Binary options also called digital options or fixed-return options (FRO) are a simple way to trade price fluctuations in a wide range of financial markets. Binary options have different profits, costs, risks, liquidity structure and investment processes than the traditional (vanilla) options. The key distinguishing features of binaries are:
  • Easy to trade — simple and straightforward to understand;
  • Predetermined payouts and risks — unlike a traditional vanilla option, the possible gain is binomial, predefined and works as "all-or-nothing";
  • Payouts — In-the-money contracts yield returns up to 90% of the paid premium/contract amount;
  • Payout/Refund trade-off — traders may select between a set of combinations for a better match to their risk tolerance or trading strategy;
  • Small trading amounts, low deposit required — binary options contracts/premium with Dukascopy Bank start from as low as USD 1;
  • No commissions — Dukascopy Bank charges no fees in addition to the premium paid by the trader;
  • Numerous strike prices and expiry dates — for call/put binary options the strike price is the price at the start of the option contract.
Binary options offer a non-linear return and a way to gain up to 90% of the initial investment/premium if the contract terminates In-the-money.Entering in binary options is speculative and involves the risk of losing your entire investment. You should only trade money you can afford to lose entirely.
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