Binary optionsebook

Banc De BinaryThe Ultimate Guide to Binary Trading

Table of contentsForeword ............................................................................................................. 6

Letter from the CEO .......................................................................................... 8

Binary options 2011 ........................................................................................ 10

Introduction to Banc De Binary We’re the global leader in binary options trading .................................. 12 We don’t think of it as a history, we think of it as a legacy .................... 13 A breadth of truly global assets ............................................................... 14 Client service that’s second to none ........................................................ 15 Banc De Binary is on your side ................................................................ 15

Introduction to binary options ..................................................................... 16

Binary options basics The asset ................................................................................................... 18 The contract .............................................................................................. 18 The prediction .......................................................................................... 19 Amount staked ......................................................................................... 19

Who trades binary options? Professional organizations ...................................................................... 21 Individual traders ..................................................................................... 21

Benefits of trading binary options All conditions trading ............................................................................... 22 High return ............................................................................................... 23 Calculated risk .......................................................................................... 23 Tax exempt ............................................................................................... 23 Wide availability ....................................................................................... 24 Any time, anywhere trading .................................................................... 24 Simplicity .................................................................................................. 25 Small investment friendly ........................................................................ 25

How to trade binary options ......................................................................... 26 Making a trade ......................................................................................... 27 Type of binary options ............................................................................. 28 Digital binary options .............................................................................. 28 One touch options ................................................................................... 29

Analyzing binary options Introduction to technical analysis ........................................................... 30 Trend following ........................................................................................ 31 Momentum ............................................................................................... 31 Mean reversion ........................................................................................ 32 Pattern recognition .................................................................................. 33 Support and Resistance ........................................................................... 33

Introduction to fundamental analysis Fundamental analysis considerations ..................................................... 34 Company Information .............................................................................. 35 Industry News ........................................................................................... 36 Natural Events .......................................................................................... 36 Fear Factor ................................................................................................ 37 Market Conditions .................................................................................... 37 Economic Performance ............................................................................ 38 Economic Indicators ................................................................................. 39

Binary options trading strategies Reversal ..................................................................................................... 40 Trend Reversal .......................................................................................... 41 Straddle ..................................................................................................... 42 Knock-on effect ......................................................................................... 43

Risk management Analyze and research ............................................................................... 44 Learn from your mistakes ........................................................................ 45 Follow trends ............................................................................................ 45 Risk and reward ........................................................................................ 46 Familiarity ................................................................................................. 46 Limiting your trades ................................................................................. 47

Choosing a binary options broker Trading platform ....................................................................................... 48 Ease of use ................................................................................................ 49 Keeping it safe .......................................................................................... 49 Service and support ................................................................................. 50

Frequently asked questions ......................................................................... 52

Taking a trading bonus — pros and cons ....................................................56

Banc De Binary – types of trading bonus Deposit matches ...................................................................................... 58 Sign-up bonus .......................................................................................... 58 Banc De Binary – rebate bonus ............................................................... 59 Refer a friend ........................................................................................... 59

Personal broker program Program features ..................................................................................... 60

VIP Platinum program and platform ........................................................... 62

Affiliate program ............................................................................................ 64 CPA payment plan (monthly) .................................................................. 65 Revenue share plan ................................................................................. 65 Superinternalaffiliatetieredrevenueshareplan.................................65

Banc De Binary platform rates ..................................................................... 66

Platform security ............................................................................................ 68

Deposits and withdrawals with Banc De Binary ........................................ 70

Types of accounts ........................................................................................... 72

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Dear Valued Trader,Welcome to the exciting world of binary options trading, one of the fastest growingsectorsofthefinanceindustry.

Foreword

In this e-book, we’ll provide you with the basic information you need to start trading. The basics can be learned within a few minutes. However, there are numerous advanced strategies that traders and investors can utilize in order to increase the probability of high returns on their investments. In addition, we’ll cover the different types of binary options trading available on the market, and introduceyoutothebenefitsoftrading with Banc De Binary.Established in 2009, following the majorfinancialcrisisofthelastdecade, Banc De Binary has grown exponentially to become a world leading binary options broker. We offer an exceptional trading platform where investors can trade binary options in a low-risk, informed, and safe environment.

Our trading platform is designed to be easy to use, while still powerful enough to offer unique money management features, such as fast and convenient access to the Forex, stock, and commodities markets, advanced research tools, and account maintenance, all in one consolidated web-based environment. No software to install, just login and take action.

We are proud to describe our brokers as the best in the industry. Our stringent recruitment process ensures they are of the highest calibre. We provide them with the best technologies and analytical tools available to ensure their split second decisions are as accurate as possible. In addition, your money is in your hands. You choose the options and are always in control. Our expert team of brokers is simply here to advise and assist whenever you need them.

Foreword

Your money is in your hands. You choose the options and are always in control.

For more information, please contact us at [email protected]

or call us directly at 1-(800)-656-6163

Wishing you every trading success.

Sincerely,The Banc De Binary Team

Banc de Binary7

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Letter from the CEOI’d like to take this opportunity to share my enthusiasm and excitement for the innovative, state-of-the-art investment, trading and banking enterprise that is Banc De Binary.

Over the past few years, it has become apparent that the old ways of doing business in this increasingly interconnectedfinancialworldareno longer viable. For the hundreds of banks, brokerages, investment housesandotherfinancialconcerns that foolishly cling to the obsolete models of conducting their business, the result has been chaos, devaluation of assets and equity, and in many cases, oblivion. Unfortunately, this trend persists to this day as we continue to see bank failures, defaults and depreciating value of many of the biggest names in banking over the past 50 years.

For those that refuse to see or do not comprehend the changes in global economics, business, investment and trading, the future holds little promise. For the rest of

us who maintain a constant focus on advancements in technology, communications and new product development, the future is bright, inspiring and awesome in its potential.

AtBancDeBinary,wearefirmlycommitted to developing and delivering cutting edge products, services and security in a world that demands constant innovation and attention to the needs of the modern investor and trader.

As such, you will notice that the performance, products, trading platforms, customer service and educational tools at Banc De Binary are evolving on an almost daily basis, with continuous upgrades and enhancements to our online global operations. With that in mind, please know that each and every Banc De Binary customer is our most important customer and that we are here to serve you 24/7, with regard to any and all of your banking and trading needs.

Oren Laurent

Dear Valued Customer,Welcome to our global online banking community.

9Banc de Binary

Letter from the CEO

“The future is bright, inspiring and awesome in its potential..”

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In the past couple of years, binary options have carved out a niche that focuses on straightforwardness, known risks, and a de-emphasis on volatility. Many of the other asset classes in today’s markets are quite different. They involve a large amount of painfully complex factors, which increase the margins of error and the likelihood of costly mistakes.

Today’s markets are quite different fromfinancialmarketsofthepast.The digital age has revolutionized them, allowing for an explosion in asset types, contracts, and strategies. While this can be seen as a positive in that it provides opportunities for wealth creation, more frequently, it has set the average trader at a disadvantage. Large institutions with

many resources at their disposal (namely, specialized personnel and computing power) have an advantage over the competition. They quickly capitalize upon traditional asset trading opportunities far before the best retail investors are even aware of them.

