1

Welcome to
Binary Options




Sections

1. Trading Online
2. What is a Binary Option?
3. Why Trade Binary Options?
4. Binary Options: Trading Basics
5. Getting Started
6. Binary Option Assets
7. What Affects Binary Options?
8. Trading Tools
9. Basic Trading Strategies
10. Trading Tips
11. Conclusion
12. Key Terms




2

1. Trading Online
One of the most popular methods of earning money from home is via
online trading. Up until recently, the global markets have been barred
from much of the international population by exceptionally high entrance
fees and the necessity to learn overly complex trading techniques. As in
so many other areas, the internet has brought in the welcome
competition driving down entrance fees and streamlining the trading
process so that anyone can be part of the global market.

Online trading offers anyone, from anywhere across the globe, the
chance to enjoy the opportunities that had previously been reserved for
professional traders all it takes is a computer, an Internet connection as
well as a bank account and youre ready to begin trading. This simple
method of trading can be done in one of three ways. This book will focus
on one of the most popular trading types of them all Binary Options
trading.

However, before you begin trading Binary Options, it is strongly advise that
you take the time to read through this eBook and learn about the
different aspects of trading Binary Options so that you can start trading
with minimum risk to your investments.









3


2. What is A Binary Option?
Binary means two, and option means a choice with a direction. In the
trading world, when you invest in a Binary Option you are investing in the
predicted movement of two possible movement of an assets,
commoditys, stocks or currencys direction. Binary Options have a
number of different names, including "all-or-nothing" options and "digital
options". Each of the names represents the core concept behind Binary
Options they are a straightforward yes/ no proposition with a
predetermined percentage pay-out.

Trading Binary Options is easy to learn and a quick skill to master, allowing
even those with no previous experience to benefit from fast profits by
using simple yes/ no decisions regarding a given asset. Furthermore,
OptionFair

offers traders many advantages over other forms of market

trading, such as higher pay-outs, 60 second trades and mobile trading.

Each Binary Option trade has a predetermined expiration time. Once the
expiration time is reached, the option can end in one of three positions:
In-the-money, where the predetermined profit is successfully made,
out-of-the-money, in which the invested amount is lost, or in very rare
occasions the Binary Option can expire at-the-money in which the
investment will be returned in full with no profit or loss.







4

OptionFair

provides traders with a unique ability to profit greatly within

short periods of time using many well-known assets (these include
currencies, indices, stocks and commodities) and a simple user interface
that is backed by the established TechFinancials company. Often, traders
select the instrument they wish to use based on their own personal trading
skills and entrepreneurial knowledge.

There are a three of different trading instruments available to Binary
Options investors:


1. High/Low An instrument used with the trader positing whether the
underlying asset will be above or below the target price when the
option expires.








5


2. Boundary - An instrument used with the trader hypothesizing if the
underlying asset will be located inside or outside a specified range
at the expiration time (formed by a lower and upper target price).



3. Touch/No Touch - An instrument used with the trader predicting
whether the underlying asset will reach the target price (Touch) or
won't reach the target price (No Touch) during the lifetime of the
Binary Option




6


OptionFair

has expanded its instrument catalogue, exclusively offering

Binary Option traders 3 more high-yield variations of the instruments listed
above, including High-Yield Touch, Above/ Below and High-Yield
Boundary. Each of these additional instruments allows greater versatility
in trading as well as a higher potential for profit.


3. Why Trade Binary Options?
The benefits of trading Binary Options are three-fold:
1. Simplicity of Trading with Easy to Use Tools
2. Fast and Immediate Return on Investments
3. Profit Possibility Regardless of Up or Down Trends

Understanding the details of each benefit can not only help investors
trade wisely, but can give them a better grasp of what exactly it is they
are investing in.

1. Simplicity of Trading with Easy to Use Tools

One of the top reasons Binary Options has experienced so much
popularity so quickly is how easy it makes trading assets. Binary Options
trading manages to strip away much of the complexity offered by other
trading types. By ensuring that trading is narrowed down to only the most
fundamental elements, Binary Options are an extremely accessible form
of trading that offers unparalleled ease-of-use.




7


The unique simplicity offered by Binary Options also ensures that regardless
of your financial background, Binary Options can be easily mastered.
Although the interface varies amongst different brokers, OptionFair

is
backed by TechFinancials, one of the leading online trading providers,
and has gone to great lengths to ensure that the technology behind our
trading arena is not only reliable, but can be easily used by anyone
seeking quality financial services.

