You are on page 1of 74

Banc De Binary

The Ultimate Guide to Binary Trading


Table of contents
Foreword ............................................................................................................. 6
Letter from the CEO .......................................................................................... 8
Binary options 2011 ........................................................................................ 10
Introduction to Banc De Binary
Were the global leader in binary options trading .................................. 12
We dont think of it as a history, we think of it as a legacy .................... 13
A breadth of truly global assets ............................................................... 14
Client service thats second to none ........................................................ 15
Banc De Binary is on your side ................................................................ 15
Introduction to binary options ..................................................................... 16
Binary options basics
The asset ................................................................................................... 18
The contract .............................................................................................. 18
The prediction .......................................................................................... 19
Amount staked ......................................................................................... 19
Who trades binary options?
Professional organizations ...................................................................... 21
Individual traders ..................................................................................... 21
The asset ................................................................................................... 18
The contract .............................................................................................. 18
The prediction .......................................................................................... 19
Amount staked ......................................................................................... 19
Professional organizations ...................................................................... 21
Individual traders ..................................................................................... 21
The asset ................................................................................................... 18
The contract .............................................................................................. 18
The prediction .......................................................................................... 19
enehts of trading binary options
All conditions trading ............................................................................... 22
High return ............................................................................................... 23
Calculated risk .......................................................................................... 23
Tax exempt ............................................................................................... 23
Wide availability ....................................................................................... 24
Any time, anywhere trading .................................................................... 24
Simplicity .................................................................................................. 25
Small investment friendly ........................................................................ 25
How to trade binary options ......................................................................... 26
Making a trade ......................................................................................... 27
Type of binary options ............................................................................. 28
Digital binary options .............................................................................. 28
One touch options ................................................................................... 29
Analyzing binary options
Introduction to technical analysis ........................................................... 30
Trend following ........................................................................................ 31
Momentum ............................................................................................... 31
Mean reversion ........................................................................................ 32
Pattern recognition .................................................................................. 33
Support and Resistance ........................................................................... 33
One touch options ................................................................................... 29
Introduction to technical analysis ........................................................... 30
Trend following ........................................................................................ 31
Momentum ............................................................................................... 31
Mean reversion ........................................................................................ 32
Pattern recognition .................................................................................. 33
Support and Resistance ........................................................................... 33
Introduction to technical analysis ........................................................... 30
Trend following ........................................................................................ 31
Introduction to fundamental analysis
Fundamental analysis considerations ..................................................... 34
Company Information .............................................................................. 35
Industry News ........................................................................................... 36
Natural Events .......................................................................................... 36
Fear Factor ................................................................................................ 37
Market Conditions .................................................................................... 37
Economic Performance ............................................................................ 38
Economic Indicators ................................................................................. 39
Binary options trading strategies
Reversal ..................................................................................................... 40
Trend Reversal .......................................................................................... 41
Straddle ..................................................................................................... 42
Knock-on effect ......................................................................................... 43
Risk management
Analyze and research ............................................................................... 44
Learn from your mistakes ........................................................................ 45
Follow trends ............................................................................................ 45
Risk and reward ........................................................................................ 46
Familiarity ................................................................................................. 46
Limiting your trades ................................................................................. 47
Choosing a binary options broker
Trading platform ....................................................................................... 48
Ease of use ................................................................................................ 49
Keeping it safe .......................................................................................... 49
Service and support ................................................................................. 50
Trading platform ....................................................................................... 48
Ease of use ................................................................................................ 49 Ease of use ................................................................................................ 49
Keeping it safe .......................................................................................... 49
Service and support ................................................................................. 50
Analyze and research ............................................................................... 44
Learn from your mistakes ........................................................................ 45
Follow trends ............................................................................................ 45
Risk and reward ........................................................................................ 46
Familiarity ................................................................................................. 46
Limiting your trades ................................................................................. 47
Trading platform ....................................................................................... 48
Ease of use ................................................................................................ 49
Keeping it safe .......................................................................................... 49
Service and support ................................................................................. 50
Analyze and research ............................................................................... 44
Learn from your mistakes ........................................................................ 45
Frequently asked questions ......................................................................... 52
Taking a trading bonus pros and cons ....................................................56
Banc De Binary types of trading bonus
Deposit matches ...................................................................................... 58
Sign-up bonus .......................................................................................... 58
Banc De Binary rebate bonus ............................................................... 59
Refer a friend ........................................................................................... 59
Personal broker program
Program features ..................................................................................... 60
VIP Platinum program and platform ........................................................... 62
Amliate program ............................................................................................ 64
CPA payment plan (monthly) .................................................................. 65
Revenue share plan ................................................................................. 65
Super ihterhal afliate tiered revehue share plah ................................. 65
Banc De Binary platform rates ..................................................................... 66
Platform security ............................................................................................ 68
Deposits and withdrawals with Banc De Binary ........................................ 70
Types of accounts ........................................................................................... 72 ........................................................................................... 72
............................................................................................ 64
CPA payment plan (monthly) .................................................................. 65
Revenue share plan ................................................................................. 65
................................. 65
..................................................................... 66
............................................................................................ 68
........................................ 70
........................................................................................... 72
CPA payment plan (monthly) .................................................................. 65
Revenue share plan ................................................................................. 65
plah .................................
6
Dear Valued Trader,
Welcome to the exciting world of binary
options trading, one of the fastest
growihg sectors of the fhahce ihdustry.
Foreword
In this e-book, well provide you
with the basic information you
need to start trading. The basics can
be learned within a few minutes.
However, there are numerous
advanced strategies that traders
and investors can utilize in order
to increase the probability of high
returns on their investments. In
addition, well cover the different
types of binary options trading
available on the market, and
ihtroduce you to the behefts of
trading with Banc De Binary.
Established in 2009, following the
ma|or fhahcial crisis of the last
decade, Banc De Binary has grown
exponentially to become a world
leading binary options broker. We
offer an exceptional trading platform
where investors can trade binary
options in a low-risk, informed, and
safe environment.
Our trading platform is designed to
be easy to use, while still powerful
enough to offer unique money
management features, such as
fast and convenient access to the
Forex, stock, and commodities
markets, advanced research tools,
and account maintenance, all
in one consolidated web-based
environment. No software to install,
just login and take action.
We are proud to describe our
brokers as the best in the industry.
Our stringent recruitment process
ensures they are of the highest
calibre. We provide them with the
best technologies and analytical tools
available to ensure their split second
decisions are as accurate as possible.
In addition, your money is in your
hands. You choose the options and
are always in control. Our expert
team of brokers is simply here to
advise and assist whenever you need them.
Foreword
Your money is in your hands.
You choose the options
and are always in control.
For more information, please contact us at
support@bbinary.com
or call us directly at
1-(800)-656-6163
Wishing you every trading success.
Sincerely,
The Banc De Binary Team
Banc de Binary
7
8
Letter from the CEO
Id like to take this opportunity
to share my enthusiasm and
excitement for the innovative, state-
of-the-art investment, trading and
banking enterprise that is Banc De
Binary.
Over the past few years, it has
become apparent that the old ways
of doing business in this increasingly
ihtercohhected fhahcial world are
no longer viable. For the hundreds
of banks, brokerages, investment
houses ahd other fhahcial
concerns that foolishly cling to the
obsolete models of conducting
their business, the result has been
chaos, devaluation of assets and
equity, and in many cases, oblivion.
Unfortunately, this trend persists to
this day as we continue to see bank
failures, defaults and depreciating
value of many of the biggest names
in banking over the past 50 years.
For those that refuse to see or
do not comprehend the changes
in global economics, business,
investment and trading, the future
holds little promise. For the rest of
us who maintain a constant focus
on advancements in technology,
communications and new product
development, the future is bright,
inspiring and awesome in its
potential.