In combination with rising volatility and a staggering increase in the number of investment vehicles available in recent years, it is easy to see why many retail investors findthemselvesoverwhelmedbytoday’s market. In fact, many view the idea of speculative trading as far too risky and riddled with hidden complexities. In a sense, they’ve been unduly pushed out of the market.

Binary options enable investors to competein the toughest market conditions.

Binary options

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Binary options enable investors to competein the toughest market conditions.

These circumstances are precisely why binary options are such an exciting development. Brokers choose well-researched and understood underlying assets, giving retail investors information access that rivals the professionals. Perhaps most importantly, risk calculation on binary options is understandable. With more traditional assets, every single price movement affects potential gains and losses. When additional complications such as leverage are factored in, it’s easy for a prospective trader to lose track of their exposure in a given investment.

However, with binary options, the set price and “all or nothing” nature of outcome brings risk out of vague territoryandintothefigurativelight.

With exact risk known, binary options traders are able to make wiser decisions about money and account management. Not coincidentally, these are the areas where traditional asset traders often stumble and lose. By eliminating these added entanglements, binary options give traders the ability to focus solely on making correct predictions and consequently, making money.

Banc de Binary

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In 2008, the SEC approved the listing of binary options. This ruling led Banc De Binary to successfully predict a period of growth in binary options trading. Our vision was to be the pioneers of a new kind of bank, one focused on providing high quality binary options trading services and solutions to both the experienced trading professional and those new to this market.

The Banc De Binary Pro Platform utilizes the latest technology to offer

bankingandfinancetoawiderangeof customers, including corporations, hedge funds, individual investors, banks and governments, in a simple yet secure online environment.

Banc De Binary provides its clients with a unique value package: state-of-the-art technology; extensive knowledge and unparalleled service levels from our highly skilled team; alongside a modern and accessible rangeoffinancialservicesandproducts.

We’re the global leader in binary options trading

Introduction to Banc De Binary


Our goal is to bring fair and equitable pricing and order-handling practices to all our clients.

We don’t think of it as a history, we think of it as a legacy

With a legacy of over 100 combined years in the foreign exchange markets, Banc De Binary is a leading globalfinancialservicescompany.We service more than 20,000 customer accounts and operate in over 80 countries, providing

consumers, corporations and institutions alike with a broad range offinancialproductsandservices,including private banking, corporate and investment banking, securities brokerage and wealth management.


Banc de Binary

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A breadth of truly global assetsBanc De Binary’s trading platform offers more than 90 assets, which constitutes the widest set of tradable assets currently available from any provider. With trading activity in over 80 countries, we can offer emerging market and other less liquid currencies. This widens the range of tradable currencies, commodities, stocks and indices that you can choose from. Further, with a VIP account we can add any asset within two business days.

Majorbenefitsoftradinginthebinary options market include the diversificationandopportunitiescreated by reduced correlation with other asset classes. Trading in emerging market currencies, commodities, stocks, and indices

offers further opportunities as their performance is linked to other underlying factors unique to those countries. For example, if strength is perceived in certain commodity prices, it would be helpful to have a wide set of currencies on offer, from Australian and Canadian dollars to the South African rand, Mexican peso, and several other currency pairs.

Banc De Binary’s Pro Platform offers liquidityinseveralAsia-Pacific,Middle Eastern, Eastern European and Latin American currencies. For more information on the full breadth of currencies on offer, access the live chat option on Banc De Binary’s website (www.bbinary.com) and speak to a broker.


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Banc De Binary offers 24/7 service via dedicated specialists who are trained to look after our clients’ trading and administrative needs.

Ourinvestorshaverepeatedlyidentifiedclientserviceasatrulydifferentiating key feature from our competition. We believe high-quality, personalized service is central to our offering and we always welcome suggestions to further improve our levels of service.

Client service that’s second to none

Banc De Binary is on your sideBanc De Binary has deployed best practices developed over decades of asset trading into its Pro Platform.

Banc de Binary

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Based on exotic options, which are only traded on private markets, binary options are traded over the counter and are available 24 hours a day, 7 days a week.

A binary option, also known as a digital option or an all-or-nothing, isatradinginstrumentwithafixedreturn that is determined at the outset of the trade. A trader will receive a predetermined payout if the binary option expires in-the-money. He will lose a predetermined amount of his original stake if the option expires out-of-the-money.

The beauty of trading binary options is the inherent simplicity. If a prediction is correct, the trader receives a refund of the stake plus a return on investment that is typically 71-88%. If the trader is wrong, Banc De Binary will return a small percentage of the original stake.

All markets - currencies, stocks, commodities, and market indices - can be underlying assets for binary options. The degree to which the option closes in or out-of-the-money does not matter as it does with a traditional option.

Binary options are high return, short-term investments

Introduction to Binary Options


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The beauty of trading binary options is the inherent simplicity.

Unlike traditional options, binary options do not have set prices: the trader decides upon the amount of money he wants to risk and invests that amount when he buys the option. Furthermore, the shorter duration of these contracts makes binary options more suitable for short-term trading than their traditional counterparts.

In the past few years, online binary option trading has grown exponentially. Digital trades can

utilize many more underlying assets, andhavemuchmoreflexibilityin their timing, strike prices, and contract options. Since 2009, they have become very popular among traders as a way to control risk in options trading, in turn allowing for more dynamic strategies to be developed.

Finally, constantly evolving technology better facilitates digital trading and allows investors to make more lucrative trades.


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Binary Options Basics

1Each binary options trade is based on an asset selected by the trader. These are known as underlying assets, since the trader doesn’t buy the assets and therefore never actually owns them.

All binary options brokers offer their own range of assets to traders, such as stocks, commodities, currency pairs and market indices. Some brokers may offer only a limited range, which will restrict trading opportunities. Although a trader may opt to specialize in an asset or a group of assets with which he is familiar, the ability to trade a wide range of assets offers increased opportunitiestoprofit.

Oneofthekeybenefitsofbinaryoptionsissimplicity.Binary options trading is relatively easy once the parameters of the trade are understood.

Each binary option is based on four distinct components:

The asset

Binary Options Basics

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2Each binary option trade is a contract and each contract has a set expiration time. Although many types of traditional trading require an investment for several months or years before a reasonable return is achieved, in the case of

binary options, trades can expire in a matter of weeks, days, hours or minutes. Using Banc De Binary’s trading platform, an option can bepurchaseduptofiveminutesbeforeitexpires.Itisimportant that the trader always knows just how much time is left before the option expires so that he can improve his chances of making an accurate prediction.

The contract/time of expiration

3The job of a binary options trader is to determine in which direction the price of an asset will move before or at the time of expiration. For the simplest binary options trades, the forecast will be based on whether

the price at expiry will be higher or lower. The trader will purchase a Call option if he believes the price will close higher or a Put option if he believes the price will fall. A correct prediction will result in a return of 71-88% on investment – nearly double the original stake.

