Binary Options

Introduction to Binary Options Trading

In its most simplistic overview, a Binary Option is a form of speculative futures trading whereby the payoff is either a pre-agreed amount or nothing at all. This dual outcome is the reason the term “Binary” is used. Binary Options can be applied to a broad number of assets including Commodities, Stocks, Indices and even Currency Pairs.

The main prerequisite required by these assets is that their values fluctuate constantly throughout each trading day. This is important as you never actually buy an asset when you purchase a binary option, you are simply making a speculative investment on an assets behaviour over a set period of time.

Binary Options have gained much popularity in recent years due to their simple up/down nature, the low cost required to participate and the increased number of online brokers offering services to the public. They are now more accessible than ever, and provide an incredible opportunity for traders to earn vast profits in as little as 30 seconds.



Basic Terminology

Each form of trading has its own set of common terms and phrases. We have collected a number of Binary Options examples here to provide you with some insight the most popular expressions.

Pip – This is an acronym for “Percentage In Point”. The value of a currency pair is usually presented at up to five decimal places such as, 1.75164. A Point is 1 number to the left of a decimal and a pip is represented as the lowest value to the right of the decimal. In this example, it would be the number 4. Other assets in Binary Options are measured in terms of pricing (e.g. cents and dollars).

CallOption – This is the name given to an investment that is predicted to increase in value at the time of expiry. A profit can be made here by your asset value increasing in value by even one Pip or cent over its Strike Price.

Put Option – This is the opposite of a Call Option, and refers to an investment that is predicted to decrease in value at the time of expiry. A profit can be made here by your asset value decreasing in value by one Pip or cent over its Strike Price.

Strike Price – This is the price of the underlying Binary Option asset at the time of purchase. When an option expires, it is compared to the Strike Price to determine if the closing price has gained in value (In The Money), or lost value (Out The Money).

In the Money – An option is referred to as In The Money if it has gained value/paid out on expiry. This can refer to both Call Options and Put Options. A Call Option will be In The Money if the value of the asset is higher than the Strike Price on expiry. Similarly, a Put Option will be In The Money if the value of the asset is lower than the Strike Price on expiry.

Out of the Money –This is literally stating that you have lost the trade. The dualistic win/lose nature of Binary Options means that winning and losing your investment is equally possible. A Call Option will be Out of The Money if an asset is lower than the strike price on expiry. A PutOption is Out of The Money if an asset is higher than the strike price on expiry.

At the Money – A very rare occurrence in the ever-changing financial markets is when an option equals the market price of the underlying security at the time of expiry. This is neither a win or a loss and your investment will normally be returned to you.

Types of Binary Options Trades

There are a number of variables that all traders should consider before making an investment, but a Binary Options trade is normally no more than three simple steps, assuming you have a trading account and have picked an asset with which to trade with.

  • High/Low Options (aka: The Standard Binary Options Trade)
    1. Select a Call (High) or Put (Low) prediction
    2. Enter your Investment amount and select an expiry time
    3. Click “Invest”

    Various payouts percentages will be offered to traders depending on their choices of expiry times and investment amounts. Once a trade is made, it’s simply a waiting game until your pre-determined expiry time, and then you will know if you are In the Money or not.

    There are several, more advanced Binary Options trading methods available to traders. These use the basic format shown above, but contribute towards more sophisticated Binary Options strategies.

  • Short Term Options – This is the collective term used to describe options that expire in 5 minutes or less, and are some of the most traded Options. These can include an expiry in 30 seconds, 60 seconds, 2 minutes and of course, 5 minutes. These options are typically used to trade around breaking economic events and news stories. Short Term Options are hugely popular, but can be tricky and require an understanding of Fundamental Analysis.
  • Touch Options – The markets have a nature to consolidate and this provides trend patterns. Traders can analyse and use these to make educated assumptions on the prospective future values of an asset. This is where Touch Optionscome in. They tend to have three sub-options; Touch, No Touch & High Yield Touch.In a standard Touch Option, Traders select a specific value that an asset must reach within a specified period of time. This value is called a Trigger. A standard High/Low Option only expires at the pre-set expiry time. A One Touch Option will expire as soon as the Triggeris reached, automatically closing an Option In The Money.In the case of the No Touch Options, you may select the same Trigger, but you are now investing on the assumption that your asset will NOT to reach the Trigger value by the pre-set expiry time. If you are correct, you will earn the pre-agreed return.A High Yield Touch Option is very similar to the standard High/Low Options, except you are offered a very aggressive fixed return, such as 350% of your investment, if your asset reaches its target value and you’ve speculatively invested correctly.Dependent on the broker, the Touch, No Touch, and High Yield Touch Options may provide traders with the opportunity to exit an option early if the price goes against them.
  • Boundary Options – These are also known as Range Options. When trading Boundary Options, a binary options asset is given two target prices in relation to the strike price/market price. The first price will be higher than the strike price and the second price will be lower than the strike price, thus providing a Range or Boundary.A trader must now select if the asset will finish In or Out of that given range, within a predetermined time frame. These options can usually be closed early, and should you do so whilst in the correct range to be In The Money, you will not get the full pre-agreed payout, but most brokers will provide some form of a return. Traders can usually find a High Yield Boundary Option with most traders.These work exactly like a normal Boundary option, but offer a very aggressive payout and a very strict boundary, making these high yield options highly tempting, and challenging in equal measure.
Binary Options