At 8ahc De 8ihary, we are frmly
committed to developing and
delivering cutting edge products,
services and security in a world that
demands constant innovation and
attention to the needs of the modern
investor and trader.
As such, you will notice that the
performance, products, trading
platforms, customer service and
educational tools at Banc De Binary
are evolving on an almost daily
basis, with continuous upgrades
and enhancements to our online
global operations. With that in mind,
please know that each and every
Banc De Binary customer is our most
important customer and that we are
here to serve you 24/7, with regard
to any and all of your banking and
trading needs.
Oren Laurent
Dear Valued Customer,
Welcome to our global online banking community.
9
Banc de Binary
Letter from the CEO
The future is bright,
inspiring and awesome
in its potential..
10
In the past couple of years, binary
options have carved out a niche that
focuses on straightforwardness,
known risks, and a de-emphasis
on volatility. Many of the other
asset classes in todays markets are
quite different. They involve a large
amount of painfully complex factors,
which increase the margins of error
and the likelihood of costly mistakes.
Todays markets are quite different
from fhahcial markets of the past.
The digital age has revolutionized
them, allowing for an explosion in
asset types, contracts, and strategies.
While this can be seen as a positive
in that it provides opportunities for
wealth creation, more frequently,
it has set the average trader at a
disadvantage. Large institutions with
many resources at their disposal
(namely, specialized personnel and
computing power) have an advantage
over the competition. They quickly
capitalize upon traditional asset
trading opportunities far before the
best retail investors are even aware
of them.
In combination with rising volatility
and a staggering increase in the
number of investment vehicles
available in recent years, it is easy
to see why many retail investors
fhd themselves overwhelmed by
todays market. In fact, many view
the idea of speculative trading as far
too risky and riddled with hidden
complexities. In a sense, theyve
been unduly pushed out of the
market.
Binary options enable investors to compete
in the toughest market conditions.
Binary options
11
Binary options enable investors to compete
in the toughest market conditions.
These circumstances are precisely
why binary options are such an
exciting development. Brokers
choose well-researched and
understood underlying assets, giving
retail investors information access
that rivals the professionals. Perhaps
most importantly, risk calculation on
binary options is understandable.
With more traditional assets, every
single price movement affects
potential gains and losses. When
additional complications such as
leverage are factored in, its easy for
a prospective trader to lose track of
their exposure in a given investment.
However, with binary options, the
set price and all or nothing nature
of outcome brings risk out of vague
territory ahd ihto the fgurative light.
With exact risk known, binary options
traders are able to make wiser
decisions about money and account
management. Not coincidentally,
these are the areas where traditional
asset traders often stumble and
lose. By eliminating these added
entanglements, binary options give
traders the ability to focus solely
on making correct predictions and
consequently, making money.
Banc de Binary
12
In 2008, the SEC approved the
listing of binary options. This ruling
led Banc De Binary to successfully
predict a period of growth in binary
options trading.
Our vision was to be the pioneers of
a new kind of bank, one focused on
providing high quality binary options
trading services and solutions to
both the experienced trading
professional and those new to this
market.
The Banc De Binary Pro Platform
utilizes the latest technology to offer
bahkihg ahd fhahce to a wide rahge
of customers, including corporations,
hedge funds, individual investors,
banks and governments, in a simple
yet secure online environment.
Banc De Binary provides its clients
with a unique value package: state-
of-the-art technology; extensive
knowledge and unparalleled service
levels from our highly skilled team;
alongside a modern and accessible
rahge of fhahcial services ahd
products.
Were the global leader
in binary options trading
Introduction to Banc De Binary
Introduction to Banc De Binary
Our goal is to bring fair and equitable
pricing and order-handling practices
to all our clients.
We dont think of it as a history,
we think of it as a legacy
With a legacy of over 100 combined
years in the foreign exchange
markets, Banc De Binary is a leading
global fhahcial services compahy.
We service more than 20,000
customer accounts and operate
in over 80 countries, providing
consumers, corporations and
institutions alike with a broad range
of fhahcial products ahd services,
including private banking, corporate
and investment banking, securities
brokerage and wealth management.
Introduction to Banc De Binary
Banc de Binary
14
A breadth of truly global assets
Banc De Binarys trading platform
offers more than 90 assets, which
constitutes the widest set of tradable
assets currently available from any
provider. With trading activity in over
80 countries, we can offer emerging
market and other less liquid
currencies. This widens the range of
tradable currencies, commodities,
stocks and indices that you can
choose from. Further, with a VIP
account we can add any asset within
two business days.
Ma|or behefts of tradihg ih the
binary options market include the
diversifcatioh ahd opportuhities
created by reduced correlation
with other asset classes. Trading
in emerging market currencies,
commodities, stocks, and indices
offers further opportunities as their
performance is linked to other
underlying factors unique to those
countries. For example, if strength
is perceived in certain commodity
prices, it would be helpful to have a
wide set of currencies on offer, from
Australian and Canadian dollars to
the South African rand, Mexican
peso, and several other currency
pairs.
Banc De Binarys Pro Platform offers
liquidity ih several Asia-Pacifc,
Middle Eastern, Eastern European
and Latin American currencies. For
more information on the full breadth
of currencies on offer, access the
live chat option on Banc De Binarys
website (www.bbinary.com) and
speak to a broker.
Introduction to Banc De Binary
15
Banc De Binary offers 24/7 service via dedicated specialists who are trained
to look after our clients trading and administrative needs.
Cur ihvestors have repeatedly idehtifed clieht service as a truly
differentiating key feature from our competition. We believe high-quality,
personalized service is central to our offering and we always welcome
suggestions to further improve our levels of service.
Client service thats second to none
Banc De Binary is on your side
Banc De Binary has deployed best
practices developed over decades of
asset trading into its Pro Platform.
Banc de Binary
16
Based on exotic options, which are
only traded on private markets,
binary options are traded over the
counter and are available 24 hours a
day, 7 days a week.
A binary option, also known as a
digital option or an all-or-nothing,
is a tradihg ihstrumeht with a fxed
return that is determined at the
outset of the trade. A trader will
receive a predetermined payout if
the binary option expires in-the-
money. He will lose a predetermined
amount of his original stake
if the option expires
out-of-the-money.
The beauty of trading binary
options is the inherent
simplicity. If a prediction is
correct, the trader receives
a refund of the stake plus a
return on investment that
is typically 71-88%. If the
trader is wrong, Banc De
Binary will return a small percentage
of the original stake.
All markets - currencies, stocks,
commodities, and market indices -
can be underlying assets for binary
options. The degree to which the
option closes in or out-of-the-money
does not matter as it does with a
traditional option.
Binary options are high return,
short-term investments
Introduction to Binary Options
Introduction to Binary Options
17
Banc de Binary
The beauty of trading binary
options is the inherent simplicity.
Unlike traditional options, binary
options do not have set prices: the
trader decides upon the amount of
money he wants to risk and invests
that amount when he buys the
option. Furthermore, the shorter
duration of these contracts makes
binary options more suitable for
short-term trading than their
traditional counterparts.
In the past few years, online
binary option trading has grown
exponentially. Digital trades can
utilize many more underlying assets,
ahd have much more fexibility
in their timing, strike prices, and
contract options. Since 2009, they
have become very popular among
traders as a way to control risk in
options trading, in turn allowing
for more dynamic strategies to be
developed.
Finally, constantly evolving
technology better facilitates digital
trading and allows investors to make
more lucrative trades.
Introduction to Binary Options
18
Binary Options Basics
1
Each binary options trade is based on an asset
selected by the trader.
These are known as underlying assets, since
the trader doesnt buy the assets and therefore
never actually owns them.
All binary options brokers offer their own range of assets
to traders, such as stocks, commodities, currency pairs
and market indices. Some brokers may offer only a
limited range, which will restrict trading opportunities.
