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Binary Options Types

Call / Put

Make a prediction about where the market will be at expiry compared to the current price: up ("Call") or down ("Put").
If you're right, you can earn up to 100% profit on the trade.

At 15:00 the rate of the USDJPY pair on the currency market is 119.088 JPY per USD. You expect the price of the asset to rise over the course of the following hour. You select a Call / Put binary option contract on USDJPY that expires at 16:00. Since you expect the price to rise, you choose an CALL option, investing 300 USD.

At 16:00 the price of USDJPY has risen to 120.048, meaning your prediction turned out to be correct. Since the Payout on the option is 90%, you earn 270 USD on the trade: 300 USD × 90% = 270 USD.

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Touch

Choose whether you would like to have a boundary placed at a price level above or below the current price. If the market price reaches this boundary level before expiry, you can earn up to 100% profit on your trade.

At 11:45 gold is trading at 1,600 USD per ounce. You expect the price to reach 1,625 USD per ounce within the hour, so you select a Touch option on gold with 95% profitability that expires at 12:45. Once you have selected this option, you see the following 3 price levels:

  • 1,625: the upper price boundary
  • 1,600: the current price of gold
  • 1,580: the lower price boundary

Since you expect the price of gold to rise to 1,625 USD, you choose the "UP" option, investing 200 USD.

Over the course of the hour, the price of gold breaks the upper price boundary of 1,625 USD, eventually reaching 1,627, before dropping down below the price at the time the trade was placed.

Since you chose a Touch option, it doesn't matter that the price was down at expiration – all that matters is that the price broke the 1,625 USD upper price boundary. Since your forecast was correct, you earn 190 USD on the trade: 200 USD × 95% = 190 USD.

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Range

Choose whether the price will go up or down within a given range that will appear either above or below the current price. If the prediction is correct, then on expiry the profit is 100%!

At 18:05 EURUSD is trading at 1.3020. You expect the price to drop a few pips over the course of the next 5 minutes. Accordingly, you choose a Range option with a 95% Payout on EURUSD that will expire at 18:10. Once you choose this option, you see 3 price levels:

  • 1.3027: the upper price boundary
  • 1.3020: the current price of EURUSD
  • 1.3012: the lower price boundary

By 18:10 the price of EURUSD has dropped to 1.3014, 6 pips below the market price at the time you placed the trade, but still above the lower price boundary of 1.3012.

Since the price dropped, but didn't drop beneath the lower boundary level, you earn 950 USD on the trade: 1,000 USD × 95% = 950 USD.

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Spread

Predict if the price will be above or below the price level offered by the company at expiry. If the prediction is correct, then on expiry the profit is 100%!

At 12:10 (EET), soon after the opening of the UK stock market, the GBPUSD exchange rate is at 1.65000, and is showing steady growth.

Predicting that the growth will continue, the investor decides to trade a Spread option, using GBPUSD as the base asset. Your investment is based on the idea that at 13:00, when the option expires, the price will be above the offer level at 1.65030.

You invest 500 USD, choosing "CALL".

At 13:00 (EET), the price of the GBPUSD instrument has risen to 1.65500, meaning that your prediction was right.

You make a profit of 500 USD × 100% = 500 USD, the investor has doubled their funds

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Attention:

Payout is expressed as a percentage of the original investment sum. The trader will recieve the payout if his forecast turns out correct. The potential profit size of a binary option is variable and depends on the market situation. In thin or fast markets, trading conditions may be altered and some option types or time frames may be inaccessible.

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