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Binary Options Trader E-Book
Binary Options Trader E-Book
TRADER E-BOOK
Table of contents:
A word from the CEO 02 Trading Instruments 12 - 19
Best regards,
Ben Zenneti
CEO
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Binary options are is the new kid in the block of the financial market, particularly online.
More and more traders realize that binary options is a lot easier and profitable that forex and
other traditional trading methods.
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Yet another agreeable aspect of Binary Options, what you stand to lose or gain is set forth
from the beginning
What
6 are Binary Options What are Binary Options 7
Registration: Deposit Funds:
In order for you to start trading Binary Options, you will first need to register onto our The process of adding funds to your account is quick and simple. You may process
website. It is necessary to complete all required fields with agreement to the terms and the deposit via the platform or with the assistance of your account manager per your
conditions. request. To fund the account you will first need to login to our platform, click the Deposit
button located on the right hand side or you may also use the Banking tab, where you
choose the Deposit button from the drop down menu.
Deposit Page
You will be directed to the
deposit page, where you will
be asked to enter in your
billing information and chosen
Registration page method of payment.
complete all the A client account balance must
required fields* be sufficient to cover all open
and press the Register trade positions at all times.
button.
Once the registration
process is complete,
you will receive the
confirmation e-mail.
* *
Clients must take full responsibility in ensuring that trading on Opteck is in compliance with the Opteck accepts a variety of payment methods: Visa, MasterCard, American Express, CashU,
laws and regulations in their country of residence. Bank Wire Transfer, Ewallet and Western Union.
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We support wide range of currencies and a selection of withdrawal methods such as
Bank wires, Credit cards, Webmoney, cashU, Moneybookers and Western Union.
One Touch
In One Touch you decide whether the market price will reach a certain amount At-The-Money (ATM)
(at least once) before the expiry time. • When the current price of the underlying asset is the same as
when the Option was purchased
Out-Of-The-Money (OTM)
Range
In the Range instrument, there is both an upper and a lower target price that • The outcome of the trade is not profitable. For example, if the
form a boundary range. Option was a Call, then the current price of the underlying
asset would be lower than the original price at the time the
Option had been purchased.
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Tradiotionally, high/low type is the well-known binary options type of trading, One Touch & Range
are the type of trading that are considered to be riskier however the return on these positions
is usually higher and makes the trading process more intuitive and interesting.
Asset Name
Asset chart Information
The grey area indicates The white area shows until when the
when the position is trader can join the Option, invest
Asset Information action blocked more or close a current position
An additional
Click within the box to sector to place
Asset Name view the asset chart Vertical view of the a call or put
price range
The grey area indicates The white area shows until when the
Asset Information when the position is trader can join the Option, invest
action blocked more or close a current position
Asset type
Completed Trade:
By definition, the Binary Option offers a predetermined time frame that will automatically
close the Option at the time of expiration.
Opteck traders have the choice to close a trade before the closing time (white sector
of the graph) whether the Option is In-The-Money or Out-Of-The-Money.
To access the possibility of closing a trade early, click the 1 blue arrow at the right
hand side of the ‘Recent Trade Actions’, which will then prompt the 2 selling data for this
trade.
1
1 Trading box:
The trading box is located at the bottom of the trading page, under the asset chart. In order to 2
buy an Option, you simply select the direction (call or put) and the amount you want to invest 3
and then click the ‘Invest Now’ button.
The manual closing of a trade before expiration follows with a partial return rate %,
offered by
2 Trading directly from the chart:
Opteck’s algorithm calculation. If you agree with the offered closing rate and choose to
While in the chart, click the green or red
arrows to open the trade, a trading box will proceed, simply click on the 3 blue ‘sell’ button and the closure will be complete.
then appear on the chart, where you will
complete the trading process.
* *
Opening a trade is as simple as 1-2-3: Choose your asset, make your choice (high/low) and set Trading binary options is the ultimate way to make hundreds of percentage in profits in just a
the amount for that trade and click "Invest now". matter of minutes from your home, office or no even on the go with our mobile trading platform.
What currencies are available for use in My Account? Where may I see my transaction history?
All major currencies are supported. The selection of currency cannot be changed All account activity may be accessed under the ‘My Account’ tab.
after the account has been registered.
Why can't I see a particular asset?
Is there a minimum withdrawal? The assets that are displayed on the trading page by default are the assets that have
There is not a minimum withdrawal amount but in order to withdraw cash you will proven to be most in demand and active. Further assets can be found in the Options
need to have sent us your identification papers. menu, or in the ‘Asset Index’.
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If you have any further questions you are always welcome to contact our financial experts
team Or your peronal account manager.
Put Index/Indices
When a trader predicts that a price of an asset on expiry will be below the strike price An index represents a basket of stocks. For more information about the indices traded
of the Option. on the Opteck platform see “Asset Index.”
28 Glossary Glossary 29
High/Low: for the trader, a small percentage of the original stake will be returned. The protection
In High/Low you decide whether the market price will close higher or will close lower rate is predetermined prior to executing the trade, in the same way that the payout is
than the current price. also fixed from the start. The protection rate acts as a small consolation in the event
that the price moves against a trader.
-In a call Option (predicting uptrend) the price needs to stay
higher than the striking price at the end of the Options time frame.
