Binary Options

TRADER E-BOOK
Table of contents:
A word from the CEO
E-book content
About Opteck
What are Binary Options?
Registration
Deposit Funds
Withdraw Funds
The Trading Procedure
Trading Instruments
High/Low
One Touch
Range High\Low
Open A Trade
Frequently Asked Questions (FAQ)
Glossary
What Does it takes to Become a Proftable Trader
12 - 19
14 - 15
16 - 17
18 - 19
20 - 21
22 - 27
28 - 31
32 - 33
02
03
04 - 05
06 - 07
08
09
10
11
2 3 E-book content A word from our CEO
As the CEO of Opteck.com, I would like to personally welcome you to the worlds most
highly advanced and fastest growing Binary Option Platform. At Opteck, we are proud
to offer our traders a secure and technologically advantageous platform in which to
trade Binary Options.
As the global market has expanded into an intricate world of independent brokers,
we hope that you too, will discover the user-friendly and vastly proftable nature of our
platforms two-way Options. The EBook is designed to assist and further your trading
capabilities. With the EBook we offer you an introduction to the Binary Option Market
and an overview of our trading platform, in addition to descriptive analysis of how
our platform can be utilized to trade Currencies, Commodities, Stocks and Indices.
Furthermore, through the expertise of our analysts, the EBook illustrates graphical
detailing of the multiple functions displayed on the Opteck Platform, plus a glossary to
clarify key terminology. We highly encourage you to use the glossary if you encounter
terms with which you are not yet familiar.
This Digital Options Arena offers investors a low risk, yet greatly sophisticated
environment to trade for the purpose of gaining lucrative returns in short periods of
time. We are confdent that our clients will appreciate this highly proftable platform.
We look forward to working with you closely. On behalf of the entire Opteck team, I
would like to thank you for choosing Opteck.com for your trading needs.
Our EBook will provide you with a basic view of the world of binary option trading and
the unique characteristics of Optecks user friendly platform.
Opteck advises traders to utilize the EBook when frst starting the platform, in order
to be aware of all of the information available and to acquaint themselves with how to
use different tools for their advantage.
Both new and experienced traders are welcome to use Optecks knowledge center
for advanced strategies, with the use of technical and fundamental analysis that are
specially modifed for short term trading which suits binary option trading.
In the past decade we have witnessed acceleration in the accessibility for traders
from differing backgrounds all around the world.
The digital era allowed for easy access to the trading feld and as time goes by the
variety of tradable assets is increasing; supporting different individuals to express their
personal knowledge. In todays market you can fnd traders that are equipped with
different backgrounds and typically express trading skills based on their knowledge. For
example; a trader that lives in Canada will often prefer to invest in OIL and the USD/
CAD (U.S. dollar vs. Canadian dollar) using the Forex market, whereas, a trader that
studied biology will look to trade a biotech company by buying or selling (shorting) its
shares based on a personal perspective.
The ability to participate in the market, take part in the global movement, upgrade
awareness of the worlds correlation, all while sitting in a chair at home, is the precise
reason why many individuals every day, and everywhere want to express their personal
view of the market by taking a stand with their own capital.
Best regards,
Ben Zenneti
CEO
A word from the CEO Dear Trader
International: +44(0)208.166.9886 Skype: ben.binary Email: benz@opteck.com
About Opteck About Opteck 4 5
About Opteck:
Over the years, Optecks team of professionals has extensively evaluated the needs of
todays traders and has thus dedicated themselves to put forth a technologically savvy,
yet user friendly software layout that will suit both, beginners and advanced traders,
one in the same. Whilst showcasing up to date market features that allow traders
the opportunity to professionally trade in global fnancial markets without any prior
technical knowledge.
With various locations across the globe, Opteck understands the importance of
accessibility. And with this understanding, Opteck offers its traders the opportunity to
utilize a platform, which is completely web-based. This eliminates the need to download
or install software onto your computer, giving you the advantage of trading from any
computer in the world, regardless of location. Opteck is truly a global trading company.