The forecast or prediction

4Eachbinaryoptionstradeisforafixedamountthatthetraderspecifiesattheoutsetofthetrade.Thisputsthetrader’smoneyfirmlyinhis hands at all times giving him the control to minimize losses and maximize returns.

The amount that is at stake

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Who Trades Binary Options?

For many years, binary options were treated as simple over-the-counter instruments. As a result, an actual liquid market didn’t exist, and there was no regulation whatsoever in place. Binary options were only one small part of a larger complex contract. Specialist brokers were engaged to trade on the clients’ behalf. Naturally, these brokers charged a commission fee for the service.

This all changed in early 2008, when the SEC approved a rule change allowing binary options to be traded on major markets. In May 2008, the American Stock Exchange became

thefirstexchangetopublicallyoffer binary options, and the CBOE followed suit in June of the same year. Both of these market-traded binary options are highly limited when compared to the types of binary options available to online traders.

The greater availability of binary options and the increasing number of organizations that support them have led to an exponential growth in the number of people trading these options. This number continues to grow on a daily basis.

There are two trader types:

Trader types


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Some of the organizations that operate as binary options traders include options traders who have diversifiedtheirportfolio.Theyareattractedtothe potential for high volume trades giving the opportunitytoachievesignificantreturnsinarelativelyshorttimeframe.Additionalbenefitsinclude the availability of extensive assets to trade and risks that are controlled, eliminating much of the uncertainty associated with traditional options trading.

Professional organizations

Individual tradersAt the other end of the scale, individual investors trade binary options due to the provision of comprehensive trading platforms and the availability of high levels of support, information, and accessible advice. Day traders in particular are attractedtotheflexibilityofbinaryoptionstrading. Internet-based trading platforms create a true 24/7 trading environment and traders can access their accounts securely any time anywhere, using any suitable device with Internet access.

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Benefits of Trading Binary OptionsBinary options offer an extensive rangeofbenefitstoalltraders,whether they are new to the market or experienced professionals.

The simplicity of binary options trading is perhaps the most appealing factor compared with their traditional counterparts. Every

situation is solely either gain or loss. Therefore,tofinishin-the-money,alla trader really needs to predict is in which direction the asset will move before the time of expiration.

Additionalbenefitsassociatedwithtrading binary options include:

All conditions tradingIn traditional options trading, investors usually only make money when markets and prices are rising. However, a binary options trader can make money in any market conditions, because predicting a fall isasprofitableaspredictingarise.Infact, volatile markets offer increased opportunitiestoprofitduetothelarge swings that can occur in each direction. The key is to be alert to changes in market conditions, follow thesignsandthenprofitthroughcorrect forecasting.

Trading foreign exchange enables atradertofinishinthemoneybyforecasting a fall or rise in the value of one currency against another. With the constant changes to rates and the number of available combinations, this gives almost limitless opportunities to achieve a return.

All markets follow trends and a tradercanprofitonanuptrendbybuying Call options as well as buying Put options when a downward trend is underway. To reiterate, it’s simply a matter of forecasting in which direction a market will move.

BenefitsofTradingBinaryOptions

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Benefits of Trading Binary Options

High returnTraditional investments usually necessitate a long-term outlook, with assets often held for months or even yearsbeforeasignificantreturnonan investment is achieved. Binary options, on the other hand, are short-term, high-return trades.

A typical option will expire in a matter of hours or even less and will often yield 71-88% if predicted correctly. With a series of successful trades, a trader can quickly accumulatesubstantialprofits.

Calculated riskAlthough an incorrect prediction can result in the loss of a proportion of the original stake, the trader can determine at the outset what this will be. Therefore overall exposure can be relatively small, allowing

trading to continue until a return to profitisachieved.Thiscontrastswithother forms of trading where large amounts of money are at risk and it is easy to lose control over how much is at stake.

Tax exemptBinary options brokers do not withhold taxes from payouts. Furthermore, the UK tax authorities treat any gains from binary options astaxexempt.Thisisaclearbenefitto all UK-based traders when compared with other investment

vehicles. Some countries, such astheUSA,treattheprofitsfrombinary options trading as short-term capital gains. However, traders may offset gains with any losses for tax purposes.

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Wide availabilityBinary options are now an accepted means of trading and are widely quoted on markets, with a number of brokers providing extensive yet easy-to-use trading platforms that any subscriber can access. Banc De Binary’s Pro Platform is able to offer more than 90 assets with trading activity in over 80

countries. This constitutes the widest set of tradable assets currently available from any provider. Trading in emerging markets and less liquid currencies offers further opportunitiestoprofitastheirperformance is linked to other underlying factors unique to those countries.

Any time, anywhere trading

Trading platforms generally provide access to a variety of global markets covering stocks, commodities, and foreign exchange. This allows 24/7 trading with at least one market generally open at most times. Additionally, since most trading

platforms are web-based, traders can access their accounts and make trades using any device with Internet access. This combination gives traders the ability to trade however they want, whenever they want and from wherever they are.

BenefitsofTradingBinaryOptions

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SimplicityWhereas some types of investment and trading can be complicated, binary options trading provides a straightforward process that involves a number of simple steps. Traders simply choose the asset they want to trade, predict the direction of the price movement by the stated time and indicate the amount of the stake.

If the outcome is correct, the trader will receive a payout in the region of 71-88%. Further, binary options do not require more than one pip in order to be in-the-money. Forex trading and other forms of online trading require three pips just to commence trading.

Small investment friendly

Unlike traditional investments, whichrequireasignificantamountof capital upfront, binary options traders can invest as little or as much astheywish.Nosignificantdepositsare required in order to start trading.

Furthermore,carefuldiversificationcan help build a buffer against potential losses. As stated earlier, your money is in your hands at all times.

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How to Trade Binary OptionsIn order to trade binary options, a broker is required. Not the specialist broker of old who would trade on an individual’s behalf and charge commission fees, but a modern binary options broker, providing a trading platform. This gives the investor complete freedom to trade at his convenience.Havingidentifiedasuitableplatform,the trader must open an account.

Several account types may be available with different minimum deposit requirements. The features andbenefitsofeachaccountshouldbe examined carefully in order tochoosetherightfit.Itisoftenpossible to start small and then upgrade to another account at a later stage. Once the trader has registered his details online and completed his deposit, he’s ready to begin trading binary options.

How to Trade Binary Options

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Making a tradeMaking a successful trade involves a number of simple steps:

Choose the asset

Predict the Price Movement

Wait for the option to expire

Most trading platforms will have a range of available assets. A trader will generally select an asset type with which he is familiar, whether it is a stock, market index, commodity

or currency pair. For each asset, the current price will be displayed, along with the expiration time of the option and the percentage payout for a correct prediction.

The trader will select a Call option if he thinks the price will rise by the time the option expires or a Put option if he expects the price to fall. Alternatively, he may trade variations, known as touch options,

which are explained later in this chapter. All he needs to do is enter the amount to be traded and confirmthetrade.

If the prediction is correct at the time of expiry, the trader will receive a return that’s equal to his initial stake plus the stated payout. If he’s wrong, he’ll receive a small percentage of his original stake.