-In a put Option (predicting downtrend) the price needs to stay lower than the Out-Of-The-Money
striking price at the end of the Options time frame. The outcome of the trade is not profitable. For example, if the Option was a Call, then
the current price of the underlying asset would be lower than the original price at the
In-The-Money (ITM) time the Option had been purchased. (See “At-The-Money”, “In-The-Money”)
The outcome of the trade was profitable. For example, if the Option was a Call, then
the current price of the underlying asset would be higher than the original price at the Range:
time the Option had been purchased. (See “At-The-Money”, “Out-Of-The-Money”) In the Range instrument, there is both an upper and a lower Option target price that
form a boundary range.
One Touch: -In a call Option (predicting uptrend in a limited range) the price needs
In One Touch you decide whether the market price will reach a certain amount before to stay higher than the striking price and lower than the upper line.
the expiry time. -In a put Option (predicting downtrend in a limited range) the price needs to stay
lower than the striking price and higher than the lower line.
• -In a call Option the price needs to climb and reach the green line presented on
the graph (approximately 30 pips.)
Reuters
• -In a put Option the price needs to lower and to touch the red line presented on
The Reuters System is one of the world’s leading financial data providers. It is the
the graph under the striking price (approximately 30 pips.)
system in which Opteck refers to for the platform’s expiry rates.
Opteck Rates
Stock index
Opteck enables the client to buy or sell an asset with no market spread. The open
Stock values for a particular group of stocks (often popular stocks) are summed up
rate of a put Option is same as the open rate of a call Option.
to create an Index, such as The Dow Jones Industrial Average.
Option
Technical analysis
A financial derivative that represents a contract sold by one party to another. The
A method of elevating a security by evaluating statistics related to its historical
Contract offers the buyer the right to buy (Call) or sell (Put) a security, or other
performance, such as past prices and volume. Charts and graphs, in addition to other
financial assets, at an agreed upon price (strike price) during a certain period of time
research tools, are utilized to identify any possible patterns that may be indicators
or on a specific date.
of future activity.
Return rate
Trend
The return rate is a value of the contract for the successful expiry of a Binary Option.
Rrefers to the movement of a price over a period of time, the longer the period of time
The return rate is predetermined. Therefore it does not alter depending on the relative
where price moves sustainably in the same direction the larger the trend. Recognition
success of the speculation, if the contract expires one point or fifty points above
of a trend can allow speculators to make informed decisions based on the probability
the price in a call Option it would still result in the same payout. The return rate is
of the future direction of price.
expressed as a percentage of the initial trade investment.
Turnover/Volume
Protection rate
A measure of activity showing the number of shares or contracts that are traded
The protection rate refers to the guaranteed return of a marginal amount of the
during a given period of time.
trader’s original stake. Therefore, if the Binary Option fails and expires unfavorably
30 Glossary Glossary 31
What Does it takes to
Become a Profitable Trader
Turtle Trading; A Market Legend:
Back in the 80’s, legendary commodity traders Richard Dennis and William Eckhardt As Opteck’s traders you will be granted education that specifies the methods used
used to have frequent discussions about their success. Dennis believed anyone could to master our ability to become a professional trader through logical, sophisticated,
be taught to trade successfully, while Eckhardt countered that Dennis had a special gift yet simple explanations for the different tools and observations of the market. It is
that allowed him to profit from trading. essential to follow these methods to gain confidence and to raise the percentage of your
profitable trades, however, more so to understand accurately why it’s essential to do so.
An experiment was set up by Dennis to finally settle this debate. Dennis would find a
group of people to train, using his rules, and then have them trade with real money. He
called his students "turtles" after recalling turtle farms he had visited in Singapore and The Rules:
professed that he could grow traders as quickly and efficiently as farm-grown turtles. 1. Look at prices rather than relying on the information from the media and newspaper
commentators to make your trading decisions.
The turtles were taught very specifically how to implement a trend-following strategy.
The idea was that the "trend is your friend," meaning you should trade call on the 2. Have some flexibility in setting the parameters for your buy and sell signals. Test
breaking out of the upside of a trading range and trade put on the downside. different parameters for different markets to find out what works best, from your
personal perspective.
Dennis had two turtle classes that he personally trained, lasting two weeks. They
then went on to trade professionally, under supervision, and earned more than $175 3. Plan your exit as you plan your entry. Decide when you will take profits and when
million in an astonishing five years. you will cut losses.
4. Use the average true range to calculate volatility and use this to vary your position
What can we learn from this historical tale? size. Take larger positions in less volatile markets and lessen your exposure to the
zatSecondly, it is worthwhile to take note that once the turtles quit their jobs as more volatile markets.
traders and went home to try to duplicate this same line of work, using their own 5. Don't ever risk more than 2% of your account on a single trade.
funds – they lost it all. The moment they tried to trade as home-traders, they failed
6. If you want to make big returns, you need to get comfortable with large drawdowns.
to follow the strict rules of trading. The absence of a supervising manager, overseeing
their trading list, opened the door for their individual perspective driven by psychology
and emotions. Once you have the help of Opteck’s account manager, they will provide Please note: This method was established and performed with the stock market.
you with a professional analysis of your behavior as a trader, in addition to critique and trading in binary options, Essentially, we can discard the rules 2,3, and 5, which will
elevate your knowledge and trading skills. actually make your trading experience far simpler.
Binary Options is the only trading method that allows you to eliminate the noise of
the live market by applying a specific pattern to trade on that will actually lower the
emotional element and elevate the professionalism of an individual trader. And then
position themselves in front of the sea of professional traders around the world.