Binary options basics
Binary options are the simplest financial instrument for trading globally known markets. Unlike traditional options where an option acts as a contract between two entities to buy or sell an underlying asset (for example, 1,000 ounces of gold) at a predetermined price and a predetermined expiration date, binary options are "everything or nothing" where it matters solely on the correct prediction of direction. The potential profit is set at the time of opening the trade. As for traditional options, where it is not possible to know the amount of risk or trade earnings in advance, the binary options, you know these information in advance, and can determine the exact level of risk of the trade.
This means you will decide whether the price will go up or down for example in the next minute, minutes or hours. You select the amount you want to invest in this trade, confirm the trade, and just wait until the option expires.
They got their name from two possible outcomes of the investment. The options either earn or loose you a predetermined invested amount and does not matter how much the price moved. Let's say you would speculate that the expiration price of an option will be higher than its current value. Then you only need the expiration price to be higher by a one single tick / pip, and you get a full profit.
What if the expiration price is the same as the execution price of the binary option?, in this case you will get back the invested amount in full.
Profits vary for different options. The range can be from 65% to hundreds of percent, depending on expiration and type of option. Typically short-term options (minute to hour expiration) offer an appreciation of around 80%.
This means that if you invest $ 100 in the trade (for example in gold) and the price movement you predicted correctly, you will get back $180. $100 back as the amount invested and $ 80 as your net profit.
What are underlying assets?
Underlying assets are expressed values of shares, commodities, indices or currencies from which options are derived. When buying a binary option, its monetary value reflects the current market value. The most significant assets are divided into the following categories:
- FIAT: all major fiat currency pairs EUR/USD, USD/JPY, GBP/USD, AUD/USD, etc
- Crypto: the world's major crypto pairs such as BTC / USDT, LTC / USDT, XMR / BTC, etc.
- Commodities: The most traded commodities like gold and silver
Types of binary option trades
High/Low Option - binary option
The most basic and simplest type is the High/Low option. With this option, you decide whether your selected asset and its price will grow or fall in the selected time period. So you will ask: Will the market price be lower or higher at the time of expiration than the current value? As we already mentioned, you make a full profit, if the price higher/lower (based on your chosen direction of the trade) by a single tick / pip at the time of expiration.
One touch - binary option
Does the market price of an underlying asset reach the specific price level before time of the expiration of the option? One touch option will earn you if it touches (or breaks) the selected boundary line at any time before the expiration date of the option.
Target prices (lines) are constantly changing with the development of the market price of the asset, but they remain fixed when the trade is executed. The distance of these target prices is marked as "up / down boundary" and is indicated for each one touch option.
Range - binary option
Range indicates that options are traded with respect of a certain range lines. The band is the area defined by the current market price and a upper range line(upper band) or a lower range line(lower band). The trader can therefore speculate whether the market price at the expiration time of the option will be within the selected upper or the lower band. The boundaries of this band are listed for each Range option and are marked as "up / down boundary".
Spread - binary option
Spread indicates the type of the option where options are traded with a certain spread. The spread is defined by the upper and lower spread lines. The trader can speculate whether the market price at the expiration time of the option will be above or below of the selected spread line.
Quick Option - binary option
This type of the option is similar to the High / Low, but it is specific due to the short expiration time, as it can be one minute or even 30s for some assets. So you decide e.g. if in 1 minute the price will be higher or lower than it is right now. Expiration times are usually set as 30s, 60s, 2min, 5min, ... - 60min.
Trading in our platform
You do not have to download any additional software when trading in our platform. The web platform is accessible directly from your web browser on PC, mobile, or tablet and is therefore fast and convenient. After registering your account and depositing funds you can start the trading right away! All you have to do is decide what asset, type of option and estimate the development, up or down. You can trade in the INVEST section
How to trade?
- Choose an option type (Quick option, High / Low, One touch, Range or Spread).
- Choose an asset, 24cryptex offers all major traded assets from EUR / USD currency pairs, gold, silver to crypto currencies.
- Select a trade expiration time. The trade expiration time depends on the trade type and starts from 30 seconds.
- Enter the trade amount. From the amount invested is derived the amount of your earnings. Minimum trade amount is only USD 1. If you choose for example an investment of $ 100 and there will be a payout of 90%, the resulting payout will total USD 190 (invested amount + profit).
- Choose a direction. You will decide and speculate on the rise(up) or decline(down) of the price of the selected asset. If you expect a rise of the selected asset, simply select "up" in the case of decline "down".
- Confirmation of trade. Once you've confirmed the trade, just wait for the result. Within 3 seconds of starting a trade, you can cancel the trade.