Binary Options Education

Learn to trade Binary Options at the TradersAsset Academy

Binary Options trading has become increasingly popular in recent years. The ever-growing acceptance of financial trading is largely a result of accessibility. As connection methods and the quality of devices improve, so does our ability to connect to a number of fantastic binary option brokers. Finding a great broker is only part of the journey for new and aspiring traders. The way to get the most from your trading experience is to invest in your education. Understanding the tools and instruments available to you will enable you to have a long and profitable trading career. The team at TradersAsset are committed to helping you get the most from your trading career. This is why we have presented on a number of useful topics here for your reference.

Introduction to Binary Options

What are Binary Options? How do they work? What are the commonly used terms and phrases in Options trading? Learn what makes up a Binary Option and how they can increase your trading profits.

Binary Options Trading Instruments

What is a High/Low option? How do One Touch options work? What is risk management and how can a Boundary option help? How can you monetise a volatile market using Short Term options? Understanding the core tools and instruments provided in Binary Options is the best way to learning how to apply them within your own trades.

Technical and Fundamental Analysis

Binary Options assets include Commodities, Indices, Currency Pairs and Stocks. The central premise behind Binary Options is to have a number of assets that have varying values. This means that virtually any asset can be used, but a winning trade can only be made by making educated investments. Traders may educate themselves by paying attention to macroeconomic, socioeconomic and geopolitical issues, or conducting an in-depth technical analysis of the past trends of the underlying asset. We delve deeper into each of these methods and explore the best practises to help generate you with the best results.

Binary Options Strategy

Binary Options trading online is like any other form of trading, in that it contains a number of strategies that may be used to generate traders with profits. Some of the more popular strategies include Binary Options Ladder Trading, Trading on Trend Lines, understanding and using Bollinger Bands, understand how to apply Fibonacci Resistance Lines and so on.

Binary Options

Finpari Review

Finpari is an exciting binary options broker that was founded in 2014. They are proving themselves to be a force to be reckoned with in this competitive space. We’ve narrowed the reasons for their success down to using a proven platform, offering multiple banking options/quick withdrawals, but mainly – their diligent approach to looking after their customers. They seem to truly value and work with their traders to ensure your trading experience is second to none.

The company was founded by a group of individuals from the financial markets. This is one of our preferred scenarios for online broker ownership, as it means Finpari benefits from the experience of professionals that understand what you need. They focus on providing you, the trader, with the tools required to help you succeed .

The company has registered offices in the Seychelles under the company Lerona Impex SA. They also have a second company registered in Scotland called Norske Inter LP. Despite the multiple offices and size of their operations, Finpari is unregulated and operates as an offshore broker. The platform is open to traders from ALL REGIONS, except the USA. They have however operated with huge success in providing services to traders from across the rest of the world. Their banking is conducted within Europe, and in a practise found with regulated brokers, they also separate operational and customer funds, thereby safeguarding your investments.

Customer service seems to be paramount for Finpari regardless of the experience/deposit amounts of their traders. I also found out that the team at Finpari are incentivised to help traders make money – a truly refreshing bit of knowledge which explains their eagerness for support and account management of a high standard. This also means the broker is perfectly suited for less-experienced traders. High volume/value traders are also very much catered for here and a number of tools necessary for successful trading are provided.

Trading Platform and Features

Finpari is powered by the Spotoption Spot 2.0 platform. This is a fantastic, and well proven piece of software. It requires no download and it is very intuitive. The platform is web based, and also available as an app on both Android and iOS devices. This makes trading possible anytime and anywhere. You can access your account, place trades, and track your open and expired positions directly from your phone. The Spot 2.0 platform is also optimized for mobile web use, so it works equally well with your mobile browser. The platform truly does shine, not to mention the mobile variants make trading at Finpari highly suitable and convenient for traders with busy schedules.