It is important to remember that unlike Banc De Binary, some platforms are really all-or-nothing. In those cases, the whole of the original stake will be lost.

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Type of Binary Options

Digital binary optionsThese are the simplest and most common trades and are sometimes known as all-or-nothing options. As described above, the trader is simply predicting whether the price will rise or fall by the stated expiration time.

An example follows:Google’s shares have a current price of $535.50. The trader decides to buy an option that expires in two hours and pays a 75% return on success. He stakes $100 on his prediction and, at the end of the two-hour period, the price stands lower at $534.10.If he had purchased a Call option, he would lose and receive a percentage

of his stake in return; if he had purchased a Put option he would profitandreceiveareturnof$175(his original stake of $100 plus a 75% payout).

As explained previously, the incremental price movement itself does not matter as it does in traditional options trading. The trader must correctly predict whether the price will be higher or lower at the expiry of the contract – the price may move in either direction by as little as one pip.

How to Trade Binary Options

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One touch optionsA one touch option is a binary option that pays off if the underlying asset reachesaspecificlevelbyaspecifictime. In this case, the trader is not just choosing whether a price will rise or fall by a stated time, he is deciding whether it will touch a set barrier at any time during the period of the trade. Due to the additional specificityinvolved,thistypeoftrading can attract returns as high as 500%.

For example:The current commodity price is $80.50 and the trader sets a limit of $81.00. If he purchases a one touch option, he will be in-the-money if the price touches that level before the option expires. When it does hit the limit, the option closes and the trader receives his payout; it doesn’t matter what happens to the price after that. If the price does not reach the stated level before the expiration of the contract, the trader will lose and forfeit his stake.

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Analyzing Binary OptionsToimprovethechancesofaccumulatingconsistentprofitsfrombinaryoptionstrading, there are two types of analysis that traders can employ: technical analysis and fundamental analysis. Fundamental analysis looks at how outside influencescanaffectassetprices;technicalanalysisfocusesonhowapricehasmoved in the past and how that can determine future movements. Both types of analysis are essential tools for traders.

Introduction to technical analysisTechnical analysis is the study of asset prices in the attempt to determine the future direction of a market. Traders who use technical analysis tend to believe that the majority of available information is already incorporated in the value of an asset. Consequently, prices will always move in a consistent manner and identifying the ways assets have moved in the past will give a guide to the way they will move in the future.

Much time and effort for technical analysis is taken up with studying charts. Practitioners believe that the factorsthatinfluenceprices,suchasthe effects of supply and demand,

established trends, and other elements are clearly visible in any chart. Most price charts plot price movements over time or by volume of trades. Charts are often formatted via a trend line so that price direction can be easily read. Bar charts or candlestick charts are also used to display the high, low, open and close prices for each period.

Technical analysis can be particularly helpful in assisting an investor with entering, exiting, and managing the risk of positions. A number of analytical tools are available as described below.

Analyzing Binary Options

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Trend followingTrend following analyzes historical data in order to establish whether a sustained movement in a particular direction is occurring. This normally involves looking at different periods, such as 2-day and 7-day moving

averages. If the moving average for the shorter period crosses significantlyaboveorbelowthatforthe longer period, then an upward or downward trend has developed.

MomentumTracking momentum is sometimes known as Moving Average Convergence Divergence (MACD) and determines whether an asset’s momentum is rising or falling. It is used to track the daily changes in short-term and long-term averages.

If the short-term averages are larger, momentum is increasing, while larger long-term averages suggest a decreasing momentum. Slowing momentum indicates the rate of change will decrease and may eventually reverse.

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Mean reversionMean reversion involves identifying an asset’s mean and then determining if the asset price is settling back to that point. It is rather like testing a rubber band to see how far it will stretch before it snaps back.

Analysts employ technical indicators such as Bollinger Bands to measure mean reversion. Bollinger Bands employ various statistical factors, such as supply management, in order to generate a set of bands to contain the price action. Bollinger bands allow any trader to instantly view price on a chart relative to its volatility mean over a period of time.Volatility is the rate at which the price of a currency pair moves up and down in the market. When high volatility can be seen, the upper and lower Bollinger bands widen and whenthepricefluctuationsdecrease,the bands contract. The price usually bounces off the range whenever it touches the upper or lower band.

A second group of technical indicators that are used to measure mean reversion are Relative Strength and Stochastic indicators. Both of these technical indicators measure how fast a market has moved in the short term, relative to movements over a longer period. Stochastic indicators, in particular, are based on the principal that in an up trending market, stocks tend to close near their highs and in a downward market stocks tend to close near their lows. These indicators create an index that is used by traders to determine if a market is overbought or oversold.

In general, technical indicators are successful because of their popularity among traders, which is based on the reasoning that “volume generates movement”. The logic follows that the more investors who are trading in a certain direction, the more that direction is set to continue.


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Pattern recognitionIn this type of analysis, the trader is lookingatspecificpatternswithinthe price action. This will help him determine whether any recognizable patterns reveal a predisposition forhimtoforecastaspecificprice

move. An example of this type of pattern is a head and shoulders pattern in which two shoulders and a head can clearly be seen. In general, the market will fall after forming the second shoulder.

Support and ResistanceSupport and resistance are among the most widely known and widely used Forex trading concepts and strategies. These are the levels in the markets, which price has not been able to break outside of. Support levels are the areas which price cannot seem to break below. If a break does happen, it is only temporary and the price soon returns above the level. Resistance levels are the areas, which prevent

the price from rising further. These levels act like a ceiling and appear to force price back down when it tries to break above the level. It is essential to bear in mind that support and resistance levels are not exact numbers, but offer traders a clear indication based on past performance that when price reaches either a support or resistance level it is likely to bounce back.

By utilizing these indicators, a trader is essentially trading in the same direction as many others. This insight can be useful when trading short term.To improve the chances of accumulating consistent profitsfrombinaryoptionstrading,there are two types of analysis that traders can employ: technical analysis and fundamental analysis.

Fundamental analysis looks at how outsideinfluencescanaffectassetprices; technical analysis focuses on how a price has moved in the past and how that can determine future movements. Both types of analysis are essential tools for traders.

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Introduction to Fundamental AnalysisFundamental analysis is based on the principle that assets are generally priced incorrectly and that markets are constantly attempting to correct them. These corrections are based on outside events affecting asset price and therefore traders will need to continually check news items, company announcements and various publications.

This type of analysis can be subjective, because the investor is forming a view based on the occurrence of certain outside events.

A trader would need to study all levels of data, depending on the asset he is trading, from company level through to industry and markets, on to country wide and global level. Many events are inter-related and can affect the price of different assets and even different asset classes.

Each type of analysis will help a trader become more successful in his forecasts. However, it is important to note that a combination of technical and fundamental analysis offers the greatest chance of success.

Fundamental analysis considerationsFundamental analysis assumes that the market is rational and that a security’spricewilleventuallyreflectthe true value of the investment. By contrast, technical analysis assumes that the marketplace will repeat past trends and that a security’s price will eventually move in the same way other investment prices have moved.