Although a trader may opt to specialize in an asset
or a group of assets with which he is familiar, the
ability to trade a wide range of assets offers increased
opportuhities to proft.
Che of the key behefts of bihary optiohs is simplicity.
Binary options trading is relatively easy once the
parameters of the trade are understood.
Each binary option is based on four distinct components:
The asset
Binary Options Basics
19
Banc de Binary
2
Each binary option trade is a contract and each
contract has a set expiration time. Although
many types of traditional trading require an
investment for several months or years before
a reasonable return is achieved, in the case of
binary options, trades can expire in a matter of weeks,
days, hours or minutes.
Using Banc De Binarys trading platform, an option can
be purchased up to fve mihutes before it expires. It is
important that the trader always knows just how much
time is left before the option expires so that he can
improve his chances of making an accurate prediction.
The contract/time of expiration
3
The job of a binary options trader is to
determine in which direction the price of
an asset will move before or at the time of
expiration. For the simplest binary options
trades, the forecast will be based on whether
the price at expiry will be higher or lower.
The trader will purchase a Call option if he believes the
price will close higher or a Put option if he believes the
price will fall. A correct prediction will result in a return of
71-88% on investment nearly double the original stake.
The forecast or prediction
4
Each bihary optiohs trade is for a fxed amouht
that the trader specifes at the outset of the
trade. This puts the trader's mohey frmly ih
his hands at all times giving him the control to
minimize losses and maximize returns.
The amount that is at stake
20
Who Trades Binary Options?
For many years, binary options were
treated as simple over-the-counter
instruments. As a result, an actual
liquid market didnt exist, and there
was no regulation whatsoever in
place. Binary options were only
one small part of a larger complex
contract. Specialist brokers were
engaged to trade on the clients
behalf. Naturally, these brokers
charged a commission fee for the
service.
This all changed in early 2008, when
the SEC approved a rule change
allowing binary options to be traded
on major markets. In May 2008, the
American Stock Exchange became
the frst exchahge to publically
offer binary options, and the CBOE
followed suit in June of the same
year. Both of these market-traded
binary options are highly limited
when compared to the types of
binary options available to online
traders.
The greater availability of binary
options and the increasing number
of organizations that support them
have led to an exponential growth in
the number of people trading these
options. This number continues to
grow on a daily basis.
There are two trader types:
Trader types
Who Trades Binary Options?
21
Banc de Binary
Who Trades Binary Options?
Some of the organizations that operate as binary
options traders include options traders who have
diversifed their portfolio. They are attracted to
the potential for high volume trades giving the
opportuhity to achieve sighifcaht returhs ih a
relatively short timeframe. Additiohal behefts
include the availability of extensive assets to trade
and risks that are controlled, eliminating much
of the uncertainty associated with traditional
options trading.
Professional organizations
Individual traders
At the other end of the scale, individual
investors trade binary options due to
the provision of comprehensive trading
platforms and the availability of high levels
of support, information, and accessible
advice. Day traders in particular are
attracted to the fexibility of bihary optiohs
trading. Internet-based trading platforms
create a true 24/7 trading environment and
traders can access their accounts securely
any time anywhere, using any suitable
device with Internet access.
22
enehts of Trading inary Cptions
Binary options offer an extensive
rahge of behefts to all traders,
whether they are new to the market
or experienced professionals.
The simplicity of binary options
trading is perhaps the most
appealing factor compared with
their traditional counterparts. Every
situation is solely either gain or loss.
Therefore, to fhish ih-the-mohey, all
a trader really needs to predict is in
which direction the asset will move
before the time of expiration.
Additiohal behefts associated with
trading binary options include:
All conditions trading
In traditional options trading,
investors usually only make money
when markets and prices are rising.
However, a binary options trader
can make money in any market
conditions, because predicting a fall
is as proftable as predictihg a rise. Ih
fact, volatile markets offer increased
opportuhities to proft due to the
large swings that can occur in each
direction. The key is to be alert to
changes in market conditions, follow
the sighs ahd theh proft through
correct forecasting.
Trading foreign exchange enables
a trader to fhish ih the mohey by
forecasting a fall or rise in the value
of one currency against another.
With the constant changes to
rates and the number of available
combinations, this gives almost
limitless opportunities to achieve a
return.
All markets follow trends and a
trader cah proft oh ah up trehd by
buying Call options as well as buying
Put options when a downward trend
is underway. To reiterate, its simply
a matter of forecasting in which
direction a market will move.
8ehefts of Tradihg 8ihary Cptiohs
23
Banc de Binary
enehts of Trading inary Cptions
High return
Traditional investments usually
necessitate a long-term outlook, with
assets often held for months or even
years before a sighifcaht returh oh
an investment is achieved. Binary
options, on the other hand, are
short-term, high-return trades.
A typical option will expire in a
matter of hours or even less and
will often yield 71-88% if predicted
correctly. With a series of successful
trades, a trader can quickly
accumulate substahtial profts.
Calculated risk
Although an incorrect prediction
can result in the loss of a proportion
of the original stake, the trader can
determine at the outset what this
will be. Therefore overall exposure
can be relatively small, allowing
trading to continue until a return to
proft is achieved. This cohtrasts with
other forms of trading where large
amounts of money are at risk and
it is easy to lose control over how
much is at stake.
Tax exempt
Binary options brokers do not
withhold taxes from payouts.
Furthermore, the UK tax authorities
treat any gains from binary options
as tax exempt. This is a clear beheft
to all UK-based traders when
compared with other investment
vehicles. Some countries, such
as the USA, treat the profts from
binary options trading as short-term
capital gains. However, traders may
offset gains with any losses for tax
purposes.
24
Wide availability
Binary options are now an accepted
means of trading and are widely
quoted on markets, with a number
of brokers providing extensive yet
easy-to-use trading platforms that
any subscriber can access.
Banc De Binarys Pro Platform is
able to offer more than 90 assets
with trading activity in over 80
countries. This constitutes the widest
set of tradable assets currently
available from any provider.
Trading in emerging markets and
less liquid currencies offers further
opportuhities to proft as their
performance is linked to other
underlying factors unique to those
countries.
Any time, anywhere trading
Trading platforms generally provide
access to a variety of global markets
covering stocks, commodities, and
foreign exchange. This allows 24/7
trading with at least one market
generally open at most times.
Additionally, since most trading
platforms are web-based, traders
can access their accounts and make
trades using any device with Internet
access. This combination gives
traders the ability to trade however
they want, whenever they want and
from wherever they are.
8ehefts of Tradihg 8ihary Cptiohs
25
Banc de Binary
Simplicity
Whereas some types of investment
and trading can be complicated,
binary options trading provides a
straightforward process that involves
a number of simple steps. Traders
simply choose the asset they want
to trade, predict the direction of the
price movement by the stated time
and indicate the amount of the stake.
If the outcome is correct, the trader
will receive a payout in the region
of 71-88%. Further, binary options
do not require more than one pip in
order to be in-the-money.
Forex trading and other forms of
online trading require three pips just
to commence trading.
Small investment friendly
Unlike traditional investments,
which require a sighifcaht amouht
of capital upfront, binary options
traders can invest as little or as much
as they wish. No sighifcaht deposits
are required in order to start trading.
Iurthermore, careful diversifcatioh
can help build a buffer against
potential losses.
As stated earlier, your money is in
your hands at all times.
26
How to Trade
Binary Options
In order to trade binary options, a
broker is required. Not the specialist
broker of old who would trade on
an individuals behalf and charge
commission fees, but a modern
binary options broker, providing
a trading platform. This gives the
investor complete freedom to trade
at his convenience.
Havihg idehtifed a suitable platform,
the trader must open an account.
Several account types may be
available with different minimum
deposit requirements. The features
ahd behefts of each accouht should
be examined carefully in order
to choose the right ft. It is ofteh
possible to start small and then
upgrade to another account at a later
stage. Once the trader has registered
his details online and completed his
deposit, hes ready to begin trading
binary options.
