Binary Bets - Time Periods

• Whether a Binary Bet is on an hour's trading period, a day or a week the workings are exactly the same
• For the big volatile contracts like FTSE, DAX, Dow Jones and Nasdaq 100 there are a number of different time periods offered
• Hourly
• Noon
• 3pm for FTSE, DAX
• Daily, and
• Weekly

Example - Hourly Dow Jones Binary

• The time is 3.15pm in London
• The Dow Jones was trading at 10,360 at the start of the hour (3pm)
• You are short term bearish the market expecting it to fall between now and 4pm
• You therefore buy the Wall St Hourly Binary DOWN bet at 66 risking £2 a point
• You are wrong on the trade, Wall Street is trading at 10,370 at 3.59pm therefore the Binary bet settles at zero
• Your loss is 66 x £2 = (£132)
• Remember that the Binary market is always being quoted so you would have always had the option to close out all or part of the bet before 4pm, perhaps at a reduced loss

Individual Stocks

• There are Binary Bets quoted on the bigger FTSE 100 individual stocks
• Share price movement are somewhat less volatile and slower moving than stock indexes so they are quoted on a weekly basis
• The market for Vodafone closing up on a given week maybe trading on a Tuesday at 41-45
• If you expect prices to close up then buy the bet, if you are bearish and expect lower prices (on the week) then short the Binary Bet.
• One Touch and Range Binary Bets are also offered on individual stocks

Other Markets

Binary markets are also quoted on the major currency cross rates such as E/$, $/Yen and £/£ etc
Binary Bets are new so expect more markets to be quoted over time

Commissions, Margin & Rules

No commissions on any Binary Bet, they're built into the spread charged
No margin requirement either. Your maximum loss is known beforehand, if you don't have the funds in your account (or access to them via credit) the bet will not be allowed
Make sure you fully understand the rules such as how the official settlement prices are determined before you trade. You will find this information on your Binary Bet brokers website