Educational Infrastructure
The educational facilities available at Opteck, allow even the most inexperienced of
traders the ability to understand the market quickly and successfully. With the experience
and expertise of its professionals, Opteck has assembled an array of extensive tools and
educational material exclusively available to its traders. Additionally, Optecks personal
account managers provide one-on-one support and training to further develop and
enhance these learning materials.
Success with Binary Options
In order to trade Binary Options successfully, it is necessary to have a thorough
understanding of the relevant terminology. Despite the conceptual simplicity of trading
Binary Options, mistakes may occur and misinterpretation may lead to unproftable
outcomes. Comprehension of complex trading terminology matched with the
understanding of how they may be applied, is benefcial to any trader, as a tool to execute
successful trades quickly and effectively. As with all success in trading, increasing the
depth of knowledge is an important and central aspect to achieving your goals.
Opteck Client Support
As a member of the global market, Opteck values and understands the great signifcance
of professional service that should be provided, not as an obligation, rather as a frst
step in continuing and maintaining a long term relationship with its traders. Opteck
offers 24/7 client support accessible via phone, chat or email.
From the frst call, through to the education and account management, Opteck client
support is compelled to ft the needs of its traders. Valued clients are the foundation of
Optecks success.
Platform Accessibility:
Since traders can access the platform from around the world, all that is needed is
a computer and an Internet connection. Opteck is familiar with additional needs
of accessibility, and have added an application that may be downloaded onto your
smartphone free of charge. The application name is Opteck Binary and allows access
to all trading services.
Transparency of the Asset Price:
The asset value presented on the Opteck Platform is a direct live feed from Reuters,
which refects a true market value. Allowing traders the ability to analyze the Binary
Option Market with technical and fundamental tools from other markets for their beneft.
*Fractal deviation may occur in an offered Option rate as an outcome of the average
calculation between the bid (buy price) and ask (sell price) of an Option.
Opteck presents a single Option rate for call and put, in order to avoid any additional
market fees.
*
Binary options are is the new kid in the block of the fnancial market, particularly online.
More and more traders realize that binary options is a lot easier and proftable that forex and
other traditional trading methods.
7 What are Binary Options What are Binary Options 6
What are Binary Options?
A Binary Option is a prediction on how a certain asset value will alter in a given time
frame. In order to understand the simplistic beauty of trading Binary Options, let us
frst take a look at the mechanics of how to investment in other trading markets.
In the traditional form of investments, the investor essentially purchases the
underlying asset that they have interest in. If the investor sells at a time when the
asset has increased in value, they have made a proft, adversely, if they sell when the
asset has decreased in value, they have clearly lost money.
This type of investment compels the investor to constantly worry about when to sell.
Binary Option trading is much simpler.
In Binary Options, you trade on the market, not in the market. Compared to the other
trading methods, you are not putting at risk the entirety of your capital, as you are not
buying the asset, only predicting its movement.
Trading Binary Options using our platform is easy, quick and reliable.
In its literal translation, the word binary is defned as having two parts. In Binary
Option trading there are only two directions for the investment. One possibility is that the
price of your asset will increase; if you do predict an increase, this type of investment is
termed a call. The other possibility is that the price of your chosen asset will decrease;
if you predict a decrease, this type of investment is termed a put. Thus, what you need
to decide as an investor is whether to call or put.
The frst decision to make, in Binary Option trading, is purely what to invest in.
For instance, if you have an interest in Gold prices, you may choose to place a Binary
investment in Gold. Obviously, the more familiar you are with the Gold market, the
better your chances are of successfully predicting the fuctuations in the price of Gold.
For the purpose of this example, we are going to presume that you are in fact interested
in the Gold market. You then predict that the price of Gold will increase between now
and the expiry time (trades vary between 1 minute up to 1 week.) Subsequently all you
need to predict in Binary Option trading is whether the price will increase or decrease, it
is inconsequential by how much. The last decision that you will need to make is simply
how much money to invest in this trade. You will receive a predetermined percentage
of proft, depending on the cost of the Option. You merely need to elect how much you
would like to invest or how much you are looking to proft. According to your prediction,
you can make up to a 100% proft. As a side-note, an additional perk of Binary Options
is thet the amount of investment is much lower in order for you to gain a noticable
proft, compared to what the required investment in other trading forums.