As such, both theories potentially turn a blind eye to important external data. A stock that announces big unanticipated news is unlikely to continue to complete a price pattern, or to move directly towards its underlying real value. Some of these factors and variables include:


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Introduction to Fundamental AnalysisCompany informationWhen using a company’s share price as the basis for a binary options trade, full information about the company is absolutely essential. Read news items and press releases and take account of analysts’ views.

Use a company’s published accounts inordertocalculatecertainfiguresand ratios to assess the company’s worth and performance, including:

• Earnings per share (EPS) that provides a measure of the value of each share

• Price to earnings (P/E) to determine if a share is under- or over-valued

• Projected earnings growth (PEG) to compare the share price to annual growth

• Book value as total assets less total liabilities

• Price to book (P/B) compares the share price to the company’s asset value

• Price to sales (P/S) to show the share price in relation to annual sales

• Dividend yield as a percentage of the company’s share price

• Return on equity (ROE) to determine the effectiveness of using the money invested.

Be aware that any news or information about a company may have far-reaching effects. For example, the announcement of a new product may increase the company’s share price while at the same time forcing down the value of its rivals.

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Industry news

No one company exists in isolation. The performance of an industry will affect the value of all those companies that comprise it. A successful company’s share price may be dragged down by an industry that is in general decline. Conversely, a struggling company may experience an uplift if the wider industry begins to improve. Although a company may perform better or worse than its industry, it will always be associated with it and this will be

reflectedinthecompanyshareprice.It is advisable to watch for industries that are on the upswing and to trade companies that are part of them accordingly. For example, one would generally expect the price of shares in renewable energy companies to be increasing as the market develops and products become more widely available.

Natural eventsThe price of commodities will, of course,beinfluencedbynaturaldisasters and weather events. As such, all assets are affected by supply and demand. For example, a drought or severe storm that ruins crops on a wide scale will force the price to rise. Similarly, a hurricane that shuts downanoilfieldcancausethepriceto rise due to supply problems.Some of the effects of natural events are fairly easy to predict, but they can have far-reaching consequences. If the price of a commodity rises due to a shortage of supply, the share

price of the company that supplies the commodity may increase. Conversely, a company that uses a lot of the commodity will suffer afallinprofitsanditssharepricemay drop. A country that is a major producerwillbenefitthroughexportsand its currency may rise.

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Fear factor

Markets are often driven by sentiment, with prices quickly rising and falling. Often, there’s no real logical reason for the changes and they can be driven by fear. It’s difficulttopredicthowmarketswill move in these situations, but

often they establish an upward or downward trend that continues for some time. A successful binary options trader will follow the news in order to identify events that are likely to panic or calm the markets.

Market conditionsBull markets are established when prices are rising, and the reverse, bear markets, when prices are falling. These markets can become established for long periods, often years, and help you determine the general direction of price movements. This is useful when trading an index but also provides guidance for individual company shares. Whether a company is successful or unsuccessful, it will

be affected by prevailing market conditions.

Markets can also become range bound, with prices moving within a narrow band even when the longer-term trend indicated a particular direction. They may also become volatile, with prices varying wildly. Studyingeventsthatinfluencethemarket will give a guide to overall movements.

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Economic performanceIn the short-term, it is acceptable for a country to run a large budget deficit.However,ifthedeficitcontinues for a number of years, it can become a problem. Countries often devalue their currencies to make exporting easier and to limit imports, thereby reducing or eradicatingthedeficit.Whenthecurrencyfloatsfreely,thevalueoftengoes down against other currencies that have stronger economies. The Eurozoneitselfposesadifficultchallenge, because there are many countries with different performance levels but only one currency.Countries themselves often use interest rates as an economic weapon. A rising interest rate makes a currency more attractive and generally causes its value to increase in relation to other currencies. However, different countries can change their rates in the same or opposite directions at the same time, so it’s the difference between the rates that sets the currency pair values. Prices often move in the expectation of an interest rate change.

Budgetdeficitsandfallingcurrenciesobviously affect the prices that countries pay for the commodities they import. This can have an impact on other parts of the economy, with share prices particularly affected for those companies that import or export extensively.

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Economic indicators

• leading economic indicators are important in predicting price movements, because they change before the economy as a whole does. Stock market returns are one such indicator, because the markets, for example, generally rise before a recession ends

• lagged economic indicators follow on after the economy changes direction, such as the unemployment rate, which usually improves two or three quarters after the economy re-enters growth

• coincident economic indicators, such as GDP, tend to move in line with the overall economy

Various economic indicators are published that either analyze economic performance or predict future performance. These indicators have different timings in relation to the way the economy changes:

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Binary Options Trading Strategies

Asset prices often follow a trend for a set period moving only in one direction. When the trends of price and volume move in the same direction, it is an indication of a healthy underlying market direction. However, when price trend is rising but the trend in volume is falling, it warns of a potential price trend reversal.

When a reversal is indicated, a trader might buy an option that is in the opposite direction to previous movements. He might, for example, purchase a Call option if the price has been falling and is now expected to rise, or a Put option if the price is due to fall after an increase.

Reversal


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Trend ReversalA trend reversal may be indicated by a diamond pattern on a price chart and, although it may be not as common as other reversal patterns, it can be a useful indicator. This type of pattern comes in two forms — the diamond top and the diamond bottom — with both types having the shape of a diamond lying on its side.

A diamond top forms at an up trend’s peak, occurring when the rise endsandthepriceremainsflatfora while. This can result in a series of waves that become taller and then revert to a lower level. At this point, you should expect the price to break out to the downside. This is a signal to change the direction of your trades. A diamond bottom is the reverse effect, with the same reverse pattern but at the bottom of a downward trend. As the waves begin to flattenout,achangeofdirectionis indicated and a breakout to the upside is due. Any binary options

traderwhohasbeenfinishinginthe money with Put options should therefore change to Call options in order to take advantage of the trend reversal.

This strategy is based on the concept that if an asset suddenly moves in one direction, it is unlikely to remain at that peak but will move back towards its original position, if not all the way. So, an investor should buy an option, Call or Put depending on whether the price has risen or fallen suddenly, on the assumption that it will soon return and stabilize. Of course, no one knows when an asset has reached its peak. So close monitoring of the asset and researching why it peaked is vital to deduce the likelihood and timing of its return.

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StraddleThe Straddle is a more complicated strategy, because it involves buying both a Call and Put option on the same asset. The investor straddles the asset at a low point as well as a high point, and therefore the area in between the two options can be twice as successful. This is a particularly useful strategy to protect oneself in volatile markets.

If the price at expiry is somewhere between the two levels, the trader finishesin-the-moneyonbothandmaximizesprofit.Inaworsecasescenario, at least one prediction will be correct and the trader minimizes losses.

Although the setup itself can be difficult,thestraddleisoneofthebest strategies in binary options trading. The trader is looking to place a Put as high as possible on

the asset and then when the market drops, place a Call in the opposite direction as it returns back up. This means the trader always has at least one trade expiring in the money and he will either take a minimal loss or gain a huge reward for landing both trades for a large sum. The Call and Put options do not have to be bought at the same time. Rather an initial option can be bought with a longer expiry and the second purchased once the asset’s direction is more established.Note that the straddle in binary option trading is different from vanilla options since the purchase price and exercise rights differ between the two.


