Binary Options FAQ
What are binary options?
Binary option or also known as digital options are fixed return financial trading instruments. The term binary emphasises that there can only be two options in the trade.
What is an asset?
Assets are the financial instrument varieties available to you via are binary options platform. At GFM Trader you can trade currencies, indices, stocks and commodities. For example the EUR/USD, coffee, Google stocks, SAP are all different varieties of assets you can trade.
What are the profits in binary option trades?
Binary options bring fixed rate returns on winning trades. At GFM Trader successful option trades can bring revenues up to %81 of your investment on the trade position. For example, if a EUR/USD trade of $1,000 goes in your direction you can have 81% profit at expiry, being a profit of $810 increasing your traded amount to $1,810.
What is a Call (Buy) option?
Call options are the purchase of option contracts where you forecast the price of the option to be higher than the transaction price by the end of the expiry period.
For example, if you purchase a Call option contract on the EUR/USD at 1.29567 with an expectation of a higher price by the end of the 1 hour expiry period and your analysis turns out to be correct, then at the end of the 1 hour you would profit from the transaction up to 81%.
What is a Put (Sell) option?
Put options are the purchase of options where you forecast the price of the option to be lower than the transaction price by the end of the expiry period.
For example, if you purchase a Put option contract on the EUR/USD at 1.29567 with an expectation of a lower price by the end of the 1 hour expiry period and your analysis turns out to be correct, then at the end of the 1 hour you would profit from the transaction up to 81%.
What is a loss?
Should your option trade, whether it is a Call or a Put contract, go against you and the option expires, then a loss is incurred. On the GFM Trader platform you are able to see your gains and losses before you enter the trade, thus giving you foresight as to both possibilities before you even click a button.
What is a profit?
Should your option trade, whether it is a Call or a Put contract, go in your direction and the option expires, then a profit is incurred. On the GFM Trader platform you are able to see your gains and losses before you enter the trade, thus giving you foresight as to both possibilities before you even click a button.
No gain no loss trades?
No gain/loss trades are rare but sometimes do occur. When your trade price and the expiry price are the same the trade has no profit or loss and thus is called no gain no loss. In these cases your initial investment is returned to your balance immediately.
What is an option period/ date?
All options have a contractual time period that expires and ends the transaction. This period is called the option period or date. Options can be as short as 15 minutes to several weeks.
What is an option expiry period/ date?
When the contractual period ends the option is known to have expired. At the expiry time the trade is automatically closed on the platform resulting in profit or loss.
Where can I see the expiry time/period?
At the right top side of your trading window you will not a clock that indicates your current destination’s time.
What is the minimum and maximum trade amount?
The maximum and minimum amounts can change from asset to asset. Accordingly if you should exceed a maximum amount or enter an amount below the acceptable investment amount a pop up window will advise you accordingly to change the amount.
How can I see the trade history?
You can see all your trade history from the My Trades page by selecting the date range.
With which assets can I trade?
You can choose any asset you like to place a trade. All available assets are under the Assets list on your trade window. You can choose from a variety of currencies, indices, stocks and commodities.
What are the rates of return?
The rates of return can vary from asset to asset. However, you can view the rate of return on an asset before you enter the trade in the same window where you enter the trade amount, before you enter the trade. This ensures that you are fully aware of the potential profit or loss on the contract.
How can I open an account?
If you wish to open an account please click here and fill in your details. You must accept the terms and conditions before your account is opened. Please note that you must be 18 years or older.
Do I need to make a deposit in order to open an account?
No, you can open and register an account with GFM Trader without depositing any money, however in order to trade you must make a deposit.
Is there a demo account?
If you wish to open a demo account please send us an email us so we may provide you a demo account.