Unlike many other forms of trading that require considerable funds to
begin trading, OptionFair

offers minimum deposits as low as $250, offering

aspiring entrepreneurs from all financial backgrounds a chance to enter
the exciting and rewarding world on online trading.. Furthermore, Binary
Options offer considerably more efficient risk control tools when
compared to other forms of trading.

OptionFair

provides its traders with a fully equipped financial service for

trading Binary Options. Aside from the care and support offered by our
dedicated support team, OptionFair

is maintaining a transparent
environment with no hidden charges or commissions on trading.

2. Fast and Immediate Investment Returns

Perhaps one of the most alluring benefits of trading with Binary Options is
that unlike with a bank (as discussed earlier) or usual asset investments, up
to 85% profit can be made in under a minute. 60 second trade tools as
well as End of day options which expire at the end of the day, End of
Week options which extend from Monday to Friday and Weekend



8
Options which open on Saturday and close on Monday giving the
traders the power to decide when they want to cash in on their
investments.

3. Profit Possibility Regardless of Up or Down Trends

Binary Options also offer a very appealing concept in that traders are
able to profit regardless of the markets performance. Even if an asset is
losing its value, Binary Options traders are able to profit just as easily as if it
was increasing in value. While this sounds simple, this is probably the most
important and unique advantages of trading Binary Options as with
todays frequently declining economies investors are able to turn a profit
even during, or perhaps more so during, the worst depressions.

You are about to enter an exciting world full of possibilities to learn and
profit. Trading Binary Options is the ideal entry point to the global markets
and it maintains its popularity with veteran and beginner traders alike.


4. Binary Options: Trading Basics
As explained earlier, Binary Options are one of the most simple and
profitable forms of online trading. To understand what Binary Options are
really all about, lets consider the following situation:

Assume that you have $1000 available for investment. Using standard
investment avenues that are usually offered to us, we would consider
placing the funds in the bank so that we can profit from the interest paid
back to us by the bank for letting them hold on to our money. If this bank



9
offers a 5% yearly interest rate, we can expect to earn $50 by the end of
the year.

Alternately, we can choose to invest in Binary Options. Typically, Binary
Options offer up to an 85% fixed pay-out on an investment within minutes,
meaning that your initial $1000 can turn into $1850 by the time you get
back from your coffee break!

To make the example clearer, lets use a real-world scenario that can
illustrate the point. One of the most attractive assets in Binary Options is
oil. In a typical Binary Option, we can choose whether the price of oil will
go up or down in the next 15 minutes. Based on our prediction, we
choose either high or low and select our investment amount ($1000). If
our prediction is correct, we have earned $850 in 15 minutes.

However, to enjoy the most success possible; traders need to do more
than just guessing the right direction. For example, if we know that OPEC
(Organization of the Petroleum Exporting Countries) is preparing a new
round of financial sanctions against oil exporting countries and that the
announcement is scheduled for today at 15:00 GMT, we can expect oil
prices to react. Usually, these situations cause oil prices to soar due to the
fears of oil supply being compromised, giving us a good opportunity to
turn a quick profit. Using our knowledge, we can select low from the
High/ Low tool after the publication with more certainty that our
prediction will be correct. If there is an OPEC announcement but their
position on the subject is unclear, we can take advantage of the market
volatility created by the event and using the boundary instrument, select
"out"(out of a specific range of prices). When trading Binary Options, we
do not actually buy the asset, we simply speculate on its price.



10

To compare and understand the two examples given at the beginning of
the chapter, lets review them according to 3 key factors:

1. ROI (Return On investment) The percentage of expected profit. If
we invest in the bank, we will receive a yearly profit of 5%. If we
invest in Binary Options, we have the opportunity to profit by 85%
within minutes.

2. Lock-In Period The time your investment remains locked before
you can profit from it. If we invest with the bank, we cannot actually
touch the money without decreasing the 5% profit. Alternately,
Binary Options investments are locked only until the contract
expires, which is usually in minutes.

3. Risk The possible loss of our investment. Depositing money into a
bank carries minimal risk, however it also offers miniscule ROI. On
the other hand, investing in Binary Options always carries a risk of
losing the investment.

To conclude, it is safe to say that the bigger the risk, the bigger the
reward. As illustrated above, trading options offers both advantages and
disadvantages. Banks offer steady but very low revenues over a very long
period of time as opposed to trading with Binary Options which offers
significantly higher revenues in a short amount of time while taking on
added risk to the investment.






11

5. Getting Started
Simply put, finding success through trading Binary Options is all about
educated speculation regarding the direction in which an asset is likely to
move. There is no purchase of the actual asset, only a simplified form of
trading that allows for profit with a limited budget and no special
requirements.