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Knock-on effectThis is perhaps the most logical of all strategies, and is based on the concept that a move on one option will have a knock-on effect on another. For example, the price of a stock may affect the price of the index in which it is traded or if a country heavily relies on a particular asset, then a change in that commodity’s price may affect the country’s exchange rate. For example, a company might announce a major new product launch or a development breakthrough that causes its share price to rise but also drives down the value of the company’s competitors.

In this case, a trader would buy a Call option on the company and Put options on all of its main rivals. The key is to understand the interrelationships between assets and to correctly anticipate price movements.

The trader receives his payout; it does not matter what happens to the price after that. If the price does not reach the stated level before the expiration of the contract, the trader will lose and forfeit his stake.

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Risk Management

One of the most important considerations for any trader is how to manage risk. Although binary options offer low risk compared to other types of trading, the possibility of loss is always given. While there is no strategy that can fully avoid risk, there are numerous methods an investor can utilize to minimizehisfinancialexposurewhenheentersthemarket.

Analyze and researchFollowing a hunch will generally end in failure and a trader should never simply guess when he makes a trade. The primary way to minimize risk is to undertake thorough asset analysis. Technical analysis will establish price patterns that indicate future movements; fundamental analysis will identify events that will cause price changes.

Making successful trades is often about getting in quickly; watching the news and announcements will ensure a trader stays ahead of the market and understands how events are likely to affect prices. The information a trader utilizes should always be current. A trader must act quickly to predict price movements before it’s too late.

Risk Management

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Learn from your mistakesIt is important to remember that trading mistakes occur from time-to-time and it is beneficialtoaccepteachmistakeasalessonand to try to learn from the experience. Traders should build up a history of both successful strategies and those that have not worked, so that he can avoid repeating the same mistakes in the future. Gradually, over time, the investor will build up his success rate overall.

Follow trendsTrying to beat the market does not usually work. Investors should generally watch for trends and try to follow them by purchasing mainly Call options in a bull market and Put options in a bear market. Traders should also remain alert to how the market is moving so that he can alter his tactics as soon as a reversal looks likely.

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Familiarity

Risk can be minimized by trading assets with which an investor is already familiar. For example, a trader who also works in the oil business should aim to trade oil on the commodities market or the shares of major oil companies. However, trading a single asset

will be far too restrictive, and will limit the opportunities for trading success. Trading different assets in various markets will spread the risk, so the best advice is always to gain familiarity in new areas by performingsufficientresearchandanalysis as outlined above.

Risk and rewardTrading is a balance between risk and reward. A greater appetite for risk offers higher returns, along with the reduced probability of success. A safer bet will increasethechanceofaprofitbutwill,in turn, pay less and take longer to accumulatesignificantprofits.

The best strategy is usually to go for a mix of trades. A trader should only optforariskiertradeifhehasafirmreason to believe he is correct in his assumptions. He should opt for the safer option if he is not totally sure. Needless to say, if a trader entertains real doubts about a trade, he should avoid it altogether.

Risk Management

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Limiting your tradesMaking a succession of bad trades, will quicklyexhaustavailableprofit.Whenatrader hits a bad run, he can simply stop trading. If he does that, however, he won’t know when his bad run has come to an end. The best strategy, therefore, would be to keep trading but with reduced stakes.

A good risk management strategy is often to limit each trade to a set percentage of existingcapital.Aballparkfigurewouldbeto never risk more than 8.5% of existing profitsononetrade.Thismeansatraderwould have to make eleven consecutive bad trades before he completely expended his capital. It also means that the amount at risk gets progressively less when a trader is losing but then starts to increase when he enters a winning streak so that, in turn, healsostandstomakemoreprofit.

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Choosing a Binary Options BrokerThe growing popularity of binary options trading has attracted a number of brokers to the market. All have key differentiating features. Since a broker is a necessity in order to trade binary options, it is important to choose one who provides the right level of service for your needs. Some brokers may offer only a limited range of tradable assets in a relatively small number of markets,

which will seriously restrict an investor’s opportunities to trade and make money. A trader should look for those brokers who offer plenty of assets across a range of global markets. In practice, this means there will usually be at least one open market most of the time and better opportunities and availability for trading assets of choice.

Trading platformFollowing a hunch will generally end in failure and a trader should never simply guess when he makes a trade. The primary way to minimize risk is to undertake thorough asset analysis. Technical analysis will establish price patterns that indicate future movements; fundamental analysis will identify events that will cause price changes.

Making successful trades is often about getting in quickly; watching the news and announcements will ensure a trader stays ahead of the market and understands how events are likely to affect prices. The information a trader utilizes should always be current. A trader must act quickly to predict price movements before it is too late.

Choosing a Binary Options Broker

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Ease of useDepositing money and withdrawing accumulatedprofitsshouldbea simple, quick and inexpensive process. Traders should not be unnecessarily prevented from trading nor kept waiting for their money. In particular, look for a broker that offers multiple methods of depositing and withdrawing money, and where the process isn’t an over-complicated one.

Keeping it safeNeedless to say, security is crucial. The broker should offer a safe trading environment. There should be a privacy policy and adequate authentication to prevent unauthorized access to accounts. It is vital that all data and transmissions are securely encrypted so that personal information is not divulged.

One of the most respected providers of online security and authentication solutions is the company Comodo,

with over 200,000 business customers and more than 7,000 affiliatesandbusinesspartnersworking to make the Internet more secure. Any broker that has this level of security will provide the safest possible trading platform. Check and compare what each broker provides and choose the one with the highest level of security.

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Service and support

However experienced a trader becomes, he is likely to want a degree of support at some time. Brokers offer different levels of service that are designed to meet the needs of different types of traders, depending on the type of account that is selected. There should always be a help line, an email address and a live chat facility in case a trader requires urgent support. Look at the type and extent of information that is provided and how often it is updated. Most importantly ensure the information provided is accurate and of the highest quality.

Some brokers offer different accounts directly aimed at different levels of trader from the novice to the experienced to the seasoned professional. It is sometimes possible to start with a practice account where investors can trade without risking any money (although, of course, without accumulating any profiteither).

Certain brokers, however, will require a deposit even for a practice account. Superseding that, there should be a basic account with a low deposit requirement right up to a top of the range account that requires a much higher deposit but provides a more personal and comprehensive service.

In light of the vast array of accounts, brokers and platforms available, it is absolutely essential to choose the brokerthatisagoodfitforyou.


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Frequently Asked Questions

What is a binary option?A binary option, also referred to as a digital option or an all-or-nothing, is an option in which payout is determined at the onset of the contract. Thetraderreceivesafixedamountofreturniftheoptionexpires in-the-money, irrespective of how much the price of the underlying asset has moved. The trader never actually owns the asset. It is the security upon which an options contract is based.