- Additionally, our platform offers an opportunity to extend the expiration of the already running trade. The extending of the expiration of the trade is possible for a pre-specified fee, which is shown for the each trade you made. Expiration can be extended for the each trade only once, and you can always choose from three extending options. This allows you to reduce your risk and thus increase the success of your trades.
What are profits from a successful trade?
In the case of a successful trade you will be richer by about 65% - 400% of the invested amount. The percentage of a profit depends on each individual asset type of the trade option and the expiration time, the profit amount is clearly shown and listed for each trade.
For example, if you invest $ 100 and the trade will have the profit 85%, a total payout will be USD 185, which includes the profit of USD 85.
When trying to invest a certain amount, I see the following warning: "Maximum investment amount exceeded". What should I do?
The maximum amount of the investment is limited by several factors. However, traders are not limited by the number of their trades. Therefore we recommend diversifying the portfolio by buying more assets and reducing a risk of losing on one large trade.
What represent the displayed rates/prices?
The value of underlying assets changes very often and this affects the quoted asset price level. The values represent the average asset price according to major global financial markets and crypto exchanges.
What is the expiration time?
The expiration time determines the exact time a binary option expires. Before buying the binary option, the trader chooses the preferred expiration time of the selected asset, ranging from 30s to several days.
What if the price at the expiration is the same as the price at the execution?
If this occurs, i.e. the expiration price of the option is the same as the value at trade execution, the full amount invested into trade is returned to the trader.
Are profits from trading a taxable income?
This generally depends on the tax regime of a country you come from. We can not take tax responsibility for our clients, and everyone needs to know the tax regime of their country.
Why I cannot start a trade?
If you do not have enough funds in your account, you cannot execute the trade The minimum trade value is USD 1. Trading takes place during hours when markets are open, so you can see the price of the asset, the platform will not allow you to execute the trade when the markets are closed(FX currencies are available 24/5, Crypto currencies 24/7)
It may also exceptionally happen that a short-term technical outage will occur, or a platform is being updated . These outages are usually removed and processed very quickly.
What are my minimum and maximum limits for investing in one option?
The allowed value of an investment in one trade ranges from $1 - $ 10,000.
Deposits and withdrawals
How to deposit funds?
Our application currently allows to you to deposit a following crypto into your trading account: bitcoin (BTC) or litecoin (LTC). Crypto deposits are fast, easy and safe. Your trading account crypto wallet addresses are listed and available after login to your account in finance section, Deposit, BTC, or LTC.
- Sign in and click on Deposit Funds in the Finance section.
- Select the LTC or BTC wallet.
- Click on the DEPOSIT and start trading!
It may take several tenth of minutes before the transaction is verified and the deposit is credited. Deposit to to equivalent value of USD 500 are available for trading almost instantly.
To withdraw your funds, just log in, choose a wallet in the finance menu, select a withdraw funds and enter the amount and address of your crypto wallet to which you want to transfer the selected funds. Please note that once the withdrawal of funds is approved, it may take up to 1 business day in exceptional circumstances to verify and approve the transaction to receive the funds.
Which currency can I use in my account?
For greater clarity, cryptocurrencies are shown also as an equivalent of the EUR or USD value, which you can chose and set during account registration.
Do I have to deposit the funds in order to register my account?
Deposit of funds is not necessary for account registration.
How long does it take to process a withdrawal?
The request is usually approved within a few tenth of minutes. Please note that after approval of the requested withdrawal, it may take up to 1 business day to receive funds in some exceptional circumstances. The funds will be sent to your specified crypto address.
Are there any deposit or withdrawal fees?
We do not charge any deposit or withdrawal fees.
What is the minimum amount of withdrawal?
The minimum amount of withdrawal is BTC 0.01, LTC 1
What should I do if I lost / forgot my password?
If you've forgotten or lost your password, click on the start page below the login field "forgot my password".
Then enter your email address and requested identification information and we will send you an email with instructions to set up your new password.
Where can I find trading and transaction history?
Your transaction history, along with other activities related to your account is available in the FINANCE section. If you cannot see the requested data, please check the filter settings.
You can find your trading history under Investments menu. Where you can sort and filter all your trades according to your preferences.
How can I edit my personal information?
You can edit and update your personal information in your account profile menu by clicking on the USER PROFILE under the settings.
Why I cannot log in?
The most common reason is to copy the password including a space before or after the password. Also your browser can store your old password through cookies (please clear cookies). If you still cannot log in, try using a different browser, we recommend Google Chrome
Do I need to download some software so I can use your platform?
You just need a web browser, e.g. google chrome , nothing else is needed.
Emails have not been delivered.
There can be several reasons. The most common thing is that emails end up in your mailbox in a spam folder, or the email server may have a delay or malfunction.