Before doing anything, you must first log in to your OptionFair

account by
going to www.optionFair.com. Next, enter your details in the upper-right
section of the page. To demonstrate Binary Options trading, we must first
select an asset. Assets available at OptionFair

include currencies, stocks,

indices and commodities, with new assets being added regularly.

To use in an example, we will trade the Euro-Dollar index. Upon selecting
the asset, we will be prompted to choose the type of Binary Options
instrument wed like to use. In this case, we will select high/ low. To use
this Binary Options instrument, a trader needs to speculate regarding
whether they think the asset will be higher or lower than the strike Price at
the expiry time.

There are 4 primary details needed to start trading (here, using Euro-Dollar
as the underlying asset):

1. Expiration Time - in 15 minutes
2. Assets value at time of purchase - 2,164.46.
3. Investment Amount - $1000
4. Return 85%



12



At this point we can do one of two things Purchase a high option or a
low option.

A. . Low A target price of - 2,164.46 is offered. If the asset expires
below this strike price, the option will expire in-the-money (profit).
If the asset expires above the strike price, the option will expire out-
of-the-money (loss).

B. High A target price of -2164.46 is offered. If the asset expires above
this strike price, the option will expire in-the-money(profit). If the
asset expires below the strike price, the option will expire out-of-
the-money (loss).







13



Different Instruments

If we were using the touch instrument, we would select Touch if we
believed that the market would touch the target price at any time before
expiration or No Touch if we believe that the market will not touch the
target price any time before expiration.

If we were using the Boundary instrument, we would select In if we
believed that the market price would close within the upper and lower
target prices at expiration, or Out if we believed that the market price
would close outside of the upper or lower target prices at expiration.

This example demonstrates the simplicity and core concepts behind
trading Binary Options. We must first select an asset, the type of Binary
Options instrument, the direction in which we speculate the asset will
move, and finally, the investment amount. Using these simple steps,



14
traders will be able to execute trades with increased risk control and
greater opportunities to profit.

1. Choose Asset 2. Choose Direction 3. Insert Amount & Buy


6. Binary Option Assets
One of the most appealing features in trading Binary Options is the fact
that it can be applied to virtually every type of asset. OptionFair

provides
traders with the ability to experience nearly every type of market through
a simplified interface that is geared towards increased risk control and
higher profits.

Binary options assets are divided into 4 categories:

Currencies Much like the foreign exchange industry, Binary Options allow
speculation over a currency pairs performance. Unlike the foreign
exchange industry, Binary Options provide greater profits in shorter time
frames coupled with the security of knowing that the investment amount
is final and that even if the investment has been lost, no further losses can



15
incur. OptionFair

offers Binary Options trading on an exceptionally wide

variety of currencies, including the majors (such as EUR/ USD, GBP/ USD,
EUR/ J PY, and many more) as well as some of the more exotic currency
pairs such as USD/ TRY and EUR/ NOK.

Stocks The available list of stocks available for trading with Binary
Options may vary greatly between brokers. OptionFair

prides itself on
having one of the most impressive stocks catalogues in the market.
Combined with Binary Options, stocks trading on assets such as Google,
Facebook, BP and Apple have become an increasingly profitable
investment, and are all readily available on OptionFairs

trading service.

Commodities The commodities market is one of the most interesting due
to its two-way relationship with the geo-political climate. Using
OptionFair

, traders will be able to trade assets such as Gold, Silver and

Crude Oil with speed and versatility available nowhere else.

Indices Indices are widely regarded as an effective means for trading
Binary Options. The indices constant liquidity also make them an ideal
choice for hedging, as well as lower taxation policies which ensure that
they will always be a preferred asset category. The six most notable
indices include:

The Dow Jones Industrial Average, which includes the 30 most
traded Industrial stocks in the NYSE (New York Stock Exchange),
such as Coca Cola, Amex and Microsoft, amongst many others.
The NASDAQ (National Association of Securities Dealers Automated
Quotations) is considered by many to be the biggest index.
Composite Index includes over 3000 components and is regarded



16
as an indicator of the performance of technology and growth
companies stock.
The S&P (Standard & Poor's) 500 is a stock market index based on
the common stock prices of 500 top publicly traded American
companies.
The DAX (Deutscher Aktien IndeX) 30 is a blue chip stock market
index consisting of the 30 major companies from the Frankfurt Stock
Exchange.
The FTSE (Financial Times Stock Exchange) 100 is a share index of
the stocks of the 100 companies listed on the London Stock
Exchange with the highest market capitalisation. It is one of the
most widely used stock indices and is seen as a gauge for business
prosperity.
The Nikkei 225 is a stock market index for the Tokyo Stock Exchange.
The Nikkei is the most widely quoted average of J apanese equities,
similar to the Dow J ones Industrial Average in the US.



