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Binary Options Basics

  • What are the trading platforms available?

    BDB offers 4 different, award-winning platforms so that you can choose the one that meets your trading needs.

    1. Digital Option Pro - the standard platform, easily accessible for new and experienced traders alike.
    2. Long Term – allows you to place long term trades based on your wider view of the global markets and trends.
    3. 60 Seconds - the quickest way to trade online, offering quick results and rewards.
    4. Pairs - lets traders pit two assets against each other and forecast how they will perform.

    For more details on the different trading platforms, please visit our Education Center.

     

  • How can I watch the free videos?

    Log into our website, go to our education section where you can find free video courses.

  • What information will I get after registration?

    We have a vast amount of training material available on our website.  Please visit our Education center 

  • What is the expiry level?

    The expiry level is the level of the underlying asset at the time of expiry of the asset according to Reuters. This is the determining level with regards to whether the option has expired in-the-money or out-of-the-money. A different expiry level is determined for each underlying asset.

  • What is the difference between Call and Put?

    Call is the direction of the rate going up and Put is the direction of the rate going down

  • How can I recognize trends?

    There are different techniques that traders can use to recognize market trends and determine whether an asset is moving up or down. Some monitor the charts and graphs, while others follow the latest news and events.

    For more information on analyzing trends, take a look here.

    To stay up-to-date with the market news, read BDB's Daily Market Review.

  • What are currency pairs?

    Just as when you go abroad and exchange one currency for another, so when trading, currencies are always traded in pairs.

    For example, the EUR/USD reveals the relative strength of the Euro against the US dollar, i.e. how many dollars you can buy with 1 euro.

    The value of the pair will rise if the Eurozone economy is performing well and/or if the US economy is performing badly.

    Check out our Education Center for more tips.

  • What is rollover?

    Rollover allows you to extend the expiration time for a fee of 30% of the initial investment:

    x2 allows you to place the exact same trade for the strike price of the moment when the new trade is placed.

  • What is "sell position"?

    The sell tool allows the client to sell the opened trades early if the buyer (another trader or our liquidity providers) is found and the Sell early tool is available.

    You will be offered a price and will have 3 seconds to either accept or decline the offer.

    (Please note that this is a risk management feature, as the client will not be able to sell their options early for a profit, rather only to retain some of their initial investment).

  • What is an underlying asset?

    This refers to a commodity, index, stock, currency pair or any other financial asset that constitutes the basis for creating an option.

  • Why binary options?

    The attractiveness of fixed risks and rewards has led to binary option trading enjoying an explosion in popularity. The inherent simplicity of having just two possible options and two possible outcomes for every trade is far from the volatility and complex factors associated with traditional investments. Investors are able to make informed trades and wiser financial decisions.

    Binary option trading typically has a shorter term than traditional investing, sometimes as quick as just 60 seconds, allowing for repeated trades and successes. Furthermore it enables investors to take advantage of both bull (upwards) and bear (downwards) market trends.

  • What is a binary option?

    A binary option, also known as a digital option or an all-or-nothing option, is a financial instrument where the trader has two positions to decide between: will the value of an asset go up or will it go down over a set period of time? Depending on whether the trader is correct or not, the payout is a predetermined price or nothing.

    For example, if a trader assumes a position that the value of gold will increase in a given period of time, and is correct, he/she wins a fixed payout. If the value of gold drops however, the trader loses the entire amount of the investment. It does not matter if the asset exceeds the original price, the strike price, by $1 or $100: the payout is the same.

  • What are the main trading strategies?

    The most popular strategies include:

    1) The Reversal Strategy - if an asset moves strongly in one direction, it is likely to correct itself. Learn to read the charts here  and spot the highs and lows, great points to open a trade.   

    2) The Knock-on Strategy - the price of an asset often affects other related assets. For example the change in value of a stock may impact the index it is traded in. Here are the key correlations.  

    3) Diversification - every good trader knows that diversifying your portfolio is essential for risk management. Find out more here.

  • What are the tips for successful trading?

    Before you place a trade, it is important to analyze the asset you are trading and understand which direction it is moving.

    We recommend that traders follow the economic news and trade assets with which they are familiar. It is also sensible to diversify your portfolio and trade a selection of assets rather than placing larger sums on just one asset and trade.

    For more trading and analysis tips, click here.

  • What types of assets do you offer?

    BDB offers over 200 assets to trade on from 30 different countries.

    These assets include the stocks of public companies and brands (eg Apple, Disney, Google), international currency pairs (eg EUR/USD, AUD/USD), tradable metals and commodities (eg old, gold, coffee), and groups of stocks known as indices (eg DAX, NASDAQ).   

    For the full list of assets we offer, please look here