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www.firstbinaryoption.com
How it works

In finance, a binary option is a type of option where the payoff is either some fixed amount of
some asset or nothing-at-all.

The two main types of binary options are the cash-or-nothing binary option and the asset-or-
nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the
option expires in-the-money while the asset-or-nothing pays the value of the underlying
security.

Thus, the options are binary in nature because there are only two possible outcomes. They are
also called all-or-nothing options, digital options (more common in forex / interest rate
markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are
usually European-style options.




                                 www.firstbinaryoption.com
The advantages of binary options market
In 2007, the Options Clearing Corporation proposed a rule change to allow binary options, and
the Securities and Exchange Commission approved listing cash-or-nothing binary options in
2008. In May 2008, the American Stock Exchange (Amex) launched exchange-traded European
cash-or-nothing binary options, and the Chicago Board Options Exchange (CBOE) followed in
June 2008. The standardization of binary options allows them to be exchange-traded with
continuous quotations.

The special feature of binary options is the possibility to know possible profit / loss amounts
beforehand, which means that they can be used for hedging exchange risks on the spot market.
The trading platform of the First Binary Option Service is realized in a web-interface and doesn’t
require installing any special software onto a user’s computer. It’s quite simple, as compared
with trading platforms used on the spot market, therefore it perfectly suits for studying
peculiarities of financial markets.

First Binary Option Service provides a large number of trading tools of different types –
currency pairs, commodities, CFD.


                                 www.firstbinaryoption.com
About us

First Binary Option Service has been set up by a group of professionals with a large practical
trading and investment experience. A trading platform from First Binary Option Service has been
devised by high-level programmers and it’s the most state-of-the-art product in the branch
today. The company’s activities fully correspond to the SIBA requirements and, in particular, to
the “Seychelles International Business Authority Act” of 1994.

Benefits of «First Binary Option Service»:
   MINIMUM TRANSACTION AMOUNT: 1 CONVENTIONAL UNIT
   MINIMUM DEPOSIT AMOUNT: 5 CONVENTIONAL UNITS
   TRADING INTERVALS: FROM 1 MINUTE TO 30 DAYS
   MAXIMUM SECURITY DEPOSIT REIMBURSEMENT
   CONTRACT PAYOFF UP TO 765%
   INTERESTS ON SURPLUS FUNDS

       The company «First Binary Option Service» offers five types of binary options –
        «High – Low» «One Touch» «No Touch» «In Range» «Out Range»


                                 www.firstbinaryoption.com
The unique trading platform by First Binary Option Service

                                   1 - Option types switch panel
                                   2 - Rate parameters control panel
                                   3 - Concrete market instrument research
                                   4 - Chart display control panel
                                   5 - Transaction execution buttons
                                   6 - Complete information on all transactions
                                   7 - Display of auxiliary lines on a chart
                                   8 - Display of a transaction in a new window




                     www.firstbinaryoption.com
High-Low

                                              Option contracts of «High - Low» class are the
                                              easiest financial mechanism to use proposed by
                                              «First Binary Option Service». It is possible to use
                                              contracts of these types as in speculative purposes,
                                              and for partial hedging of risks a trader
                                              undergoes in the futures and options (Spot)
                                              market.

If you choose «Call» contract, for the successful execution it is necessary that the closing price
will be at least one point higher than the opening price. If you choose «Put» contract, for its
successful execution it is necessary that closing price will be at least one point lower than the
opening price. Quoting is executed in a four-digit system. In case at the moment of contract’s
closure the closing price is equal to opening one, the contract will be considered as
unexecuted.



                                  www.firstbinaryoption.com
One Touch

                                                         Option contract of the type “One
                                                         Touch” is a contract where price of the
                                                         tool stays in “touch” with the selected
                                                         level within a certain time period.



If you select option contract of the type “Up”, price of the contract execution (price “Strike”) will
be above the current price of the tool on the price chart. If you select option contract of the type
“Down”, price of the contract will be below the current price of the tool on the price chart.
Under terms of this contract price of the tool shall “touch” (stay in) specified level, for a certain
time period.




                                  www.firstbinaryoption.com
No Touch
                                                     Option contract of the type “No Touch”
                                                     represents a contract where terms and
                                                     condition specify that the price of the tool
                                                     should not reach (Touch) the level, which
                                                     you selected, within certain period of time.
                                                     Options of the type “No Touch” are
                                                     subdivided into two kinds of contracts:“Up”
                                                     and “Down”.

In case you choose option contract of the type “Up”, price barrier for such contract (price
“Strike”) will be above current price of the tool on the price chart. If you choose option
contract of the type “Down” it will mean that price barrier of such contract will be below the
current price of the tool on the price chart. Execution of the contract implies that price of the
tool should not reach (touch) execution level “Strike” within a certain time period.




                                  www.firstbinaryoption.com
In Range

                                                       Option contract of the type “In Range” is a
                                                       contract with the following terms and
                                                       conditions: within certain period of time
                                                       specified by you, price for the tool
                                                       selected by you will not exceed
                                                       established price range.


Contracts of the type “In Range” are not subdivided into contracts “Call” (“Up”) or “Put”
(“Down”). You can buy a contract by clicking the button (“In”), if terms and conditions
described in the trading terminal are acceptable to you. If conditions are not suitable, just do
not enter into contract.




                                  www.firstbinaryoption.com
Out Range

                                                        Option contract of the type “Out Range”
                                                        represents a contract with the following
                                                        terms and conditions: within a certain
                                                        time period, price for the tool which you
                                                        select, shall go beyond the price range
                                                        specified by you.