You have currently decided upon the asset in which to invest, the amount and its
direction. Lastly you wait for the expiry time, to determine whether the trade was
successful.
What are the Risks?
Since there are only two possible outcomes for the prediction, basically you could either
be right or wrong; it is only natural that the amount of loss or gain should be set from
the beginning, which is in fact the case. This is yet another agreeable aspect of Binary
Options, what you stand to lose or gain is set forth from the beginning.
Now that you have an understanding of the basic principles of Binary Options, let Opteck
help you get started. And as you can see, the process is simple, quick, and also very
exciting.
Best of luck.
*
Yet another agreeable aspect of Binary Options, what you stand to lose or gain is set forth
from the beginning
8 9 Deposit Funds Registration
Registration: Deposit Funds:
In order for you to start trading Binary Options, you will frst need to register onto our
website. It is necessary to complete all required felds with agreement to the terms and
conditions.
The process of adding funds to your account is quick and simple. You may process
the deposit via the platform or with the assistance of your account manager per your
request. To fund the account you will frst need to login to our platform, click the Deposit
button located on the right hand side or you may also use the Banking tab, where you
choose the Deposit button from the drop down menu.
Opening an Account
From any page on our
website you will see an
Open an Account button at
the right top corner of the
page.
This will direct you to the
registration page
Registration page
complete all the
required felds*
and press the Register
button.
Once the registration
process is complete,
you will receive the
confrmation e-mail.
*
Opteck accepts a variety of payment methods: Visa, MasterCard, American Express, CashU,
Bank Wire Transfer, Ewallet and Western Union.
*
Clients must take full responsibility in ensuring that trading on Opteck is in compliance with the
laws and regulations in their country of residence.
Depositing Funds
To fund your account, login to
our platform and:
click the 1 "Banking tab" ->
2 "Deposit button"
you can also use the
3 Deposit button
Deposit Page
You will be directed to the
deposit page, where you will
be asked to enter in your
billing information and chosen
method of payment.
A client account balance must
be suffcient to cover all open
trade positions at all times.
10 11 Trading Procedure Withdrawal Process
Withdraw Funds: The Trading Procedure:
Opteck.com offers fast and secure methods to execute your withdrawals.
We support wide range of currencies and a selection of withdrawal methods such as
Bank wires, Credit cards, Webmoney, cashU, Moneybookers, and Western Union.
A withdrawal will be processed within 24-48hours of the request.
After opening an account and making a deposit, you will then have the ability to open
a trade on our platform.
The Asset:
First you decide on the asset, in which you would like to trade. With Opteck you can
trade different asset types, such as a stock, an index, a commodity or a currency pair
from the forex market (foreign exchange.)
With its accessibility and diversity of assets, the Binary Option Market is now considered
to be the largest market in the world.
Each individual trade will display the asset, the current market price, the payout
percentage and the expiry time.
The Investment:
Next you decide the amount that you would like to invest for the particular trade. As
an Opteck trader, we will provide you with an article describing money management, in
order for you to be able to establish a considerable investment based on your accounts
liquidity.
The Direction:
Lastly, you will decide upon the direction of the asset that you want to trade. We advise
for you to frst read one of our articles Choosing a trade before you begin. The tools
presented in this article will provide you with aspects needed for consideration when
choosing or predicting the direction of an asset.
If you predict the asset price will rise before the trade time has expired, you will
chose the call (green) Option or if you predict the asset is going to fall you will chose
the put (red) Option.
Once you have fnalized these steps, the trading process is now essentially complete.
You can relax and await the expiration of the Option trade to conclude if your prediction
was correct.
