INTRODUCTION TO BINARY OPTIONS TRADING

Option Banque Training Series Vol. 1
BASICS OF BINARY
OPTIONS TRADING
INTRODUCTION TO BINARY
OPTIONS TRADING
Capital Street BancClear Corporation Ltd | Suite 305, Griffith Corporate Centre,
Beachmont, KingsTown, Saint Vincent and The Grenadines
Email: info@optionbanque.com | Web: www.optionbanque.com

INTRODUCTION TO BINARY OPTIONS TRADING
Binary Options as the name of financial instruments, sounds complicated, but in reality, they
are not at all complex. Binary options allow trading in currencies, stock indices, commodities,
bonds and shares—even economic events with a relatively small amount of money and limited
risk.
Generally speaking, all a trader needs to do is estimate the possible direction of the markets
from any given point. Hence Binary Options trading carries just two investment possibilities.
When a trader estimates that the price of the asset will rise, the investment/trade made corre-
sponding to that, is termed asbuying a “Call” option. The other possibility is presented when a
trader estimates that the price of the asset will fall, and trades/invests to benefit from it, this
type of investment/trade is called the buying of a “Put” option.
WHY CHOOSE BINARY OPTIONS?
There are some reasons why binary options should be preferred for investment, let’s discuss
them briefly;
Simple Concept. Technically binary option trading is a lot easier than trading directly in
the underlying assets, for example foreign exchange, because there are no concerns related to
the time value decay of options,no technical jargons, no/very few emotions involved in stop-
ping losses or letting profits run, no patterns or day trading rules(related to the products
traded etc.
Higher Returns. With binary Options, the average ROI tends to be between 65% and 90%,
for most assetsover 1 hour of investing time. It is rare for any other financial instrument to oﬀer
comparable returns within similar time-frames. Returns can go as high as 700% for longer
maturities.
No hidden charges, no commission. With binary options trading, you do not need to pay
any brokerage commission ever! Your invested amount, your returns, your trades are free from
brokerage commission and there is no other hidden charge on them.
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Easier Risk Management. With binary options trading you decide and state the investment
amount for a fixed return (profit) with your invested amount returned to you if your investment
decision is correct. For example, you invested $50 with a return rate of 70% and an insurance
rate of 10%…if your investment decision is correct (i.e. the option expires in the money), you
will get your $50 invested amount back, along with the 70% profit of $35.Thus the total cash
return to you is $85. Similarly, if your investment decision is incorrect (i.e. the option expires
out of money), you will only get back $5 being the 10% insurance amount.
Note: Not all brokers oﬀer insurance on trade losses.
With this, you know precisely, how much your risk exposure is, and your returns and you can
invest based on your risk preference per se.
Trading binary options is easy. Binary options do not rely on luck. What you need to do is
to study the behavior of the asset that interests you. With binary options, you do not need the
knowledge of an analyst or forecaster to turn your investment in binary options into a profit.
The only knowledge you really need is to be able to estimate the direction that the price ofyour
chosen asset will move in, for the duration of your trade/investment. If you take time to watch
the asset you want to invest in and can reasonably estimate the direction of the price (using
analytical trading tools, of course) then you could be like many other successful investors
trading in binary options, and creating a complementary income stream for yourself.
Binary options trading is available 24/7. Option Banque allows trading in high yield week-
end options oﬀering lucrative return of 500%-800%. You can trade options anytime through-
out the week unlike forex or any other financial trading market.

TRADING HOURS FOR BINARY OPTIONS TRADING
The trading hours for binary options depend on the hours in which the underlying assets for
binary options are traded. Currencies are a 24 hour market, so currencies are available for
trading as binary options the whole day, 7 days a week (weekend options over the weekend).
Stocks are traded for between 6-8 hours a day, depending on the stock exchange where the
stock is traded. In the United States, this is from 1.30 GMT to 8.00 GMT. In Europe, this is from 8
am GMT to 3/4 PM GMT. For stock index futures, the trading hours correspond to the hours of
operation of the individual markets.
CONCLUSION
Exclusive and exotic options are also available on all the above mentioned assets even during
oﬀ-market hours/days(in cases where the underlying markets are not open, at any given point
in time).
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RISK DISCLOSURE:
Option Banque does not assume any responsibility for any loss or damage
arising by following the information provided by Option Banque. This
includes The Educational Material, Price Quotes, Charts and Analysis.
Please be aware of the risks associated with trading the ﬁnancial markets;
never invest more money than you can risk losing.
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INTRODUCTION TO BINARY OPTIONS TRADING

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