Contract of the type “Out Range” is not subdivided into contracts “Call” (“Up”) or “Put”
(“Down”). You can buy this contract clicking the button “Out”, if the terms and conditions
described in the trading terminal are acceptable for you. If these conditions are not suitable for
you do not buy a contract.




                                 www.firstbinaryoption.com
www.firstbinaryoption.com

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First Binary Option

  • 2. How it works In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing-at-all. The two main types of binary options are the cash-or-nothing binary option and the asset-or- nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex / interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-style options. www.firstbinaryoption.com
  • 3. The advantages of binary options market In 2007, the Options Clearing Corporation proposed a rule change to allow binary options, and the Securities and Exchange Commission approved listing cash-or-nothing binary options in 2008. In May 2008, the American Stock Exchange (Amex) launched exchange-traded European cash-or-nothing binary options, and the Chicago Board Options Exchange (CBOE) followed in June 2008. The standardization of binary options allows them to be exchange-traded with continuous quotations. The special feature of binary options is the possibility to know possible profit / loss amounts beforehand, which means that they can be used for hedging exchange risks on the spot market. The trading platform of the First Binary Option Service is realized in a web-interface and doesn’t require installing any special software onto a user’s computer. It’s quite simple, as compared with trading platforms used on the spot market, therefore it perfectly suits for studying peculiarities of financial markets. First Binary Option Service provides a large number of trading tools of different types – currency pairs, commodities, CFD. www.firstbinaryoption.com
  • 4. About us First Binary Option Service has been set up by a group of professionals with a large practical trading and investment experience. A trading platform from First Binary Option Service has been devised by high-level programmers and it’s the most state-of-the-art product in the branch today. The company’s activities fully correspond to the SIBA requirements and, in particular, to the “Seychelles International Business Authority Act” of 1994. Benefits of «First Binary Option Service»:  MINIMUM TRANSACTION AMOUNT: 1 CONVENTIONAL UNIT  MINIMUM DEPOSIT AMOUNT: 5 CONVENTIONAL UNITS  TRADING INTERVALS: FROM 1 MINUTE TO 30 DAYS  MAXIMUM SECURITY DEPOSIT REIMBURSEMENT  CONTRACT PAYOFF UP TO 765%  INTERESTS ON SURPLUS FUNDS The company «First Binary Option Service» offers five types of binary options – «High – Low» «One Touch» «No Touch» «In Range» «Out Range» www.firstbinaryoption.com
  • 5. The unique trading platform by First Binary Option Service 1 - Option types switch panel 2 - Rate parameters control panel 3 - Concrete market instrument research 4 - Chart display control panel 5 - Transaction execution buttons 6 - Complete information on all transactions 7 - Display of auxiliary lines on a chart 8 - Display of a transaction in a new window www.firstbinaryoption.com
  • 6. High-Low Option contracts of «High - Low» class are the easiest financial mechanism to use proposed by «First Binary Option Service». It is possible to use contracts of these types as in speculative purposes, and for partial hedging of risks a trader undergoes in the futures and options (Spot) market. If you choose «Call» contract, for the successful execution it is necessary that the closing price will be at least one point higher than the opening price. If you choose «Put» contract, for its successful execution it is necessary that closing price will be at least one point lower than the opening price. Quoting is executed in a four-digit system. In case at the moment of contract’s closure the closing price is equal to opening one, the contract will be considered as unexecuted. www.firstbinaryoption.com
  • 7. One Touch Option contract of the type “One Touch” is a contract where price of the tool stays in “touch” with the selected level within a certain time period. If you select option contract of the type “Up”, price of the contract execution (price “Strike”) will be above the current price of the tool on the price chart. If you select option contract of the type “Down”, price of the contract will be below the current price of the tool on the price chart. Under terms of this contract price of the tool shall “touch” (stay in) specified level, for a certain time period. www.firstbinaryoption.com
  • 8. No Touch Option contract of the type “No Touch” represents a contract where terms and condition specify that the price of the tool should not reach (Touch) the level, which you selected, within certain period of time. Options of the type “No Touch” are subdivided into two kinds of contracts:“Up” and “Down”. In case you choose option contract of the type “Up”, price barrier for such contract (price “Strike”) will be above current price of the tool on the price chart. If you choose option contract of the type “Down” it will mean that price barrier of such contract will be below the current price of the tool on the price chart. Execution of the contract implies that price of the tool should not reach (touch) execution level “Strike” within a certain time period. www.firstbinaryoption.com
  • 9. In Range Option contract of the type “In Range” is a contract with the following terms and conditions: within certain period of time specified by you, price for the tool selected by you will not exceed established price range. Contracts of the type “In Range” are not subdivided into contracts “Call” (“Up”) or “Put” (“Down”). You can buy a contract by clicking the button (“In”), if terms and conditions described in the trading terminal are acceptable to you. If conditions are not suitable, just do not enter into contract. www.firstbinaryoption.com
  • 10. Out Range Option contract of the type “Out Range” represents a contract with the following terms and conditions: within a certain time period, price for the tool which you select, shall go beyond the price range specified by you. Contract of the type “Out Range” is not subdivided into contracts “Call” (“Up”) or “Put” (“Down”). You can buy this contract clicking the button “Out”, if the terms and conditions described in the trading terminal are acceptable for you. If these conditions are not suitable for you do not buy a contract. www.firstbinaryoption.com