Advanced binary options are a variation of the standard Up/down binary options. The difference between both is the way the trader selects the expiration date of the option. With the Advanced binary option the trader has now the possibility to determine the end date of the option. This in contrast to the normal Up/Down binary option, where the trader can only choose out of predetermined expiry dates. The Advanced option gives the trader total flexibility on choosing the duration of a binary option. The trader can choose from a duration of 5 minutes to 1 month.
The Advanced binary options are therefore ideal for traders that want to trade with fixed duration periods and also for those who prefer more long term expiration dates, like an end date in the middle of the week.
How to select the Advanced binary options?
When you go to the Traderoom of abcOptions, then you will have to select the Advanced tab in order to start trading with the Advanced binary options.
How to trade an Advanced binary option?
You execute an Advanced binary option in the following 6 steps:
1. Select Asset
You can select an asset by pressing at the selected asset at 2. and scroll through the drop down list of assets or by selecting an asset from the asset list on the left of the Traderoom.
You can filter (1.) this asset list by showing only Currencies, Stocks, Commodities, or Futures, or you let the list show All assets.
Important is that the selected asset is shown at the asset field (2.). From this asset the chart will be displayed. In the image below the selected asset is the EUR/USD.
All available assets for the Advanced binary options are listed in the Advanced tab of the Asset list page with their trading hours.
2. Choose Call or Put
When you predict the price of the selected asset to go up, then you choose for Call (1.). When you expect the price to decrease, then you go for a Put (2.)
After you selected Put or Call, you determine the amount to invest and the duration of the option.
3. Insert investment
The amount you want to invest in the option has to be filled in at the Amount field.
4. Determine the duration of the option
The uniqueness of the Advanced binary option is the free choice of the term of the binary option. The choice of the term is divided into three different periods: ShortTerm, MidTerm, and LongTerm.
4.1 ShortTerm duration
The ShortTerm duration gives you the possibility to choose an option duration of 5 minutes up to 60 minutes, at intervals of 5 minutes. The desired duration is set by moving the button on the bar, so that the expiration time, which is visible under the bar, is adjusted.
4.2 MidTerm duration
The MidTerm duration gives you the possibility to choose an option duration of 1 hour up to 24 hours, at intervals of 1 hour. The desired duration is set by moving the button on the bar, so that the expiration time, which is visible under the bar, is adjusted.
4.3 LongTerm duration
The LongTerm gives you the possibility to choose an option duration of 1 day up to 1 month in the future, at intervals of 1 day. The desired duration is set by clicking on the date, then a calendar will appear. In this calendar, you can choose the day when you want the option to expire. After you made your choice, the expiration date of the option is visible.
5. Payout risk control
At payout you can choose to recover a portion of your investment in case of loss. By sliding the button to the right on the bar, you can insure up to 20% of your investment, in order to reduce your risk.
6. Execute trade
By pressing BUY you add the Advanced binary option in the trading system. From now you will have to wait until the chosen option duration is finished to, hopefully, enjoy your profit.
Which assets are available for trading Advanced binary options?
The table below shows the available assets with which you are able to trade with Advanced binary options.
|EUR/USD||Crude||Dow Jones||Apple||S&P Future|
|GBP/USD||Gold||NASDAQ 100 Future|
|Bank Of America|
|Coca Cola Co|
The (up to date) list of available assets that can be traded with the Advanced binary options can be found on the Asset List page. The trading hours of an asset can be viewed by clicking on the asset.