Get the best parts of DailyFX.com in the new DailyFX App
Binary options offer a way of speculating on a diverse range of assets and events, with clearly defined potential profits and loss at the outset.
They're based on a straightforward yes/no proposition, for example, 'Will the price of crude oil be above $55 by 4pm today?'
If your answer is yes, you'd buy the binary at a set price, between $0 and $100. If you think no, you'd sell. The more likely that the proposition will prove correct, the higher the buy price will be. Binaries are so named because they close at either 100 or 0. So if you placed a buy order and at 4pm, crude oil is above $55, you'd receive the $100 payout. But if not, you receive zero.
Once you have a basic understanding of how to trade binary options, you can start to support your trading with a range of binary strategies.
Check out our five-minute introduction to trading binaries below.
A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment.
Past performance is no indication of future results.
FX Publications, Inc. operates DailyFX - the news and education website of IG Group. Registered Address, 32 Old Slip, Suite 803, NY, NY, 10005. FX Publications Inc. is a Guaranteed IB of IG US LLC and member of the National Futures Association (NFA ID:0517400).