How to Trade Binary Options
27
Banc de Binary
Making a trade
Making a successful trade involves a number of simple steps:
Choose the asset
Predict the Price Movement
Wait for the option to expire
Most trading platforms will have a
range of available assets. A trader
will generally select an asset type
with which he is familiar, whether it
is a stock, market index, commodity
or currency pair. For each asset,
the current price will be displayed,
along with the expiration time of the
option and the percentage payout
for a correct prediction.
The trader will select a Call option
if he thinks the price will rise by
the time the option expires or a
Put option if he expects the price
to fall. Alternatively, he may trade
variations, known as touch options,
which are explained later in this
chapter. All he needs to do is enter
the amount to be traded and
cohfrm the trade.
If the prediction is correct at the
time of expiry, the trader will
receive a return thats equal to his
initial stake plus the stated payout.
If hes wrong, hell receive a small
percentage of his original stake.
It is important to remember that
unlike Banc De Binary, some
platforms are really all-or-nothing. In
those cases, the whole of the original
stake will be lost.
28
Type of Binary Options
Digital binary options
These are the simplest and most
common trades and are sometimes
known as all-or-nothing options. As
described above, the trader is simply
predicting whether the price will rise
or fall by the stated expiration time.
An example follows:
Googles shares have a current price
of $535.50. The trader decides to buy
an option that expires in two hours
and pays a 75% return on success.
He stakes $100 on his prediction and,
at the end of the two-hour period,
the price stands lower at $534.10.
If he had purchased a Call option, he
would lose and receive a percentage
of his stake in return; if he had
purchased a Put option he would
proft ahd receive a returh of $175
(his original stake of $100 plus a 75%
payout).
As explained previously, the
incremental price movement
itself does not matter as it does
in traditional options trading.
The trader must correctly predict
whether the price will be higher or
lower at the expiry of the contract
the price may move in either
direction by as little as one pip.
How to Trade Binary Options
29
Banc de Binary
One touch options
A one touch option is a binary option
that pays off if the underlying asset
reaches a specifc level by a specifc
time. In this case, the trader is not
just choosing whether a price will
rise or fall by a stated time, he is
deciding whether it will touch a set
barrier at any time during the period
of the trade. Due to the additional
specifcity ihvolved, this type of
trading can attract returns as high as
500%.
For example:
The current commodity price is
$80.50 and the trader sets a limit of
$81.00. If he purchases a one touch
option, he will be in-the-money if
the price touches that level before
the option expires. When it does hit
the limit, the option closes and the
trader receives his payout; it doesnt
matter what happens to the price
after that. If the price does not reach
the stated level before the expiration
of the contract, the trader will lose
and forfeit his stake.
30
Analyzing Binary Options
To improve the chahces of accumulatihg cohsisteht profts from bihary optiohs
trading, there are two types of analysis that traders can employ: technical
analysis and fundamental analysis. Fundamental analysis looks at how outside
ihfuehces cah affect asset prices, techhical ahalysis focuses oh how a price has
moved in the past and how that can determine future movements. Both types
of analysis are essential tools for traders.
Introduction to technical analysis
Technical analysis is the study
of asset prices in the attempt to
determine the future direction of a
market. Traders who use technical
analysis tend to believe that the
majority of available information is
already incorporated in the value of
an asset. Consequently, prices will
always move in a consistent manner
and identifying the ways assets have
moved in the past will give a guide to
the way they will move in the future.
Much time and effort for technical
analysis is taken up with studying
charts. Practitioners believe that the
factors that ihfuehce prices, such as
the effects of supply and demand,
established trends, and other
elements are clearly visible in any
chart. Most price charts plot price
movements over time or by volume
of trades. Charts are often formatted
via a trend line so that price direction
can be easily read. Bar charts or
candlestick charts are also used to
display the high, low, open and close
prices for each period.
Technical analysis can be particularly
helpful in assisting an investor with
entering, exiting, and managing
the risk of positions. A number of
analytical tools are available as
described below.
Analyzing Binary Options
31
Banc de Binary
Trend following
Trend following analyzes historical
data in order to establish whether a
sustained movement in a particular
direction is occurring. This normally
involves looking at different periods,
such as 2-day and 7-day moving
averages. If the moving average
for the shorter period crosses
sighifcahtly above or below that for
the longer period, then an upward or
downward trend has developed.
Momentum
Tracking momentum is sometimes
known as Moving Average
Convergence Divergence (MACD)
and determines whether an assets
momentum is rising or falling. It is
used to track the daily changes in
short-term and long-term averages.
If the short-term averages are larger,
momentum is increasing, while
larger long-term averages suggest
a decreasing momentum. Slowing
momentum indicates the rate of
change will decrease and may
eventually reverse.
32
Mean reversion
Mean reversion involves identifying
an assets mean and then
determining if the asset price is
settling back to that point. It is rather
like testing a rubber band to see how
far it will stretch before it snaps back.
Analysts employ technical indicators
such as Bollinger Bands to measure
mean reversion. Bollinger Bands
employ various statistical factors,
such as supply management, in
order to generate a set of bands to
contain the price action. Bollinger
bands allow any trader to instantly
view price on a chart relative to its
volatility mean over a period of time.
Volatility is the rate at which the
price of a currency pair moves up
and down in the market. When high
volatility can be seen, the upper and
lower Bollinger bands widen and
wheh the price fuctuatiohs decrease,
the bands contract. The price usually
bounces off the range whenever it
touches the upper or lower band.
A second group of technical
indicators that are used to measure
mean reversion are Relative Strength
and Stochastic indicators. Both of
these technical indicators measure
how fast a market has moved in the
short term, relative to movements
over a longer period. Stochastic
indicators, in particular, are based on
the principal that in an up trending
market, stocks tend to close near
their highs and in a downward
market stocks tend to close near
their lows. These indicators create
an index that is used by traders to
determine if a market is overbought
or oversold.
In general, technical indicators
are successful because of their
popularity among traders, which is
based on the reasoning that volume
generates movement. The logic
follows that the more investors who
are trading in a certain direction,
the more that direction is set to
continue.
Analyzing Binary Options
33 33
Banc de Binary
Pattern recognition
In this type of analysis, the trader is
lookihg at specifc patterhs withih
the price action. This will help him
determine whether any recognizable
patterns reveal a predisposition
for him to forecast a specifc price
move. An example of this type of
pattern is a head and shoulders
pattern in which two shoulders and a
head can clearly be seen. In general,
the market will fall after forming the
second shoulder.
Support and Resistance
Support and resistance are among
the most widely known and widely
used Forex trading concepts and
strategies. These are the levels in
the markets, which price has not
been able to break outside of.
Support levels are the areas which
price cannot seem to break below.
If a break does happen, it is only
temporary and the price soon
returns above the level. Resistance
levels are the areas, which prevent
the price from rising further. These
levels act like a ceiling and appear to
force price back down when it tries
to break above the level.
It is essential to bear in mind that
support and resistance levels
are not exact numbers, but offer
traders a clear indication based
on past performance that when
price reaches either a support or
resistance level it is likely to bounce
back.
By utilizing these indicators,
a trader is essentially trading in the
same direction as many others.
This insight can be useful when
trading short term.To improve the
chances of accumulating consistent
profts from bihary optiohs tradihg,
there are two types of analysis
that traders can employ: technical
analysis and fundamental analysis.
Fundamental analysis looks at how
outside ihfuehces cah affect asset
prices; technical analysis focuses on
how a price has moved in the past
and how that can determine future
movements. Both types of analysis
are essential tools for traders.
34
Introduction to Fundamental Analysis
Fundamental analysis is based on the
principle that assets are generally
priced incorrectly and that markets
are constantly attempting to correct
them. These corrections are based
on outside events affecting asset
price and therefore traders will need
to continually check news items,
company announcements and
various publications.
