Binary Option Trading
Frequently Asked Questions

Trading | Deposits and Withdrawals | My Account | Technical

Trading

1. What is a Binary Option?

A binary option refers to type of options provided to the investor while trading digitally. It is also known as digital option or even fixed return option. The payout is already determined at the time of contract initiation. The buyer has to pay a premium in case the option is not used within the one hour of the contract. While the profit rate differs from broker to broker, the average is between 60 and 81%.

2. What is an Underlying Asset?

In trading, the investment contract is drawn on the security of an asset which is called as an underlying asset. This asset can be anything from commodities, index, stock or currency.

3. What is a Call Option?

In this type of option, the buyer receives profit when the price of the underlying asset increases more than the price at the time of the contract during the contract duration. In case the option expires at the same price, then the total investment amount is returned.

4. What is a Put Option?

This type of option offers the buyer a profit when the price decreases than the price level at the time of the agreement. If the price stays at the same level then the buyer gets back the whole amount.

5. What is the investment amount?

The amount that the buyer invests in trading is the investment amount.
 

6. How to invest?

The investor needs to choose among the two options that is ‘call’ or ‘put’. Once an option is selected, the investment sheet would appear and the investor can enter the amount and click enter. The transaction can be canceled before it is approved.

7. What is the return for a successful investment?

Usually the return amount in any type of binary option trading is between 60 to 81 % in case of successful investment. If not, the refund value would be 15% of the total investment.

8. What return can be received if the option expires out-of-the-money?

If the option expires out-of-the-money, the investor’s account is credited with 15% of the investment amount.

9. What is the maximum investment amount?

An investor can invest about 3,000 USD for a single option. But if he wants he can also buy multiple options.

10. What is the expiry level?

When a contract is made a time frame is decided along with the level of the underlying asset. The profit or loss is dependent on this level. The expiry level determines the trading ended in-the-money or out-of-the-money. It changes with every new agreement.

11. What is the expiry time?

This refers to the expiry of the time frame determined at the time of the agreement.
 

12. What is the time zone of the expiry time?

Usually the working hours of the trading platform is shown as the trading hours and the local time for the investor is shown as the expiry time.

13. Are the profits taxable?

Investors are responsible for the taxation liabilities specific to their country or region.

14. Why can't I invest?

As the assets are available only during the market trading hours, they are disabled after that specific time.

15. Where is the time schedule for the trading hours of specific assets?

Usually the trading platforms provide the availability of the assets, descriptions, expiry times, symbols along with the trading hours. These can be viewed at the Asset Index.

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Deposits and Withdrawals

1. What are the deposit options?

An investor can make a deposit through Visa, MasterCard and Diners cards, as well as debit cards. Some trading platforms even allow bank transfers.

2. Which currencies can be used?

Any of the reputed currencies like US Dollars, Euros or Pounds Sterling can be used in trading.

3. Is there a minimal withdrawal amount?

No minimal withdrawal amount is there but the trading platforms provide a single withdrawal without the commission fees.

4. How can an investor withdraw his profits?

An investor has to login to the trading platform and click on withdraw option inside the ‘My Account’ section.

5. Must I make a deposit in order to register?

No deposit is required and no credit/debit card details are required in order to register for the site.

6. What does Reverse Withdraw mean?

The investor can cancel the withdrawal even when the withdrawal is processed and this is known as reverse withdrawal. This helps when the investor doesn’t have enough funds in his account.

7. What is a Swift Code?

The unique identification code that denotes a bank account is known as the swift code. It helps in transferring funds between banks.

8. How can one cancel withdrawals?

The investor can cancel a withdrawal by clicking on the ‘Reverse Withdraw’ option inside the user account.

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My account

1. What should one do if the password is forgotten?

The investor has to request for a change of password by filling out a relevant form. The password would then be sent to the indicated email account.

2. How can one personalize the home page?

There are about four popular and active options that are displayed in the homepage as an investor logins into a trading platform. The investor can select one of these options and that would be saved till the next visit.

3. Where is the transactions history provided?

The deposits, withdrawals and investments history is located in different sections under the “My Account” Menu.

4. How to update personal details?

An investor can update the personal information in My Account.

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Technical

1. Is there any need of software download?

Trading platforms provide the interface to trade online. So there is no need of downloading any software.

2. How to change the language?

An investor can change the language any time by selecting the required language from the drop down provided at the home page.

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