What is an underlying asset?A commodity, index, stock, or Forex pair that can be traded as a binary option.

What is a Call option?An option that provides the trader with a predetermined profitwhentheunderlyingassetishigheratthetimeofexpiration than at the time it was purchased.

What is a Put option?An option that provides the trader with a predeterminedprofitwhentheunderlyingassetprice is lower than when was purchased.

What is the investment amount?The amount of money invested in the option.


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What return will I get for a successful investment?A successful investment will result in a guaranteed return. If the prediction is correct, the trader receives a refund of the stake plus a return on investment that is typically 71-88%.

What return will I get on any given binary option trade in the event that the option expires out-of-the-money?You will receive a small proportion of your original stake. The balance will be deducted from your investment account.

What is the minimum amount to purchase a single option?1 EUR/ 1 USD What is the maximum amount

to purchase a single option?3,000 EUR/USD

I tried to invest an amount for a single option but received an error message telling me I exceeded the maximum investment amount. What should I do?The maximum investment amount you see depends on various factors. However, you can purchase multiple options, one following the other, to achieve a higher accumulated amount.

How do I invest?1. Choose the asset that you want to invest in. 2. Choose a Call or Put option for the underlying asset. 3. Choose the expiry time for the trade. 4. Enter the amount of the investment. You may cancel the selection by clicking “X“ any time before the transaction is approved.5. Click “Apply“6. Approve the trade

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What are the levels displayed in the trading boxes?A level is the quoted price for an option of an underlying asset. The level changes and is updated frequently according to different parameters that Banc De Binary proprietary algorithms take into account. The levels we present in the trading boxes are those at which Banc De Binary is willing to sell options and are Reuters real-time market levels. For more details about how expiry levels are determined, refer to the website (www.bbinary.com).

What is the expiry rate?The expiry rate is the price of the underlying asset according to Reuters at the time of expiry of the option. This rate determines if the option has expired in-the-money or out-of-the-money. A different expiry rate is determined for each underlying asset. The calculation of the expiry rates is detailed on the Banc De Binary website (www.bbinary.com).

What is the expiry time?The expiry time is the time and date when the trade ends. If your forecast is correct at this time, you will be “in-the-money”.

What is the difference between purchasing options in Banc De Binary and buying Put and/or Call options in the stock market?The options available in Banc De Binary are binary options (refer tothefirstquestionforadetaileddefinition).Theyaredifferentto standard (“vanilla”) option chains that are offered by stock exchanges.Thelattertypicallyhavelongerexpirydates,significantlyfluctuatingyields,andcanbesoldbeforeexpiry.Binaryoptionshaveafixedreturnandareofferedfordifferentexpirypointsfromtheend of an hour to the end of a month.


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Where can I view the precise trading hours of each asset?A detailed list of all our available assets, their description, expiry times, symbol and trading hours is presented in the Platform Asset Index on the Banc De Binary website (www.bbinary.com).

What happens if the expiry rate of a given underlying asset is identical to the rate at which the transaction was made?Theoptionfinishesat-the-moneyandtheamountoftheinvestment is returned to you.

What is the time zone of the expiry time?The site’s trading hours and expiry times are shown in a GMT time zone.

Aretheprofitstaxable?As a Banc De Binary customer, you are responsible for your taxation liabilities, if any, at your place of residence. See our general terms for more details.

Why can’t I invest?All our assets are available during market trading hours. On rare occasions, investments are not available for certain assets owing to technical reasons. Usually, these problems are resolved quickly and you may try again shortly. Other than this, you will not be able to investifyouhaveinsufficientfundsinyouraccount.

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Taking a Trading BonusPros and Cons

Some brokers will pay bonuses to traders, for example, on sign-up, which will generally be a percentage of the initial deposit. Trading bonuses offer great value and extra trading leverage, which will boost the trader’s options to make a greater number of trades and become familiar with binary options trading more quickly.Matching bonuses may be made on subsequent deposits so that the trader has further additional funds available. The amounts of these bonuses may vary depending on how the trader makes the deposit, indicating that there are preferred methods that the broker is trying to encourage.Bonuses are sometimes paid when significantfinancialeventsaredueso that traders can take advantage of the opportunities they present. There are also rebate bonuses, where traders receive a percentage of the amount they’ve traded over a period.

As always, a trader should research and uncover the most enticing offers for him.

However, just because the money is essentially “free”, it should not be used recklessly by undertaking trades that are essentially gambles. By all means, traders should make deposits in ways that will earn them thebiggestbenefits,buttheyshouldnot deposit more money than they can afford simply to get the bonus money.

Taking a Trading Bonus – Pros and Cons

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Banc De Binary - types of trading bonusAn account will be given added value when a trader consistently deposits funds. Banc De Binary matches the trader’s real deposit by a certain amount as per the following example:

If Banc De Binary offers a 50% deposit match of up to $50,000, which means that if the trader were to open a new trading account and make an initial deposit of $1,200, Banc De Binary would instantly fund the account with an additional $600, raising the account balance to $1,800.

When trading with bonus leverage a trader must be cautious. It is truly appealing to trade with $20,000 when the initial deposit was only $10,000, but there is a downside.

The trader may close higher trades and make more money initially (or in the long run), but the possibility of losing money increases exponentially. Options trading can be risky;confidenceandresponsibilityare the keys to successful trading.

To help traders starting out with binary options trading online, Banc De Binary offers new customers a tradingbonusontheirfirstdepositas well as re-deposit bonuses. The sign-up bonus gives new traders an extra boost to their trading balance so that they can open their firstpositionswithBancDeBinary’sbonus money until they accrue more experience in the binary options

marketandmoreconfidenceusingthe Banc De Binary platform. After receiving the sign-up bonus, traders are given several other opportunities to boost their account balance. Banc De Binary often offers abrokerbonusbeforesignificantfinancialeventstoenabletradersto take advantage of the market volatility at those times.

Taking a Trading Bonus – Pros and Cons

Deposit matches

Sign-up bonus

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Traders should check out Banc De Binary’s Refer a Friend program to see how referrals can be turned into Forex bonus money.

A rebate bonus is usually offered on a monthly basis and it is Banc De Binary’s way of giving back a percentage of the trader’s investment that month. We also offer special trading bonuses to traders depositing with certain funding methods, such as Moneybookers

and wire transfer. Banc De Binary also has special agreements with certainaffiliatesofferingafreejoining bonus in addition to the sign-up bonus.

Banc De Binary – rebate bonus

Refer a friend

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Personal Broker Program

The Personal Broker program makes use of Banc De Binary’s extensive knowledge and experience and is aimed at institutional, high net worth and retail clients. Our main aim is to enable those clients to make the maximum profitfrombinaryoptionstradingwiththeminimumamountofeffort.

Features of the program

The main function of the personal broker program is to provide trading signals so that clients are advised what to trade and when. This means that all analysis is undertaken by Banc De Binary’s experienced specialists, which in turn, saves the client time and effort.

As a member of the program, clients receive trading signals at any time of the day or night as and when they arise, although these will generally be between 7 a.m. and 7 p.m. (GMT) when the US and European markets are open. These signals will advise a short or long position in a particular asset, indicating that the trader should consider a Put or Call option.