This type of analysis can be
subjective, because the investor
is forming a view based on the
occurrence of certain outside events.
A trader would need to study all
levels of data, depending on the
asset he is trading, from company
level through to industry and
markets, on to country wide and
global level. Many events are inter-
related and can affect the price of
different assets and even different
asset classes.
Each type of analysis will help a
trader become more successful in his
forecasts. However, it is important to
note that a combination of technical
and fundamental analysis offers the
greatest chance of success.
Fundamental
analysis considerations
Fundamental analysis assumes that
the market is rational and that a
security's price will evehtually refect
the true value of the investment.
By contrast, technical analysis
assumes that the marketplace
will repeat past trends and that a
securitys price will eventually move
in the same way other investment
prices have moved.
As such, both theories potentially
turn a blind eye to important
external data. A stock that
announces big unanticipated news
is unlikely to continue to complete
a price pattern, or to move directly
towards its underlying real value.
Some of these factors and variables
include:
Analyzing Binary Options
35
Banc de Binary
Introduction to Fundamental Analysis
Company information
When using a companys share price
as the basis for a binary options
trade, full information about the
company is absolutely essential.
Read news items and press releases
and take account of analysts views.
Use a companys published accounts
ih order to calculate certaih fgures
and ratios to assess the companys
worth and performance, including:
Earnings per share (EPS) that
provides a measure of the value of
each share
Price to earnings (P/E) to
determine if a share is under- or
over-valued
Projected earnings growth (PEG)
to compare the share price to
annual growth
Book value as total assets less
total liabilities
Price to book (P/B) compares the
share price to the companys asset
value
Price to sales (P/S) to show the
share price in relation to annual
sales
Dividend yield as a percentage of
the companys share price
Return on equity (ROE) to
determine the effectiveness of
using the money invested.
Be aware that any news or
information about a company
may have far-reaching effects. For
example, the announcement of
a new product may increase the
companys share price while at the
same time forcing down the value of
its rivals.
36
Industry news
No one company exists in isolation.
The performance of an industry
will affect the value of all those
companies that comprise it. A
successful companys share price
may be dragged down by an
industry that is in general decline.
Conversely, a struggling company
may experience an uplift if the wider
industry begins to improve. Although
a company may perform better or
worse than its industry, it will always
be associated with it and this will be
refected ih the compahy share price.
It is advisable to watch for industries
that are on the upswing and to trade
companies that are part of them
accordingly. For example, one would
generally expect the price of shares
in renewable energy companies to
be increasing as the market develops
and products become more widely
available.
Natural events
The price of commodities will, of
course, be ihfuehced by hatural
disasters and weather events. As
such, all assets are affected by supply
and demand. For example, a drought
or severe storm that ruins crops on
a wide scale will force the price to
rise. Similarly, a hurricane that shuts
dowh ah oil feld cah cause the price
to rise due to supply problems.
Some of the effects of natural events
are fairly easy to predict, but they
can have far-reaching consequences.
If the price of a commodity rises due
to a shortage of supply, the share
price of the company that supplies
the commodity may increase.
Conversely, a company that uses
a lot of the commodity will suffer
a fall ih profts ahd its share price
may drop. A country that is a major
producer will beheft through exports
and its currency may rise.
37
Banc de Binary
Fear factor
Markets are often driven by
sentiment, with prices quickly
rising and falling. Often, theres no
real logical reason for the changes
and they can be driven by fear. Its
difcult to predict how markets
will move in these situations, but
often they establish an upward or
downward trend that continues
for some time. A successful binary
options trader will follow the news in
order to identify events that are likely
to panic or calm the markets.
Market conditions
Bull markets are established when
prices are rising, and the reverse,
bear markets, when prices are
falling. These markets can become
established for long periods, often
years, and help you determine
the general direction of price
movements. This is useful when
trading an index but also provides
guidance for individual company
shares. Whether a company is
successful or unsuccessful, it will
be affected by prevailing market
conditions.
Markets can also become range
bound, with prices moving within a
narrow band even when the longer-
term trend indicated a particular
direction. They may also become
volatile, with prices varying wildly.
Studyihg evehts that ihfuehce the
market will give a guide to overall
movements.
38
Economic performance
In the short-term, it is acceptable
for a country to run a large budget
defcit. However, if the defcit
continues for a number of years, it
can become a problem. Countries
often devalue their currencies
to make exporting easier and to
limit imports, thereby reducing or
eradicatihg the defcit. Wheh the
currehcy foats freely, the value ofteh
goes down against other currencies
that have stronger economies. The
Euro zohe itself poses a difcult
challenge, because there are many
countries with different performance
levels but only one currency.
Countries themselves often use
interest rates as an economic
weapon. A rising interest rate makes
a currency more attractive and
generally causes its value to increase
in relation to other currencies.
However, different countries can
change their rates in the same or
opposite directions at the same
time, so its the difference between
the rates that sets the currency
pair values. Prices often move in the
expectation of an interest rate change.
8udget defcits ahd fallihg currehcies
obviously affect the prices that
countries pay for the commodities
they import. This can have an impact
on other parts of the economy, with
share prices particularly affected
for those companies that import or
export extensively.
39
Banc de Binary
Economic indicators
leading economic indicators are important
in predicting price movements, because they
change before the economy as a whole does.
Stock market returns are one such indicator,
because the markets, for example, generally
rise before a recession ends
lagged economic indicators follow on after
the economy changes direction, such as the
unemployment rate, which usually improves
two or three quarters after the economy re-
enters growth
coincident economic indicators, such as GDP,
tend to move in line with the overall economy
Various economic indicators are published
that either analyze economic performance
or predict future performance. These
indicators have different timings in relation
to the way the economy changes:
40
Binary Options Trading Strategies
Asset prices often follow a trend
for a set period moving only in
one direction. When the trends of
price and volume move in the same
direction, it is an indication of a
healthy underlying market direction.
However, when price trend is rising
but the trend in volume is falling, it
warns of a potential price trend reversal.
When a reversal is indicated, a
trader might buy an option that is in
the opposite direction to previous
movements. He might, for example,
purchase a Call option if the price
has been falling and is now expected
to rise, or a Put option if the price is
due to fall after an increase.
Reversal
Binary Options Trading Strategies
41
Banc de Binary
Binary Options Trading Strategies
Trend Reversal
A trend reversal may be indicated
by a diamond pattern on a price
chart and, although it may be not as
common as other reversal patterns,
it can be a useful indicator. This type
of pattern comes in two forms
the diamond top and the diamond
bottom with both types having the
shape of a diamond lying on its side.
A diamond top forms at an up
trends peak, occurring when the rise
ehds ahd the price remaihs fat for
a while. This can result in a series of
waves that become taller and then
revert to a lower level. At this point,
you should expect the price to break
out to the downside. This is a signal
to change the direction of your
trades.
A diamond bottom is the reverse
effect, with the same reverse pattern
but at the bottom of a downward
trend. As the waves begin to
fatteh out, a chahge of directioh
is indicated and a breakout to the
upside is due. Any binary options
trader who has beeh fhishihg ih
the money with Put options should
therefore change to Call options in
order to take advantage of the trend
reversal.
This strategy is based on the concept
that if an asset suddenly moves in
one direction, it is unlikely to remain
at that peak but will move back
towards its original position, if not
all the way. So, an investor should
buy an option, Call or Put depending
on whether the price has risen or
fallen suddenly, on the assumption
that it will soon return and stabilize.
Of course, no one knows when
an asset has reached its peak. So
close monitoring of the asset and
researching why it peaked is vital to
deduce the likelihood and timing of
its return.
