Binary Options ("Binaries") are a simple way of gaining exposure to your chosen currency. Binaries allow traders to speculate on the direction of a given instrument by using either an "UP" trade or "DOWN" trade within your preferred time period.
You speculate that the EUR/USD pair is due to correct lower in the next hour and decide to place $100 'DOWN' trade. If EUR/USD falls as expected then you gain 70 percent of your initial deposit (or $170). However, if your view is incorrect and the market rises, you lose your whole initial outlay (or $100).
Between 70 and 80% potential return on successful trades.
Multiple Time Frames
Enjoy expirations of 1, 2, 5, 10, 15, 20, 30 and 60 minutes.
You can trade from as little as USD $5.
Controlled Risk Trading
You can trade according to your risk profile and understand your maximum downside before you even place a trade.
$500 trades acceptable on major currency pairs on 5 minute (and above) expiry times.
You can trade binaries directly from your MT4 platform.
The return on a successful trade depends on the time to expiry (contract maturity). For example, a trade with a 30 min to 1 hour expiry will yield 70% with percentage return increasing to 75% for a trade between 5 and 15 minutes. The highest return of 80% applies to a binary option with one minute expiry.
One of the benefits to trading binaries is your ability to understand your maximum potential downside from the outset, without unforseen occurrences such as slippage. This means if you have chosen to trade to the value of $50, this is the maximum you can lose regardless of the market conditions.
One of the most popular style for binary trading is the "Up/Down" binary option which asks the question of whether the underlying market instrument that you've chosen to trade will be higher or lower at the expiry time.
For example, you speculate that AUD/USD will be above 1.5060 in 60 seconds. If at expiry, AUD/USD rises and is now quoted at 1.5065, then you make a profit.
The "Short Term" binary options are the same as the "Up/Down" binaries, however they are set at shorter intervals (less than 15 minutes).
These type of binaries are designed for short-term trading as there is less space for error due to its small windows of volatility.
Due to the short-term nature of expiry on Binaries, they can be attractive to day traders and those who have limited time to trade, but still want to capture some market movements.
Binaries may appeal to different traders who:
Want attractive returns - trades with a 30 min – 1 hour expiry will yield 70% return. Trades with 1 minute expiry may yield 80% return.
Want to capture short-term market moves – select your trade expiry from 1, 2, 5, 10,15, 30 or 60 minutes time frame
Want transparent pricing – know the maximum potential loss even before you place a trade
Our binary prices are calculated using the GO Markets' Binary Pricing Algorithm which basically provides a quote based on the underlying spot price of the currency and adjusted according to the time until expiry.
Please keep in mind that other factors such as market volatility may also affect the price provided to you. In addition, the price in which you deal is not governed by an underlying exchange or market, but set by GO Markets.
Because GO Markets sets the price, we cannot offset or ‘hedge’ your position in the same way we can across other trading instruments (FX, Commodities and Indices). GO Markets are therefore exposed to the outcome of your binary trade.
Whilst binaries may be deemed as ‘limited risk’ in nature (given the margin required is the maximum you can lose), it in no way ‘limits’ the traders ability to take multiple trades and sustain multiple losses. As with all trading instruments, GO Markets encourage our clients to carefully assess the risks associated.
Please Note: Binary Option EAs are not supported on 1 and 2 minute expirations or on our demo platform. Binary Option EAs that result in transactions flooding of our systems will be blocked to prevent service disruption to our other clients.
If you already have a GO Markets' live trading account and trade Forex with us, simply register yourself below to gain access to Binary Options and we'll send you instructions on how to get started today.
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(*) Before you can start trading Binary Options' on the GO Markets' MT4 trading platform, you will need an MT4 demo trading account which you can set up here. Furthermore, we also require you to submit your contact details.
Never traded with GO Markets before?
Head over to our Forex demo page and download the MT4 demo platform.
Once you have downloaded and installed the platform you will be able to download the Binary Options plugin by filling out the form in the 'Existing Clients' tab on this page.
Trading Forex and Derivatives carries a high level of risk, including the risk of losing substantially more than your initial expenditure. Also, you do not own or have any rights to the underlying assets. The effect of leverage is that both gains and losses are magnified. You should only trade Forex if you can afford to carry these risks.
GO Markets Pty Ltd does not guarantee the performance or return of capital. You should only trade in risk capital (that is, capital you can afford to lose). Please note that the historical financial performance of any underlying instrument/market is no guarantee or indicator of future performance.
Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Financial Services Guide (FSG) and Product Disclosure Statement (PDS) for our products are available from GO Markets Pty Ltd to download at this website or here, and hard copies can be obtained by contacting the offices at the number above.
Please also note that your call may be recorded for training and monitoring purposes. Any advice provided to you on this website or by our representatives is general advice only, and does not take into account your objectives, financial situation or needs. You should therefore consider the appropriateness of our advice before making any decision about using our services. You should also consider our PDS documents before making any decision about using our products or services.
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