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 selecting an asset in the list at 3. and scroll through the list of assets on the left of the Traderoom.
You can filter (1.) this asset list by showing only Currencies, Stocks, Commodities, Futures, All or a Custom list of favorite assets. This custom list you can create by pressing the (2.) filter icon.
As soon an asset is selected, the price development is shown in the chart. In the image below the selected asset is the EUR/GBP.
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. When you expect the price to decrease, then you go for a Put.
After you selected Put or Call, you determine the amount to invest and the duration of the option.
3. Insert investment, Duration and Payout
The New Trade window opens up after having select Put or Call. In this window you set the (3.) amount you want to invest in the option, the (4.) duration (expiry time/date), the (5.) payout when winning/losing the trade, and the actual (6.) execution of the trade.
The New Trade window contains the following info that needs to be checked and fields to be inserted before pressing on (6.) Buy:
- Action: shows if your trade is a Call or Put option
- Strike Level: shows the strike rate for which you will purchase the option
- Amount: how much money you invest in the option?
- Duration: By default the duration is set at Short term 5 min. You can change to duration in Short term from 5 to 60 min with an interval of 5 min, in Mid term from 1 hour to 24 hours with an interval of 1 hour, or in Long term from 1 day to 1 month with an interval of 1 day (see below more details about the Short, Mid, and Long term).
- Payout: by default the maximum profit (when winning the trade) is selected, but you can get up to 20% of your invested money back in case you lose the trade.
- Buy: Press the button to execute your trade
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: Short term, Mid term, and Long term.
4.1 Short term duration
The Short term 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 Mid term duration
The Mid term 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 Long term duration
The Long term 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. When your trade is executed a Green box is displayed in the top right of the traderoom, showing TRADE SUCCESSFUL.
6. You will now find the new trade back in your Open Trades.
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 in the Traderoom and on the Asset List page. The trading hours of an asset can be viewed by clicking on an asset in this list.