42
Straddle
The Straddle is a more complicated
strategy, because it involves buying
both a Call and Put option on the
same asset. The investor straddles
the asset at a low point as well as
a high point, and therefore the
area in between the two options
can be twice as successful. This is a
particularly useful strategy to protect
oneself in volatile markets.
If the price at expiry is somewhere
between the two levels, the trader
fhishes ih-the-mohey oh both ahd
maximizes proft. Ih a worse case
scenario, at least one prediction will
be correct and the trader minimizes
losses.
Although the setup itself can be
difcult, the straddle is ohe of the
best strategies in binary options
trading. The trader is looking to
place a Put as high as possible on
the asset and then when the market
drops, place a Call in the opposite
direction as it returns back up. This
means the trader always has at least
one trade expiring in the money and
he will either take a minimal loss or
gain a huge reward for landing both
trades for a large sum. The Call and
Put options do not have to be bought
at the same time. Rather an initial
option can be bought with a longer
expiry and the second purchased
once the assets direction is more
established.
Note that the straddle in binary
option trading is different from
vanilla options since the purchase
price and exercise rights differ
between the two.
Binary Options Trading Strategies
43
Banc de Binary
Knock-on effect
This is perhaps the most logical
of all strategies, and is based on
the concept that a move on one
option will have a knock-on effect
on another. For example, the price
of a stock may affect the price
of the index in which it is traded
or if a country heavily relies on
a particular asset, then a change
in that commoditys price may
affect the countrys exchange
rate. For example, a company
might announce a major new
product launch or a development
breakthrough that causes its share
price to rise but also drives down the
value of the companys competitors.
In this case, a trader would buy
a Call option on the company
and Put options on all of its main
rivals. The key is to understand the
interrelationships between assets
and to correctly anticipate price
movements.
The trader receives his payout; it
does not matter what happens to
the price after that. If the price does
not reach the stated level before the
expiration of the contract, the trader
will lose and forfeit his stake.
44
Risk Management
One of the most important considerations for any trader is how to manage
risk. Although binary options offer low risk compared to other types of
trading, the possibility of loss is always given. While there is no strategy that
can fully avoid risk, there are numerous methods an investor can utilize to
mihimize his fhahcial exposure wheh he ehters the market.
Analyze and research
Following a hunch will generally
end in failure and a trader should
never simply guess when he makes a
trade. The primary way to minimize
risk is to undertake thorough asset
analysis. Technical analysis will
establish price patterns that indicate
future movements; fundamental
analysis will identify events that will
cause price changes.
Making successful trades is often
about getting in quickly; watching
the news and announcements will
ensure a trader stays ahead of
the market and understands how
events are likely to affect prices. The
information a trader utilizes should
always be current. A trader must act
quickly to predict price movements
before its too late.
Risk Management
45
Banc de Binary
Learn from your mistakes
It is important to remember that trading
mistakes occur from time-to-time and it is
behefcial to accept each mistake as a lessoh
and to try to learn from the experience.
Traders should build up a history of both
successful strategies and those that have
not worked, so that he can avoid repeating
the same mistakes in the future. Gradually,
over time, the investor will build up his
success rate overall.
Follow trends
Trying to beat the market does not usually
work. Investors should generally watch for
trends and try to follow them by purchasing
mainly Call options in a bull market and Put
options in a bear market. Traders should
also remain alert to how the market is
moving so that he can alter his tactics as
soon as a reversal looks likely.
46
Familiarity
Risk can be minimized by trading
assets with which an investor is
already familiar. For example, a
trader who also works in the oil
business should aim to trade oil
on the commodities market or the
shares of major oil companies.
However, trading a single asset
will be far too restrictive, and will
limit the opportunities for trading
success. Trading different assets
in various markets will spread the
risk, so the best advice is always
to gain familiarity in new areas by
performihg sufcieht research ahd
analysis as outlined above.
Risk and reward
Trading is a balance between risk and
reward. A greater appetite for risk offers
higher returns, along with the reduced
probability of success. A safer bet will
ihcrease the chahce of a proft but will,
in turn, pay less and take longer to
accumulate sighifcaht profts.
The best strategy is usually to go for
a mix of trades. A trader should only
opt for a riskier trade if he has a frm
reason to believe he is correct in his
assumptions. He should opt for the
safer option if he is not totally sure.
Needless to say, if a trader entertains
real doubts about a trade, he should
avoid it altogether.
Risk Management
47
Banc de Binary
Limiting your trades
Making a succession of bad trades, will
quickly exhaust available proft. Wheh a
trader hits a bad run, he can simply stop
trading. If he does that, however, he wont
know when his bad run has come to an
end. The best strategy, therefore, would be
to keep trading but with reduced stakes.
A good risk management strategy is often
to limit each trade to a set percentage of
existihg capital. A ballpark fgure would be
to never risk more than 8.5% of existing
profts oh ohe trade. This meahs a trader
would have to make eleven consecutive
bad trades before he completely expended
his capital. It also means that the amount
at risk gets progressively less when a trader
is losing but then starts to increase when
he enters a winning streak so that, in turn,
he also stahds to make more proft.
48
Choosing a Binary Options Broker
The growing popularity of binary
options trading has attracted a
number of brokers to the market.
All have key differentiating features.
Since a broker is a necessity in
order to trade binary options, it
is important to choose one who
provides the right level of service for
your needs.
Some brokers may offer only a
limited range of tradable assets in a
relatively small number of markets,
which will seriously restrict an
investors opportunities to trade and
make money. A trader should look
for those brokers who offer plenty
of assets across a range of global
markets. In practice, this means
there will usually be at least one
open market most of the time and
better opportunities and availability
for trading assets of choice.
Trading platform
Following a hunch will generally
end in failure and a trader should
never simply guess when he makes a
trade. The primary way to minimize
risk is to undertake thorough asset
analysis. Technical analysis will
establish price patterns that indicate
future movements; fundamental
analysis will identify events that will
cause price changes.
Making successful trades is often
about getting in quickly; watching
the news and announcements will
ensure a trader stays ahead of
the market and understands how
events are likely to affect prices. The
information a trader utilizes should
always be current. A trader must act
quickly to predict price movements
before it is too late.
Choosing a Binary Options Broker
49
Banc de Binary
Choosing a Binary Options Broker
Ease of use
Depositing money and withdrawing
accumulated profts should be
a simple, quick and inexpensive
process. Traders should not be
unnecessarily prevented from trading
nor kept waiting for their money. In
particular, look for a broker that offers
multiple methods of depositing and
withdrawing money, and where the
process isnt an over-complicated one.
Keeping it safe
Needless to say, security is
crucial. The broker should offer a
safe trading environment. There
should be a privacy policy and
adequate authentication to prevent
unauthorized access to accounts. It is
vital that all data and transmissions
are securely encrypted so that
personal information is not divulged.
One of the most respected providers
of online security and authentication
solutions is the company Comodo,
with over 200,000 business
customers and more than 7,000
afliates ahd busihess parthers
working to make the Internet more
secure. Any broker that has this level
of security will provide the safest
possible trading platform. Check and
compare what each broker provides
and choose the one with the highest
level of security.
50
Service and support
However experienced a trader
becomes, he is likely to want a
degree of support at some time.
Brokers offer different levels of
service that are designed to meet the
needs of different types of traders,
depending on the type of account
that is selected. There should always
be a help line, an email address and
a live chat facility in case a trader
requires urgent support. Look at
the type and extent of information
that is provided and how often it is
updated. Most importantly ensure
the information provided is accurate
and of the highest quality.
Some brokers offer different
accounts directly aimed at different
levels of trader from the novice to
the experienced to the seasoned
professional. It is sometimes
possible to start with a practice
account where investors can trade
without risking any money (although,
of course, without accumulating any
proft either).
Certain brokers, however, will
require a deposit even for a practice
account. Superseding that, there
should be a basic account with a low
deposit requirement right up to a top
of the range account that requires a
much higher deposit but provides a
more personal and comprehensive
service.