We have no hesitation in recommending Finpari for use by both beginners and experienced traders alike. With seven trading tools based on different strategies, and the functionality to trade using one or all of the tools simultaneously, the broker works well on both short term (30 seconds) and long term (one year expiration) strategies. The investment amount per trade is also highly attractive as it starts from as little as $1 and goes up to $1500. This safeguards traders and allows you to exercise a risk management/scalping strategy with your funds. If you wish to make larger trades, simply ask your on-screen livechat support representative for more information.

You can trade your own strategies as an experienced trader or use all the tools provided by the platform to succeed. An example of this is the standout “Spot Follow” feature. This allows you to monitor Finpari’s most successful traders and copy their trades/positions for optimal results.

Trading Accounts and Payouts

Finpari offers 3 types of accounts, each with 1-hour withdrawals, full access to their invaluable support team and a number of other account-specific benefits. The minimum deposit amount is $250, however, the account-type you are assigned depends on your deposit amount; the higher the deposit, the better the account type/perks. Note: The 1-hour withdrawals are a unique feature to Finpari.

All traders are also entitled to a demo account, which can be requested after your first deposit. The demo account will allow you to get a feel for the platform and practice your strategies within the same trading environment as the real account.

Trading Account Types:

A deposit of $250 – $999 will provide you with access to the Bronze account. This provides access to a demo account and a trading course (e-book and video). You also qualify for a 20% bonus on the invested amount.

Deposits of $1,000 – $2,999 will provide you with access to the Silver account. This account also provides you with access to a demo account and a trading course (e-book and video). What sets this account apart is the benefit of a 50% bonus on your deposit amount, 3 risk-free trades and a Master Class Web training session. You may also be eligible for trading protection (%-based return of funds lost. Ask your account manager for more details. Terms and conditions apply).

Deposits of $3,000+ will provide you with access to the Finpari Gold account. This account comes with a very attractive 100% bonus on your deposit amount. You will also benefit from all the perks of the Silver account, but also a personal account manager. This will make a huge difference to the progression/success time-frame of less-experienced traders, and provide assistance in managing more complex trades/strategies of more experienced traders. All Gold account holders will also receive a prepaid credit card to streamline the deposit and withdrawal process.


Banking Options

Finpari offers a huge variety of trusted payment methods for both deposits and withdrawals. Payments can be made through all major credit and debit cards, including AMEX. In addition, Finpari provides alternative payment methods, such as Neteller, Bitcoin, UnionPay and a number of others.

You may fund your account by using any currency, but trading accounts are only offered in three major currencies: EUR, GBP and USD. The deposits can be made by using credit/debit cards such as AMEX, wire transfer and e-wallets. The minimum deposit is $250 and there is no maximum deposit limit. Finpari was one of the very few brokers that worked with PayPal, however they have since replaced this with specialist wallet (and my preferred deposit method); Neteller. This and other e-wallets they partner with make handling payments secure and easy. The extensive list of banking options is a great indicator of the financial stability at this broker.

The biggest selling point, and highly attractive feature of Finpari, is the speed that withdrawals are dealt with. The broker processes withdrawals within one hour of their approval, (approval is also a speedy process). This is a unique feature for Finpari and provides traders with the opportunity to manage their funds as it suits them.

Withdrawals are processed back to the origin/source of deposit. Therefore, traders using bank wire to make deposits will receive funds back into their funding bank. The same applies to credit card deposits, however, any funds above the initial deposit amount will be forwarded to an available e-wallet such as Neteller.


As you can tell by this positive and glowing review; we are fans of Finpari. It’s hardly surprising, as they really are a well-rounded package!

Benefits Summary:
Open to all regions except the USA (since December 2016)
Numerous popular deposit options & 1-hour withdrawals (unique to Finpari)
Proven technology providing multi-platform trading
Truly spectacular multi-format trading support

Finpari is one of the only binary options brokers open to traders throughout the world. There are very few brokers that offer this freedom, collaborate with major payment systems, and provide this level of speedy transaction handling.

Our research also indicates that the company has invested heavily in their infrastructure and financial backing, providing additional security to traders. We tested their communication, efficiency authenticity, and Finpari passed all of these admirably. It gives us great pleasure to rate this broker with the four stars.