FAQ

  1. What are binary options? This is an investment tool which is also known as digital options or fixed returns. These are estimates of the assets that you are trading and then keep a keen eye on them as to how they will behave as the day goes by.
  2. What are assets? These are the stock, commodities, currency or indices that you are trading and where you derive the option. Assets do not have ownership therefore when you buy binary options; the value is like that of the real market. The four most common types of assets are: currencies, stocks, commodities and indices.
  3. What is referred to as a call option? This offers the trader some amount of profit whenever the value of the option is more than its value by the time it expired. In the event that the option expires at the value it had been predicted, then there is no loss or profit made. This is also called going long.
  4. What is a put option? This is where the trader has the opportunity to make profit when the expiration of the option is less than the value it was bought at. This is also called going short.
  5. What is strike price? This is the price that shows the current value in the market of the asset that you are trading in the event that the option gets executed.
  6. What is an investment amount? This is the amount that the trader invests in a certain trade. The amount will vary depending on what you want to invest and the trade you are engaged in too. These amounts will determine the payout percentage that you get and the profits that you make too in a predetermined percentage. Therefore you are in control of the losses or profits you make by the end of the day.
  7. How do I trade in binary options? First, you have to choose the asset you want to trade. Secondly, predict whether the price will go up or down as compared to the current market price. You also choose the expiry time ranging from a minute to a month. You can cancel a trade by clicking the X button before it is approved.
  8. What are returns of successful investment? These will make you richer by between 65% and 100%. Each asset has its predetermined payout indicated in the website. The payout will vary depending on the asset that you are trading.
  9. What is the return for options that expire out of money? The investor will first of all loose the money they had invested. They will however get a small percentage back to avoid losing everything.
  10. Is there a maximum investment amount? Yes and it varies since it is determined by a varied number of factors. However, the trader can trade several assets in the event that they want to trade a lot but a single asset does not allow it. Therefore before investing you should check what the maximum amount is.
  11. What is an expiry level? This is the value when the asset expires. The expiration will determine whether the investment the trader had made has ended out of money or in the money. The expiry level will vary depending on the asset that you are trading.
  12. What is an expiry time? This is the time and date when a binary option expires. The trader determines the expiry time before they can start the trade. The expiry times could range between 60 seconds and 24 hours. The trader chooses the time which they are most comfortable with.
  13. Is the profit that I make going to be taxed? This will depend on the laws of the country in which you are trading. The broker that you are trading with is not the one who determines this therefore it is important that you find this out before you start trading.
  14. Why is it that I am not able to invest? This would be if your account does not have enough money. You will be able to see the value of the assets that you want to trade in, but will not be able to invest until when you have made a deposit into your account.
  15. Can I be able to change the expiry time? This is set before the trade commences and once the trade starts, you will not be able to do anything about the time frame. You will however be able to have more than one trade open and all of them with different time frames.
  16. What are the minimum and the maximum amount that I can invest? In most cases, the minimum amount is $25 while the maximum is $10,000. This is the case in most assets and most brokers. Each of the amounts you have invested attracts different bonus, profits and other benefits.
  17. How do I deposit the money I want to trade with? There are a number of ways in which you can do this. These include but are not limited to: credit cards, eWallet and bank transfers among others. The process of depositing the amount is found on the website of the broker.
  18. What currencies can I use to make a deposit? All the major currencies in the world are supported though there are some brokers who specify on specific currencies to be used. Therefore you should check this information from their website so as not to make a mistake.
  19. What is the minimum amount that I can withdraw? This will differ depending on the broker that you are using but in most cases the minimum amount will be $50. You will get this information from the broker’s site too.
  20. Am I charged any fee for withdrawing? This will depend on the account that you have. There are some that will enjoy a few free withdrawals but later they have to pay some percentage.
  21. Must I make a deposit for me to register? No, the cash will only be necessary when you want to start trading, not while registering.

 

 

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