Agent Pension Questionnaire

Up or Down

Binary options trading requires the trader to speculate on whether the price of an asset, (a product traded on the financial markets, e.g Facebook stock or the Euro), will rise or fall within a given time frame.

Basically, the trader asks a very simple question. Up, or down?

Unlike traditional options, where the payout is based on the price of the option at expiry, and each increment that the asset continues to rise or fall can have a huge impact, binary options are all or nothing, where correctly predicting the direction is all that matters. There are only two possible outcomes with binary options, also known as Digital or Fixed Rate Options (FROs). The possible payout is already fixed at the time of opening the trade. With traditional options, there is no way to know in advance how much will be risked or earned on a trade, but with binary options the trader knows in advance, and can control, the exact level of risk involved. The trader is given the option to select the risk percentages for every trade, determining for example that they would prefer a 65%:20% return ratio, or a 70%:10% payout, with a 70% return on an in-the-money outcome and a 10% return on an out -the-money result.

Pick and Mix

Binary options traders can pick from a range of up to 180 assets when deciding what to trade, including currencies, commodities, stocks and indices. Multiple trades can be open at the same time, each for a different type of asset, or the trader can choose to focus on a single trading product.

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