In light of the vast array of accounts,
brokers and platforms available, it
is absolutely essential to choose the
broker that is a good ft for you.
Choosing a Binary Options Broker
51
Banc de Binary
52
Frequently Asked Questions
What is a binary option?
A binary option, also referred to as a digital option or an
all-or-nothing, is an option in which payout is determined
at the onset of the contract.
The trader receives a fxed amouht of returh if the optioh
expires in-the-money, irrespective of how much the price
of the underlying asset has moved. The trader never
actually owns the asset. It is the security upon which an
options contract is based.
What is an underlying asset?
A commodity, index, stock, or Forex pair
that can be traded as a binary option.
What is a Call option?
An option that provides the trader with a predetermined
proft wheh the uhderlyihg asset is higher at the time of
expiration than at the time it was purchased.
What is a Put option?
An option that provides the trader with a
predetermihed proft wheh the uhderlyihg asset
price is lower than when was purchased.
What is the investment amount?
The amount of money invested in the option.
Frequently Asked Questions
53
Banc de Binary
Frequently Asked Questions
What return will I get for a successful investment?
A successful investment will result in a guaranteed return. If the
prediction is correct, the trader receives a refund of the stake plus
a return on investment that is typically 71-88%.
What return will I get on any given binary
option trade in the event that the option expires
out-of-the-money?
You will receive a small proportion of your original stake. The
balance will be deducted from your investment account.
What is the minimum amount to
purchase a single option?
1 EUR/ 1 USD
What is the maximum amount
to purchase a single option?
3,000 EUR/USD
I tried to invest an amount for a single option
but received an error message telling me I
exceeded the maximum investment amount.
What should I do?
The maximum investment amount you see depends on various
factors. However, you can purchase multiple options, one
following the other, to achieve a higher accumulated amount.
How do I invest?
1. Choose the asset that you want to invest in.
2. Choose a Call or Put option for the underlying asset.
3. Choose the expiry time for the trade.
4. Enter the amount of the investment. You may
cancel the selection by clicking X any time before the
transaction is approved.
5. Click Apply
6. Approve the trade
54
What are the levels displayed in the trading boxes?
A level is the quoted price for an option of an underlying asset.
The level changes and is updated frequently according to different
parameters that Banc De Binary proprietary algorithms take into
account. The levels we present in the trading boxes are those at
which Banc De Binary is willing to sell options and are Reuters real-
time market levels. For more details about how expiry levels are
determined, refer to the website (www.bbinary.com).
What is the expiry rate?
The expiry rate is the price of the underlying asset according
to Reuters at the time of expiry of the option. This rate
determines if the option has expired in-the-money or out-
of-the-money. A different expiry rate is determined for
each underlying asset. The calculation of the expiry rates is
detailed on the Banc De Binary website (www.bbinary.com).
What is the expiry time?
The expiry time is the time and date when the trade ends.
If your forecast is correct at this time, you will be in-the-money.
What is the difference between purchasing options
in Banc De Binary and buying Put and/or Call
options in the stock market?
The options available in Banc De Binary are binary options (refer
to the frst questioh for a detailed defhitioh). They are differeht
to standard (vanilla) option chains that are offered by stock
exchahges. The latter typically have lohger expiry dates, sighifcahtly
fuctuatihg yields, ahd cah be sold before expiry. 8ihary optiohs have
a fxed returh ahd are offered for differeht expiry poihts from the
end of an hour to the end of a month.
Frequently Asked Questions
55
Banc de Binary Banc de Binary
Where can I view the precise trading
hours of each asset?
A detailed list of all our available assets, their
description, expiry times, symbol and trading hours is
presented in the Platform Asset Index on the Banc De
Binary website (www.bbinary.com).
What happens if the expiry rate of a given
underlying asset is identical to the rate at
which the transaction was made?
The optioh fhishes at-the-mohey ahd the amouht of the
investment is returned to you.
What is the time zone of the expiry time?
The sites trading hours and expiry times are shown in a GMT time zone.
Are the profts taxable7
As a Banc De Binary customer, you are responsible for your
taxation liabilities, if any, at your place of residence. See our
general terms for more details.
Why cant I invest?
All our assets are available during market trading hours. On rare
occasions, investments are not available for certain assets owing to
technical reasons. Usually, these problems are resolved quickly and
you may try again shortly. Other than this, you will not be able to
ihvest if you have ihsufcieht fuhds ih your accouht.
56
Taking a Trading Bonus
Pros and Cons
Some brokers will pay bonuses to
traders, for example, on sign-up,
which will generally be a percentage
of the initial deposit. Trading
bonuses offer great value and extra
trading leverage, which will boost the
traders options to make a greater
number of trades and become
familiar with binary options trading
more quickly.
Matching bonuses may be made
on subsequent deposits so that the
trader has further additional funds
available. The amounts of these
bonuses may vary depending on
how the trader makes the deposit,
indicating that there are preferred
methods that the broker is trying to
encourage.
Bonuses are sometimes paid when
sighifcaht fhahcial evehts are due
so that traders can take advantage of
the opportunities they present. There
are also rebate bonuses, where
traders receive a percentage of the
amount theyve traded over a period.
As always, a trader should research
and uncover the most enticing offers
for him.
However, just because the money
is essentially free, it should not
be used recklessly by undertaking
trades that are essentially gambles.
By all means, traders should make
deposits in ways that will earn them
the biggest behefts, but they should
not deposit more money than they
can afford simply to get the bonus
money.
Taking a Trading Bonus Pros and Cons
57
Banc de Binary
58
Banc De Binary -
types of trading bonus
An account will be given added
value when a trader consistently
deposits funds. Banc De Binary
matches the traders real deposit by
a certain amount as per the following
example:
If Banc De Binary offers a 50%
deposit match of up to $50,000,
which means that if the trader were
to open a new trading account and
make an initial deposit of $1,200,
Banc De Binary would instantly fund
the account with an additional $600,
raising the account balance to $1,800.
When trading with bonus leverage
a trader must be cautious. It is truly
appealing to trade with $20,000
when the initial deposit was only
$10,000, but there is a downside.
The trader may close higher
trades and make more money
initially (or in the long run), but the
possibility of losing money increases
exponentially. Options trading can be
risky, cohfdehce ahd respohsibility
are the keys to successful trading.
To help traders starting out with
binary options trading online, Banc
De Binary offers new customers a
tradihg bohus oh their frst deposit
as well as re-deposit bonuses.
The sign-up bonus gives new traders
an extra boost to their trading
balance so that they can open their
frst positiohs with 8ahc De 8ihary's
bonus money until they accrue more
experience in the binary options
market ahd more cohfdehce usihg
the Banc De Binary platform.
After receiving the sign-up bonus,
traders are given several other
opportunities to boost their account
balance. Banc De Binary often offers
a broker bohus before sighifcaht
fhahcial evehts to ehable traders
to take advantage of the market
volatility at those times.
Taking a Trading Bonus Pros and Cons
Deposit matches
Sign-up bonus
59
Banc de Binary
Traders should check out Banc De
Binarys Refer a Friend program to
see how referrals can be turned into
Forex bonus money.
A rebate bonus is usually offered
on a monthly basis and it is Banc
De Binarys way of giving back
a percentage of the traders
investment that month. We also offer
special trading bonuses to traders
depositing with certain funding
methods, such as Moneybookers
and wire transfer. Banc De Binary
also has special agreements with
certaih afliates offerihg a free
joining bonus in addition to the sign-
up bonus.
Banc De Binary rebate bonus
Refer a friend
60
Personal Broker Program
The Personal Broker program makes use of Banc De Binarys extensive
knowledge and experience and is aimed at institutional, high net worth and
retail clients. Our main aim is to enable those clients to make the maximum
proft from bihary optiohs tradihg with the mihimum amouht of effort.
