As soon as you buy a Put or Call option, three numbers appear on the right top side of the chart:
Total investment: how much you have invested into a deal
Expected Profit: possible result of the transaction if the chart point at the expiration line ends up at the same place where it is now.
Profit after Sale: If it is red, it shows you how much of the invested amount you will lose your balance after sale. If it is green, it shows you how much profit you will get after sale.
Expected Profit and Profit after Sale are dynamic, as they change depending on several factors including current market situation, how close the expiration time is and the current price of the asset.
Many traders sell when they aren’t sure that the transaction will give them a profit. The selling system gives you the chance to minimize losses on doubtful options.
If you are using Iplay Binary platform for the first time and if you don’t have much experience, you can start with our video tutorials. You can train on your practice balance, and then continue trading with real funds. You can also find information about trading on the pages of Iplay Binary Blog.
Detailed information of each instrument is stated below.
Please note that you can only sell an option when there is more than 15 seconds before expiration for Turbo options.
For Binary options the Sell button is available from 30 minutes until expiration to 2 minutes until expiration.
If you trade Digital Options, Sell button is always available.
Over-the-counter (OTC) is a trading method that is available when the markets are closed. When trading OTC assets, you get quotes that are generated automatically on the broker’s server in a way that maintains equilibrium between buyers and sellers.
Every Friday at 21:00 and every Monday at 00:00 am (GMT time) Iplay Binary is switching from market trading to OTC trading and from OTC trading to market trading.
New CFD types available on the Iplay Binary trading platform include CFDs on stocks, Forex, indices, CFDs on commodities and cryptocurrencies, ETFs.
The trader’s goal is to predict the direction of the future price movement and capitalize on the difference between current and future prices. CFDs react just like a regular market, if the market goes in your favor then your position is closed In The Money. In case market goes against you, your deal is closed Out Of The Money. The difference between Binary or Digital Options and CFD trading is that your profit depends on the difference between entry price and closing price.
In CFD trading there is no expiration time but you are able to use a multiplier and set stop/loss and trigger a market order if the price gets a certain level.
CFD trading offers the usage of a multiplier which can help a trader to control the position that exceeds the amount of money invested in it. The potential profitability (as well as risks) will also be magnified. Investing $100 a trader may get the return that is comparable to a $1000 investment. That’s the opportunity a multiplier can offer. However, remember that the same goes with potential losses as these would be multiplied as well.
If a trader opens a long position, the profit is calculated according to the formula: (Closing price / Opening price – 1) x multiplier x investment. If a trader opens a short position, the profit is calculated according to the formula (1-closing price/opening price) x multiplier x investment
For example, AUD / JPY (Short position): Closing price: 85.142 Opening price: 85.173 Multiplier: 2000 Investment: $2500 The profit is (1-85.142 / 85.173) X 2000 X $2500 = $1.819.82
Digital Options trading is similar to Binary Options trading. The main distinctive feature is the profitability and the risks of each deal that depend on a manually chosen strike price on the right side of the chart.
– Potential profit on Digital Options can be up to 900%. However, an unsuccessful trade will result in loss of the investment.
– The closer strike price is to the current price of the asset – the lower your risks and potential profit are
Note that digital options will expire-in-the-money only if the actual price is not identical to the strike one. For call options it should exceed the strike price by at least one pip, for put options it should fall behind the strike price by at least one pip.
Binary options trading involves deciding whether the price of the underlying asset is going to increase or decrease. If you choose Call option: you get profit if the closing price is higher than opening price. If you choose Put option: you get profit if the closing price is lower than the opening price.
However, if you have incorrectly predicted the price movement (upwards or downwards) of the underlying asset, you will incur a loss of 100% of your invested amount.
Call Option: closing price > opening price
Put Option: closing price < opening price
This type of trading offers only two outcomes: you either get profit or lose your investment only.
It does not matter how significantly price changes. If the closing price will be equal to opening price, your initial investment into a deal will be returned back to your balance.