7. What Affects Binary Options?
Investing with Binary Options is all about your ability to predict market
trends, up OR down. First we must determine when the price is low and
when it is high. This section will detail some of the different techniques to
analyse the markets and global trend-setting events that can drastically
affect the markets.






17

Fundamental Analysis
Fundamental analysis is about using real data to evaluate an assists
value. Although most analysts use fundamental analysis to value stocks,
this method of valuation can be used for just about any type of asset.

For example, an investor can perform fundamental analysis on stocks by
using revenues, earnings, future growth, return on equity, profit margins
and other data to determine a company's underlying value and potential
for future growth.

Technical Analysis
Technical analysis refers to the process of using previous trading data and
price movements to determine how similar investments have behaved
with similar price movement patterns. Once a pattern is detected, a
trader can predict (to a certain degree of certainty) if the investment has
high or low chance of becoming profitable. In short, this type of analysis
revolves around recognizing previously seen patterns and acting upon
them with the expectation that a similar outcome is likely.

Geo-Politics
Geo-politics is a form of fundamental analysis and focuses on political and
governmental effects on assets. Using historical events and their effect on
the market, a trader can focus on the social, economic and political
elements that can increase supply, thwart demand, and vice versa. When
performing this type of analysis, traders will look into a variety of economic
indicators, such as interest rates, inflation rates, GDP, and many more. For
example, take a moment to consider the effects of war in the Middle East
on the global economy and specifically on oil prices.



18

Financial Indicators
As stated earlier, fundamental analysis relies heavily on economic
indicators for any prediction. Interest rates are a prime example for an
indicator that is vital to trading currencies due to their effect on a
currencys value. Furthermore, its a good idea to be familiar with some of
the political/ economic agendas of the current governments in power as it
may provide a clue as to where financial policies are heading and how it
will affect the currencys value. The current state of the European
economy is a testament to the importance of this knowledge. Even if a
trader is not an expert on world politics and economic climates, it is
advised to have a general idea of the state of matters affecting an asset
before investing.


8. Trading Tools
When trading at OptionFair

, traders are treated to the highest quality

indicators available. These indicators will help traders make the right
choice at the right time, and will be an integral part of your trading
success.

Charts/Indicators
Charts are widely considered to be an absolute must when it comes to
Binary Options trading. They provide a graphical representation of market
data and give us a good sense of the general performance and direction
that the asset is taking. Technical analysis is based on charts and the
graphical representation they provide regarding an assets performance,



19
making them one of the most important aspects to consider when trading
Binary Options.

Signals
A Binary Options signal is usually a paid service that works by mirroring the
trades of a system or an existing trader with proven experience and
executing them on your behalf automatically. It is imperative to make sure
that the signal provider is reliable and has a good track record. Otherwise,
the risk outweighs the benefits by far.

The Media
The media is a great source for information regarding indices, currencies
and commodities and stocks in particular. An upcoming announcement
from a major tech company has a great deal to do with the stocks
performance. A typical example is the almost immediate fall in Apples
share value after the announcement of a new product line, with values
rising up as the actual release of the products gets closer and closer.

Furthermore, the media is a great source for any fundamental analysis-
related information regarding political unrest or economic strains
expected to affect the market.











20

9. Basic Trading Strategies
Trading Close to Time of Expiry
This Binary Options trading strategy involves waiting for the minimum
amount of time left until an option expires and then entering a trade.
Generally, Binary Options may open up long before trading is closed;
giving those who wait more validity in their prediction regarding the
direction an asset is taking.

Event-Driven Trading
This trading strategy is actually a form of fundamental analysis. It involves
trading based on real-world events that can affect an assets price. A
typical example may include major economic announcements that are
known to affect an asset, such as interest rate announcements and
employment rates, amongst others.

Opposite Trading - Hedging
This trading strategy involves buying an opposite Binary Option to your
position in order to minimize the risk even further. For example, if trading a
high option on an asset, using this strategy will have you place a low
position as well, thus decreasing the risk to your capital. However, it should
be noted that while risk is decreased, profit is decreased as well. One of
the ways to overcome this issue is to trade with assets that allow for early
closure allowing you to close one of the opposing trades if and when
you are relatively certain that it is likely to move in a certain direction.






21

Trading Based on Forward Markets
Trading occurs at all times due to the fact that different trading centres
around the world are open at different times. Using this strategy, traders
will look into earlier-opened markets and their assets (such as the NIKKEI)
to determine the expected reaction in different assets once trading has
opened in other parts of the world. Keep in mind that this strategy is only
relevant during market openings and has little to no effect at later times.


