FAQ – Binary Trade Options

What are Binary Options?

Binary options or “digital options” are options that pay out a fixed return confirmed at the onset of the contract. You receive a fixed percentage of possible profit dependent on the time of your contract in relation to the time the deal closes. You will receive up to a 72% payout when the option expires when you make the correct choice.

What is the payout with Binary Trade Options?

At UFXBank you can get up to 72% return on your initial investment. This is dependent on factors such as the time of the contract. If you make an incorrect prediction on the trade you will receive 15% of your investment back.

If I also trade forex at UFXBank do I need a separate account for Binary Options?

No, your UFXBank account and any deposit that you make will be used whether you trade with our forex platform or Binary Options Trading Platform. Also, any bonus that you receive will be available in your account at whichever platform you are using.

What is an Underlying Asset?

An Underlying Asset is an index, commodity, currency pair, stock or any other financial asset that constitutes the basis for creating an option.

How is payout calculated?

For example, if you close your trade and the return is 72%, from an investment of $1,000, you would win $720 when predicting correctly. If you made an incorrect choice then you will still receive 15% of the $1,000 investment. You won’t leave UFXBank empty handed when trading Binary Options.

What is a “Call Option”?

“Call option” is a term used to describe an option that closes higher than the original price it was purchased.

What is a “Put Option”?

“Put option” is a term used to describe an option that closes lower than the original price it was purchased.

What does “current price” indicate for each asset?

Every price published in a contract deal is live and is reflecting the “current price” of the currency/commodity pair.

What is the “expiry price”?

The “expiry price” is the price of the trade at the time that the trade closes. This price will determine whether you profit or not.

What is an “In-the-money” contract?

This term is often used with Binary Trade Options to describe a successful prediction which yields profit.

What is “Out-of-the-money” expiry?

This term is often used with Binary Trade Options to describe a failed prediction.

What is “At-the-money” expiry?

In Binary Trade Options, an “at-the-money” close on a contract indicates that the purchase price of the contract is equal to the price of the contract at its close. In other words, the option does not close above or below the contract price. If this were to occur when trading binary options at UFXBank it will be counted as a loss and you will receive back a percentage of your initial investment as in any other “out-of-the-money” expiry.

What is the “expiry time”?

The expiry time is the time and date at which an option expires.

In which time zone are the contracts?

GMT is the time zone that all contracts are set.

What Currency/ Commodity pairs are traded at UFXBank Binary Trade Options?