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Introduction To Binary Option

Trading binary options at OneTwoTrade is very simple. Regardless of your background and your knowledge of the financial markets, you can make exceptional profits.

When trading SmartOptions, keep these four basic components of binary options in mind.

  1. The Asset

    The asset refers to anything that is traded on a global market. An asset could be anything from shares in a company such as Microsoft or Google, to commodities, such as coffee or oil. OneTwoTrade enables you to buy SmartOptions for just about any asset you can find, but we typically have SmartOptions available for the most common or popular assets.

  2. The Direction

    The direction, which is labeled as “will finish”, is your prediction as to how the asset’s price will finish at the selected expiry time. You buy an Up Option if you believe the price will close higher than the current price, and vice versa, if you believe the price will close lower than the current price.

  3. The Expiry Time

    The expiry time is a critical component of the SmartOption. The expiry time is the point where the SmartOption ends and your position is deemed successful or not. OneTwoTrade allows you to choose from a range of expiry times, but most commonly, we feature expiries every 30 minutes. SmartOptions can be bought up until ten minutes before expiry, excluding 60 second options.

  4. The Trade

    You can trade anything from £10 to £1500 depending on how much risk you want to take, or how big of a payout you would like to receive.

Trading is engaging in the financial markets that seek to outperform traditional buy-hold-sell trading opportunities. Rather than seeking profits from long-term growths in the markets, traders look for short-term price movements to book profit in both rising and falling markets.

One of the most innovative and popular formats of short-term trading is called Binary Options. Trading with these options is called Binary because there are only two possible outcomes to the trade.

Binary Options is an innovative trading model that gives you the opportunity to make higher returns in a very short period of time. Trading with Binary Options is making a simple prediction as to whether or not the price of an asset will rise or fall – you are credited your returns instantly once the trade expires. 

Because Binary Options are traded online, all you need is an Internet connection and a trading account. Once you make the deposit on the platform, you are just a click away from trading.

Once you select an asset to place a trade on, you will have two trading options to choose from: You can either CALL or PUT an asset. Then, confirm your action and your option is live. That's it! The trade will expire at the time you chose and then you'll get credit on your returns. 

Unlike a number of other trading formats, Binary Options are simple to trade. However, because assets are priced in real time through active bidding, there are specific techniques known as Call and Put.

By forecasting the trend of the asset and anticipating the rise or fall of the asset's price, you can beat the market and earn up to 85% returns on your trades.

OneTwoTrade offers unparalleled support on every step of your trade by featuring daily market reviews and analysis so that you can always be a step ahead. We have the right tools and an in-depth knowledge library to walk you through the basics of trading on Binary Options.

Binary Options are the simplest way to take advantage of short-term market movements.  

Open your free account and start trading today.

Trading with Binary Options is fundamentally making a simple prediction as to whether or not the price of an asset will rise or fall.

To trade you will need to buy one of the two options. Your first option is called a “Call" which you can buy when you expect the price of that asset to go up. However, if you predict that the price of that asset will fall, then you buy a “Put" option. 

With each trade, there are two key pieces of information to remember. First is the “Strike Price." This is the current rate of the asset, which will determine whether your trade expires in the money or out of the money. Second is the date and time of expiry. With Binary Options, expiration can be as short as 60 seconds or as long as a month. 

For example: At 2:00 p.m. the EUR/USD rate is 1.3200 and you predict this asset will close above 1.3200 within the next hour (i.e. at 3:00 p.m.)  All you need to do is choose the expiry time, (in this case it will be 3:00 p.m.) and the amount you would like to invest and click “Call.” The “Strike Rate” for this asset will be 1.3200, and if your prediction comes right and the asset closes at 1.3201 at 3:00 p.m., you win the trade and your investment plus profit will reflect in your account instantly.

With OneTwoTrade, you can trade on top assets from across the global markets.

These are the four most popular Binary Option Assets available to trade with: currencies, commodities, indices, and stocks.

  • Currencies cover all the top currency pairs such as EUR/USD, JPY/USD, EUR/GBP, etc. We have the top 12 Forex pairs you can trade on 24/5.
  • Indices lists the top indices in the world, such as NASDAQ, DAX, DOW, FTSE, S&P. We have a total of 15 indices available from North America, Europe, and Asia.
  • Stocks encapsulate top stocks from across all markets, such as APPLE, GOOGLE, FACEBOOK, MASTERCARD, AMAZON, TOTAL, RIO TINTO, etc. summing up to 45 top blue chip stocks.

Commodities cover the top commodities such as gold, silver, oil, coffee, and platinum.

If you previously traded Forex or its more volatile cousins, crude oil or spot metals (such as gold or silver), you probably learned one thing: these markets carry a lot of risk and it is very easy to blow off the market. Traders have to battle a variety of parameters that affect trade outcomes. Leverage, margin, news events, slippages and price re-quotes are factors that can affect trade negatively. This is why trading the currency and commodities markets is a very risky venture. With binaries, there is no leverage to contend with and phenomena such as slippage and price re-quotes have no effect on Binary Option trade outcomes. 

Futures, Forex, commodities and classical options are always traded with some costs; you will either pay them through a bigger spread or through separated commissions. In certain markets, you will also have to pay for the data feed and in certain cases, you also pay for the trading platform. All this lowers your profit which is something you must take into account.

With Binary Options, you have no commissions or other fees. In terms of profits and losses, what you see is what you get. The trading platform and data are free, as well as your trading, which is free of commissions and any other fees. 

OneTwoTrade created an accessible platform offering conversational web-based trading via your desktop, laptop, tablet or mobile. This means you can trade on the go, making it easy for you to check your options on a regular basis. In addition, assets are traded internationally, which means that at least one market somewhere around the world will be open, making Binary Options trading at OneTwoTrade a 24/7 affair.