10. Trading Tips
Be Familiar with the Underlying Asset
As explained earlier, Binary Options derive their value from the underlying
asset (such as oil). Therefore, it is advisable that before entering a trade
with any asset, you should learn as much as you can about the asset:
what affects it, where it is traded as well as any other information that can
aide you in predicting an assets behaviour.

Use Early Closure Wisely
Minimizing damages from unsuccessful trades is a crucial aspect to
sustaining a long and profitable trading career. Therefore, closing a losing
position is advised for it will diminish your losses and allow for more
successful trades in the future. Furthermore, with time you will learn to
identify the correct situations to employ this feature, vastly reducing losses
in the long-term.






22

Risk vs. Reward
Trading Binary Options provides great rewards, but it is not free of risk.
Generally speaking, the higher the pay-out on any given option, the
bigger the risk taken when investing. Therefore, the correct strategy is to
weigh in each option and consider the reward as well as the risk
associated with it.


11. Conclusion
The core concept behind trading Binary Options may be fairly simple, but
there are many aspects that effect assets and therefore the outcome of a
Binary Option. We strongly encourage traders to read through some of
the more technical parts of this book a second time prior to trading so
that you can avoid any loss due to lack of experience. If you have any
questions regarding OptionFairs

services, please dont hesitate to

contact us at [email protected].

The world of trading Binary Options is an exciting opportunity for those
seeking a new way to enter the global markets with ease. The interface,
simple and versatile, offered by OptionFair

provides you with every tool

needed to trade successfully, and our dedicated support team is always
ready to provide support on every front.

OptionFairs

platform has been designed so that traders have the finest

trading interface available for Binary Options. OptionFairs

goal is to offer
the end-user with a wide range of financial instruments and assets aimed
at providing the ultimate trading experience.



23

OptionFair

offers up to 85% profit on many assets, 60 second options for

quick trading, as well as Android and iOS solutions for trading on the go.
Furthermore, OptionFair

is always looking at new ways to provide more

value for traders, so be sure to check our available promotions from time
to time.



12. Key Terms
At-the-Money One of three terms used to describe an options current
status in terms of its ability to generate profit. At-the-money refers to a
situation in which the options target price is identical to the underlying
assets price. If an option expires in this status, the investment amount will
be returned.

Binary Options The assets used in a specific type of market trading that
offers a fixed pay-out for the prediction of simple yes/ no propositions. For
example, a typical binary option would ask if the underlying asset, such as
Gold, would rise or fall in value and offer an 81% return for a correct
prediction.( Also known as all-or-nothing, digital and exotic options.)

Boundary Instrument A tool used in trading binary options whereby a
trader must try to predict if the underlying asset will reach a value that is
within or out of a specified range of values when the option expires.

Early Closure A feature offered by OptionFair

that allows traders to exit

an option prior to the decided expiration time for a reduced return.



24

Expiry level Refers to the underlying assets value once the option
expires.

Expiry time The specific predetermined hour and date when the time
allotted for estimating the direction of an assets market value closes.

High/Low Instrument A binary options trading instrument in which a
trader must predict if the underlying asset will reach a value that is above
or below the strike price when the option expires.

In-the-Money One of three terms used to describe an options current
status in terms of its ability to generate profit. In-the-money refers to a
situation in which the underlying assets value will generate profit. For
example, when selecting high on the high/low instrument, the option will
be in-the-money if the underlying assets price is above the target price.

Investment Amount The amount of capital invested in a single binary
option.

Market Price The current value of an underlying asset.

One Touch Instrument A binary options trading instrument in which a
trader must predict if the underlying asset will touch a specific value prior
to expiration or not.

Out-of-the-Money One of three terms used to describe an options
current status in terms of its ability to generate profit. Out-of-the-money
refers to a situation in which the underlying assets value is such that it will



25
not generate profit. For example, when selecting high on the high/low
instrument, the option will be out-of-the-money if the underlying assets
price is below the target price.

Return The amount given back to the investor once an option expires
in-the-money. For example, if investing 1,000 in an option that offers an
81% return, the trader will receive 1,810 in returns (810 in profit) if the
option expires in-the-money.

Target Price (Also known as the strike price) a term representing the
value that an underlying asset must reach in order for an option to end
in-the-money. For example, when using the one touch instrument and
selecting touch, the option will end in-the-money if the underlying
asset touches the target price.

Underlying Asset The asset used by OptionFair

to provide a binary
option. For example, with a binary option that speculates about the price
of oil, oil is the underlying asset. OptionFair

offers trading on underlying

assets such as currencies, commodities, indices and stocks.