Personal Broker Program

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Personal brokers cannot access accounts and do not trade on the client’s behalf. They simply provide trading signals that are based on thorough research and so offer the best chance of trading success.

The personal broker program requires a minimum deposit of $5,000 US and control of the account remains with the client. Trading signals do not have to be followed and, if they are, the investor can decide on the amount of the trade. Money can be deposited and withdrawn in the normal way and clients can access and monitor the account 24/7.

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VIP Platinum Program and PlatformThe Platinum Program is Banc De Binary’s top of the range

account and requires a minimum deposit of $50,000.

Theaccountoffersarangeofbenefits,suchas:

VIP Platinum Program and Platform

Access to individual competitive prices on options based on the investor’s trading volumes.

Optionsofferedonafirstbaseservicein order to provide the client with top bid.

Optional free access to Banc De Binary’s independent personal Trading Advisory Team.

A wide range of high level publications.

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VIP Platinum Program and PlatformThe Platinum Program is Banc De Binary’s top of the range

account and requires a minimum deposit of $50,000.

Theaccountoffersarangeofbenefits,suchas:

Preferred access to client service 24hoursaday,fivedaysaweek.

A local telephone number that routes directly into the dealing room.

A personal broker who will monitor the client’s account on a bi-daily basis along with an

OptionTrend Analyst.

Eligibility for the MoneyBookers VIP Program.

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Affiliate Program

If you are interested in joining Banc De Binary’s Affiliate Program, please contact an affiliate manager:

Email:[email protected]: 1(800) 656 6163Skype:affiliates.bbinary

Ouraffiliateprogramofferstraders the opportunity to become introducing brokers to Banc de Binary. For every new client introduction, we will reward the referring trader with a percentage of the deposit. The more clients that a trader is able to convey to us, the higher the rewarded revenue will be. Only initial deposits count for remuneration as outlined below.

All commission rates are based on Banc De Binary’s net revenues, which are calculated as gross revenue less any processing fees, cancellations and incentives given to customers such as coupons and bonuses.

AffiliateProgram

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Revenue share plan

CPA payment plan (monthly)

Superinternalaffiliatetiered revenue share plan

Number of Clients Rate per Client

0-50 $10051-90 $15091-150 $200151-250 $300251+ Up to $1,000

Total Revenue Commission

$0–10,000 15%$10,001–50,000 20%$50,001–100,000 25%

Tier Level Commission

1st Tier 2.5%2nd Tier 2.0%3rd Tier 1.5%4th Tier 1.0%5th Tier 0.6%6th Tier 0.5%7th Tier 0.4%8th Tier 0.3%9th Tier 0.2%10th Tier 0.1%

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Banc De Binary Platform Rates

The rates provided on a broker’s platform are all-important. The source of these rates must be completely reliable: the client’s money is depending on it. At the end of the day, the rates decidewhetheratraderwillmakeaprofitorwhether he will suffer a loss.

The rates that clients see on Banc De Binary’s platforms are real live streaming rates, which are displayed by us in real time. Our rates, charts, and market information are provided by Reuters, the world’s biggest and most relied uponfinancialandnewsinstitution.Allourratescan be checked back with the rates published on Reuter’s website. On request, we will gladly check them against the rates of our dealing desk.

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Banc De Binary Platform Rates

The outcome is that your account is as secure as it possibly can be at all times.

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Platform SecurityBanc De Binary provides the highest security standardsinallourfinancialtransactions.

These security measures include:

Non-disclosure of personal information to third parties except where legally obliged to do so.

Online identity assurance ($250,000).

Account authentication procedures ensure that only authorized users can withdraw. Banc De Binary provides the highest security standardsinallourfinancialtransactions.

Adherence by all third party data-processing companies (i.e. when transferring funds) to the same high level of security standards.

Application of the highest level of encryption to all communications to prevent unauthorized viewing of transactions.

Investment in the latest technology ensures that the latest safeguards are always in place.

Platform Security

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Deposits and Withdrawals with Banc De BinaryBanc De Binary aims to make the process of depositing and withdrawing money as simple as possible so that clients can start trading quickly and accessaccumulatedprofitsattheirconvenience.

To offer the best possible service to clients, the following deposit and withdrawal methods are offered:

Deposits and Withdrawals with Banc De Binary

Bank Wire Transfer (international and domestic) via a client’s bank account. This allows secure transactions from $1,000 with no maximum limit, whicharecompletedwithinfiveworkingdays.Bank charges may apply.

Credit/Debit Card, for amounts between $500 and $25,000 ($50-1,500 for third party credit card via MoneyBookers). This method deposits funds instantly but can take up to ten days for withdrawals. There are also credit card fees on such withdrawals.

MoneyBookers eWallet allows amounts between $50 and $1,000 (although unlimited for MoneyBookers VIP accounts). Deposits and withdrawals occur within minutes.

The range of options may be extended from time to time so please view Banc De Binary’s website (www.bbinary.com) for the latest details.

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Deposits and Withdrawals with Banc De Binary

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Types of Accounts

Our Practice Account is available to new investors who want to experience trading binary options without risking any actual money. It has a notional $50,000 limit, is valid for seven days after opening and has the same conditions as the Micro Account except that no money is involved whenmakingtrades.It’stheperfectwaytofindouthowbinary options trading works.

The Micro Account allows investors to trade over seventy assets (stocks, indices, commodities and foreign exchange) using Banc De Binary’s professional trading platform, with full 24/7 support through LiveChat. There’s a minimum $500 deposit. No trading bonuses are offered with this account.

The Classic Account offers access to the full range of binary options types (digital, touch and range) and to all asset types. The minimum deposit is $1,500 and investors can view news and world-class market research, real-time trading ideas through LiveChat as well as TrendStation, Banc De Binary’s innovative trading education program.

There are many different types of binary options traders, from those new to this market to seasoned professionals. Accordingly, Banc De Binary offers a range of accounts that have different features according to each trader’s individual requirements:

Types of Accounts

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Investors can begin trading with any level of account and upgrade it later to suit their needs.

Our Premium (Personal Broker) Account provides everything available through the Classic Account plus extended streaming news and research. Clientsalsobenefitfromtheservicesofapersonaloptions broker who will issue trading signals and deal with account enquiries. A Premium Account Executive Teamisavailable24hoursaday,fivedaysaweekfortrading by telephone, Skype and LiveChat. The account is eligible for the MoneyBookers VIP Program and a minimum $5,000 deposit is required.

The Platinum (VIP) Account is Banc De Binary’s top of the range account and requires a minimum deposit of $50,000. Clients receive options at competitive prices based on their trading volume, access to an independent personal Trading Advisory Team and a wide range of high-level publications. Client service is accessible 24 hours aday,fivedaysaweekviaalocaltelephonenumber routing directly to the dealing room. Further, a personal broker and OptionTrend analyst will monitor the client’s account on a bi-daily basis and the account is also eligible for the MoneyBookers VIP Program.

Education

Binary optionsebook