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What is Binary Trading

Binary options offer traders an alternative way of trading indices, currencies, equities and commodities at a relatively low cost and with limited risk. Binary options are derivatives – meaning that rather than purchasing a futures contract of an asset, traders speculate on, for example,  whether a security’s value will either increase or decrease within a pre-set time period (high/low, whether a product’s  value will breach an upper or lower barrier determined prior to the trade’s initiation (one-touch), or which of two assets has a higher market price at the trade expiration (pairs). 


The relatively straightforward nature of binary options trading appeals to many traders, as one only needs to choose whether or not a specific outcome will occur by a certain time, although in some circumstances traders will have further choices during the trade itself, such as whether to close the trade early or not.

What Makes Binary Trading Unique?

Unlike other forms of trading, when trading binary options, your maximum potential profit and loss are both determined before you enter a trade. This is advantageous in comparison to trading traditional options, where traders cannot forecast how much will be gained or lost, and each incremental price increase or decrease of an asset can have a major impact on a trade’s outcome.

​With ETX Capital, you can trade binary options on forex pairs, financial indices, equities and commodities.

How Long Can a Binary Trade Last For?

Traders can choose from binary trades lasting either short-term or long-term to suit their trading strategies and goals. ETX Capital offers its clients a variety of different option times to select from; traders looking for fast gains may enter trades lasting anywhere from 60 seconds to an hour, whereas those who prefer longer-term trades may decide to initiate trades with a 24 hour expiration period.

Binary Options Trading Example




Below we give an example of a typical high/low binary trade:

Will the price of silver be higher at 14:00 tomorrow than it is now?

The trader can decide how much money they want to stake on the trade; the ETX Binary platform allows for trades anywhere in size from $15-$2,000.

Trades that expire in a winning position can bring payouts ranging from 65%–100%, depending on the type of trade, the length of trade and the general market volatility at the time of the trade’s initiation. However, please note that trades closing in a losing position will result in a 100% loss of initial investment.

At various points during the course of the trade, the trader will be given the option of closing the trade early. If the trade was in a winning position, the trader could be offered a reduced percentage profit for closing now, rather than waiting until the trade’s natural expiration. On the one hand, the profit received would be less than that which would be gained if the trade expired naturally in a winning position. However, closing the trade at this point would guarantee a level of profit, whereas there’s no certainty that the trade will expire in that winning position – if it does not, there’ll be no profit at all.

Similarly, if the trade is currently in a losing position, then the trader might be offered a percentage of their original trade amount back for closing the trade now. The trader would have to decide whether to cut their losses at this point and come out with at least some of their money back, or risk having the trade close in a losing position and coming out of it with no money at all.

Trading Binary Options Internationally




An increasingly popular choice over the last few years, Binary options are one of the fastest-growing methods of trading globally.


Unlike spread betting and CFDs, binary options trading is permitted to US citizens, but companies need to be SEC registered in order to offer binary trading to US citizens. This has meant that many binary trading providers, including ETX Capital, are not able to offer their services to US clients. However, excluding US citizens, clients from a majority of countries can open an ETX Binary account.


If you are unsure of your eligibility to open a binary trading account with ETX Capital, please do contact us by phone on +44 (0) 20 7392 1486 or by e-mail at newaccounts@etxcapital.co.uk for more information.

Trading Binary Options with ETX Capital




The ETX Binary platform is custom built for binary trading, enabling traders to initiate both longer term and short term trades. ETX Capital offers a large selection of binary option products, including Commodities, FX Pairs, Indices and Equities - making it easy for you to start trading on the sector(s) of your choice.

Binary Options are not regulated by the Financial Conduct Authority

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