Features of the program
The main function of the personal broker
program is to provide trading signals so
that clients are advised what to trade
and when. This means that all analysis
is undertaken by Banc De Binarys
experienced specialists, which in turn,
saves the client time and effort.
As a member of the program, clients
receive trading signals at any time of
the day or night as and when they arise,
although these will generally be between
7 a.m. and 7 p.m. (GMT) when the US and
European markets are open. These signals
will advise a short or long position in a
particular asset, indicating that the trader
should consider a Put or Call option.
Personal Broker Program
61
Banc de Binary
Personal brokers cannot access accounts
and do not trade on the clients behalf.
They simply provide trading signals that
are based on thorough research and so
offer the best chance of trading success.
The personal broker program requires a
minimum deposit of $5,000 US and control
of the account remains with the client.
Trading signals do not have to be followed
and, if they are, the investor can decide on
the amount of the trade.
Money can be deposited and withdrawn in
the normal way and clients can access and
monitor the account 24/7.
62
VIP Platinum Program and Platform
The Platinum Program is Banc De Binarys top of the range
account and requires a minimum deposit of $50,000.
The accouht offers a rahge of behefts, such as:
VIP Platinum Program and Platform
Access to individual competitive prices on
options based on the investors trading volumes.
Cptiohs offered oh a frst base service
in order to provide the client with top bid.
Optional free access to Banc De Binarys
independent personal Trading Advisory Team.
A wide range of high level publications.
63
Banc de Binary
VIP Platinum Program and Platform
The Platinum Program is Banc De Binarys top of the range
account and requires a minimum deposit of $50,000.
The accouht offers a rahge of behefts, such as:
Preferred access to client service
24 hours a day, fve days a week.
A local telephone number
that routes directly into the dealing room.
A personal broker who will monitor the clients
account on a bi-daily basis along with an
OptionTrend Analyst.
Eligibility for the MoneyBookers VIP Program.
64
Amliate Program
If you are interested in joining
anc De inary's Amliate Program,
please contact an amliate manager:
Email: afliates@bbihary.com
Telephone: 1(800) 656 6163
Skype: afliates.bbihary
Cur afliate program offers
traders the opportunity to become
introducing brokers to Banc
de Binary. For every new client
introduction, we will reward the
referring trader with a percentage
of the deposit. The more clients that
a trader is able to convey to us, the
higher the rewarded revenue will
be. Only initial deposits count for
remuneration as outlined below.
All commission rates are based on
Banc De Binarys net revenues, which
are calculated as gross revenue less
any processing fees, cancellations
and incentives given to customers
such as coupons and bonuses.
Afliate Program
65
Banc de Binary
Revenue share plan
CPA payment plan (monthly)
Super ihterhal afliate
tiered revenue share plan
Number of Clients Rate per Client
0-50 $100
51-90 $150
91-150 $200
151-250 $300
251+ Up to $1,000
Total Revenue Commission
$010,000 15%
$10,00150,000 20%
$50,001100,000 25%
Tier Level Commission
1st Tier 2.5%
2nd Tier 2.0%
3rd Tier 1.5%
4th Tier 1.0%
5th Tier 0.6%
6th Tier 0.5%
7th Tier 0.4%
8th Tier 0.3%
9th Tier 0.2%
10th Tier 0.1%
66
Banc De Binary Platform Rates
The rates provided on a brokers platform are
all-important. The source of these rates must
be completely reliable: the clients money is
depending on it. At the end of the day, the rates
decide whether a trader will make a proft or
whether he will suffer a loss.
The rates that clients see on Banc De Binarys
platforms are real live streaming rates, which
are displayed by us in real time. Our rates,
charts, and market information are provided
by Reuters, the worlds biggest and most relied
upoh fhahcial ahd hews ihstitutioh. All our rates
can be checked back with the rates published on
Reuters website. On request, we will gladly check
them against the rates of our dealing desk.
67
Banc de Binary
Banc De Binary Platform Rates
The outcome is that your account
is as secure as it possibly can be
at all times.
68
Platform Security
Banc De Binary provides the highest security
stahdards ih all our fhahcial trahsactiohs.
These security measures include:
Non-disclosure of personal information to
third parties except where legally obliged to
do so.
Online identity assurance ($250,000).
Account authentication procedures ensure
that only authorized users can withdraw.
Banc De Binary provides the highest security
stahdards ih all our fhahcial trahsactiohs.
Adherence by all third party data-processing
companies (i.e. when transferring funds) to
the same high level of security standards.
Application of the highest level of
encryption to all communications to prevent
unauthorized viewing of transactions.
Investment in the latest technology ensures
that the latest safeguards are always in place.
Platform Security
69
Banc de Binary
70
Deposits and Withdrawals with Banc De Binary
Banc De Binary aims to make the process of depositing and withdrawing
money as simple as possible so that clients can start trading quickly and
access accumulated profts at their cohvehiehce.
To offer the best possible service to clients, the following deposit and
withdrawal methods are offered:
Deposits and Withdrawals with Banc De Binary
Bank Wire Transfer (international and domestic)
via a clients bank account. This allows secure
transactions from $1,000 with no maximum limit,
which are completed withih fve workihg days.
Bank charges may apply.
Credit/Debit Card, for amounts between $500
and $25,000 ($50-1,500 for third party credit
card via MoneyBookers). This method deposits
funds instantly but can take up to ten days for
withdrawals. There are also credit card fees on
such withdrawals.
MoneyBookers eWallet allows amounts
between $50 and $1,000 (although unlimited
for MoneyBookers VIP accounts). Deposits and
withdrawals occur within minutes.
The range of options may be extended from time
to time so please view Banc De Binarys website
(www.bbinary.com) for the latest details.
71
Banc de Binary
Deposits and Withdrawals with Banc De Binary
72
Types of Accounts
Our Practice Account is available to new investors who
want to experience trading binary options without risking
any actual money. It has a notional $50,000 limit, is valid
for seven days after opening and has the same conditions
as the Micro Account except that no money is involved
wheh makihg trades. It's the perfect way to fhd out how
binary options trading works.
The Micro Account allows investors to trade over seventy assets
(stocks, indices, commodities and foreign exchange) using Banc
De Binarys professional trading platform, with full 24/7 support
through LiveChat. Theres a minimum $500 deposit. No trading
bonuses are offered with this account.
The Classic Account offers access to the full range of binary
options types (digital, touch and range) and to all asset types.
The minimum deposit is $1,500 and investors can view news
and world-class market research, real-time trading ideas
through LiveChat as well as TrendStation, Banc De Binarys
innovative trading education program.
There are many different types of binary options traders, from those new to
this market to seasoned professionals. Accordingly, Banc De Binary offers
a range of accounts that have different features according to each traders
individual requirements:
Types of Accounts
73
Banc de Binary
Investors can begin trading with any level of account
and upgrade it later to suit their needs.
Our Premium (Personal Broker) Account provides
everything available through the Classic Account plus
extended streaming news and research.
Cliehts also beheft from the services of a persohal
options broker who will issue trading signals and deal
with account enquiries. A Premium Account Executive
Team is available 24 hours a day, fve days a week for
trading by telephone, Skype and LiveChat. The account
is eligible for the MoneyBookers VIP Program and a
minimum $5,000 deposit is required.
The Platinum (VIP) Account is Banc De Binarys
top of the range account and requires a minimum
deposit of $50,000. Clients receive options at
competitive prices based on their trading volume,
access to an independent personal Trading
Advisory Team and a wide range of high-level
publications. Client service is accessible 24 hours
a day, fve days a week via a local telephohe
number routing directly to the dealing room.
Further, a personal broker and OptionTrend
analyst will monitor the clients account on a bi-
daily basis and the account is also eligible for the
MoneyBookers VIP Program.