for further development. The behavioural advertising cookies used by this site are designed to ensure that we provide you with the most relevant adverts where possible by anonymously tracking your interests and presenting similar things that may be of interest. In some cases we may provide you with custom content based on what you tell us about yourself either directly or indirectly by linking a social media account. These types of cookies simply allow us to provide you with content that we feel may be of interest to you. We also use social media buttons andor plugins on this site that allow you to connect with your social network in various ways. For these to work the following social media sites including; Facebook, Twitter, Instagram, YouTube, LinkedIn, Google+, will set cookies through our site which may be used to enhance your profile on their site or contribute to the data they hold for various purposes outlined in their respective privacy policies. Agreement or the failure of either Party to exercise any right or remedy to which it, he or they are entitled hereunder shall not constitute a waiver thereof and shall not cause a diminution of the obligations under this or any Agreement. No waiver of any of the provisions of this or any Agreement shall be effective unless it is expressly stated to be such and signed by both Parties.

Notification of Changes. Hopefully that has clarified things for you and as was previously mentioned if there is something that you aren’t sure whether you need or not it’s usually safer to leave cookies enabled in case it does interact with one of the features you use on our site. However if you are still looking for more information then you can contact us through one of our preferred contact methods. Terms Of Use: In using this website you are deemed to have read and agreed to the following terms and conditions: The following terminology applies to these Terms and Conditions, Privacy Statement and Disclaimer Notice and any or all Agreements: “Client”, “You” and “Your” refers to you, the person accessing this website and accepting the Finance Magnates LTD’s terms and conditions. “The Finance Magnates LTD”, “Ourselves”, “We” and “Us”, refers to our Finance Magnates LTD. “Party”, “Parties”, or “Us”, refers to both the Client and ourselves, or either the Client or ourselves. All terms refer to the offer, acceptance and consideration of payment necessary to undertake the process of our assistance to the Client in the most appropriate manner, whether by formal meetings of a fixed duration, or any other means, for the express purpose of meeting the Client’s needs in respect of provision of the Finance Magnates LTD’s stated servicesproducts, in accordance with and subject to, prevailing English Law. Any use of the above terminology or other words in the singular, plural, capitalisation andor heshe or they, are taken as interchangeable and therefore as referring to same. We are committed to protecting your privacy. Authorized employees within the Finance Magnates LTD on a need to know basis only use any information collected from individual customers. We constantly review our systems and data to ensure the best possible service to our customers. Parliament has created specific offences for unauthorised actions against computer systems and data. We will investigate any such actions with a view to prosecuting andor taking civil proceedings to recover damages against those responsible.

Client records are regarded as confidential and therefore will not be divulged to any third party, other than Finance Magnates LTD, if legally required to do so to the appropriate authorities. We will not sell, share, or rent your personal information to any third party or use your e-mail address for unsolicited mail. Any emails sent by this Finance Magnates LTD will only be in connection with the provision of agreed services and products. Exclusions and Limitations The information on this web site is provided on an “as is” basis. To the fullest extent permitted by law, this Finance Magnates LTD:excludes all representations and warranties relating to this website and its contents or which is or may be provided by any affiliates or any other third party, including in relation to any inaccuracies or omissions in this website andor the Finance Magnates LTD’s literature; and excludes all liability for damages arising out of or in connection with your use of this website. This includes, without limitation, direct loss, loss of business or profits (whether or not the loss of such profits was foreseeable, arose in the normal course of things or you have advised this Finance Magnates LTD of the possibility of such potential loss), damage caused to your computer, computer software, systems and programs and the data thereon or any other direct or indirect, consequential and incidental damages. Finance Magnates LTD does not however exclude liability for death or personal injury caused by its negligence. The above exclusions and limitations apply only to the extent permitted by law. None of your statutory rights as a consumer are affected. We use IP addresses to analyse trends, administer the site, track user’s movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information. Additionally, for systems administration, detecting usage patterns and troubleshooting purposes, our web servers automatically log standard access information including browser type, access timesopen mail, URL requested, and referral URL. This information is not shared with third parties and is used only within this Finance Magnates LTD on a need-to-know basis. Any individually identifiable information related to this data will never be used in any way different to that stated above without your explicit permission. Like most interactive web sites this Finance Magnates LTD’s website or ISP uses cookies to enable us to retrieve user details for each visit. Cookies are used in some areas of our site to enable the functionality of this area and ease of use for those people visiting.

Links to this website. You may not create a link to any page of this website without our prior written consent. If you do create a link to a page of this website you do so at your own risk and the exclusions and limitations set out above will apply to your use of this website by linking to it. Links from this website. We do not monitor or review the content of other party’s websites which are linked to from this website. Opinions expressed or material appearing on such websites are not necessarily shared or endorsed by us and should not be regarded as the publisher of such opinions or material. Please be aware that we are not responsible for the privacy practices, or content, of these sites. We encourage our users to be aware when they leave our site & to read the privacy statements of these sites. You should evaluate the security and trustworthiness of any other site connected to this site or accessed through this site yourself, before disclosing any personal information to them. This Finance Magnates LTD will not accept any responsibility for any loss or damage in whatever manner, howsoever caused, resulting from your disclosure to third parties of personal information. Copyright and other relevant intellectual property rights exists on all text relating to the Finance Magnates LTD’s services and the full content of this website. All rights reserved. All materials contained on this site are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Finance Magnates LTD. You may not alter or remove any trademark, copyright or other notice from copies of the content. All information on this page is subject to change.

The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Opinions expressed at Finance Magnates LTD are those of the individual authors and do not necessarily represent the opinion of Fthe Finance Magnates LTD or its management. Finance Magnates LTD has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions might occur. Any opinions, news, research, analyses, prices or other information contained on this website, by Finance Magnates LTD, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Finance Magnates LTD will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Neither party shall be liable to the other for any failure to perform any obligation under any Agreement which is due to an event beyond the control of such party including but not limited to any Act of God, terrorism, war, Political insurgence, insurrection, riot, civil unrest, act of civil or military authority, uprising, earthquake, flood or any other natural or man made eventuality outside of our control, which causes the termination of an agreement or contract entered into, nor which could have been reasonably foreseen. Any Party affected by such event shall forthwith inform the other Party of the same and shall use all reasonable endeavours to comply with the terms and conditions of any Agreement contained herein. Failure of either Party to insist upon strict performance of any provision of this or any Agreement or the failure of either Party to exercise any right or remedy to which it, he or they are entitled hereunder shall not constitute a waiver thereof and shall not cause a diminution of the obligations under this or any Agreement. No waiver of any of the provisions of this or any Agreement shall be effective unless it is expressly stated to be such and signed by both Parties.

Notification of Changes. The Finance Magnates LTD reserves the right to change these conditions from time to time as it sees fit and your continued use of the site will signify your acceptance of any adjustment to these terms. If there are any changes to our privacy policy, we will announce that these changes have been made on our home page and on other key pages on our site. If there are any changes in how we use our site customers’ Personally Identifiable Informatio



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