*
We support wide range of currencies and a selection of withdrawal methods such as
Bank wires, Credit cards, Webmoney, cashU, Moneybookers and Western Union.
To Withdraw Funds:
To withdraw funds from
your account click the
1 "Banking" and choose
2 "Withdraw" button
from the drop down
menu.
Withdrawal page:
Here you will be asked
to enter in the amount
you wish to withdraw
from your account.
As Simple as that
12 13 Trading Instruments Trading Instruments
Trading Instruments:
Opteck offers a variety of instruments for trading Binary Options.
Each instrument has its own unique benefts that you can use depending
on your preferences, in addition to diverse market formations.
High-Low
In High/Low you decide whether the market price will close higher or will close
lower than the current price.
One Touch
In One Touch you decide whether the market price will reach a certain amount
(at least once) before the expiry time.
Range
In the Range instrument, there is both an upper and a lower target price that
form a boundary range.
Expiry of an Option:
In the Range instrument, there is both an upper and a lower target price that form a
boundary range.
In-The-Money (ITM)
The outcome of the trade was proftable. For example, if the
Option was a Call, then the current price of the underlying
asset would be higher than the original price at the time the
Option had been purchased.
At-The-Money (ATM)
When the current price of the underlying asset is the same as
when the Option was purchased
Out-Of-The-Money (OTM)
The outcome of the trade is not proftable. For example, if the
Option was a Call, then the current price of the underlying
asset would be lower than the original price at the time the
Option had been purchased.
*
Tradiotionally, high/low type is the well-known binary options type of trading, One Touch & Range
are the type of trading that are considered to be riskier however the return on these positions
is usually higher and makes the trading process more intuitive and interesting.
14 15 Trading Instruments - High/Low Trading Instruments - High/Low
High/Low:
In High/Low you decide whether the market price will close higher or
will close lower than the current price.
In a call Option (predicting uptrend) the price needs to stay
higher than the striking price at the end of the Options time frame.
In a put Option (predicting downtrend) the price needs to stay lower
than the striking price at the end of the Options time frame.
High/Low- Expiry of an Option
In-The-Money expiration:
HIGH (CALL) Options expire ITM when the market price is higher than the
target price at expiration.
LOW (PUT) Options expire ITM when the market price is lower than the
target price at expiration.
Out-Of-The-Money expiration:
HIGH (CALL) Options expire OTM when the market price is lower than the
target price at expiration.
LOW (PUT) Options expire OTM when the market price is higher than the
target price at expiration.
Options will expire At-The-Money if the Option expires at the same price as
the strike price.
Instrument type
Asset type
Asset Name
Asset Name
The white area shows until when the
trader can join the Option, invest
more or close a current position
The current
market price
The expiry time
and closing time
The grey area indicates
when the position is
action blocked
Vertical view of the
price range
An additional
sector to place
a call or put
Call or put
buttons
Investment
amount bar
The current
market price
The current
market price
Horizontal view of the
time scale
Instrument\Asset Navagation
Click within the box to
view the asset chart
The percentage of proft
(percentage the trader will earn
if the prediction is In-The-Money)
The percentage of return
(percentage the trader will earn if
the prediction is Out-Of-The-Money)
Asset Name
Choose a call
Option (uptrend)
Choose a put
Option (downtrend)
The strike price
(current price by
Reuters)
The closing time
Asset Information
Asset chart Information
16 17 Trading Instruments - One Touch Trading Instruments - One Touch
In One Touch you decide whether the market price will reach a certain amount (at least
once) before the expiry time.
In a call Option the price needs to climb and reach the green line presented on
the chart (approximately 30 pips.)
In a put Option the price needs to lower and to touch the red line presented on
the chart under the striking price (approximately 30 pips.)
Instrument type
Click within the box to
view the asset chart
The percentage of proft
(percentage the trader will earn
if the prediction is In-The-Money)
The percentage of return
(percentage the trader will earn if
the prediction is Out-Of-The-Money)
Asset Name
Choose a call
Option (uptrend)
Choose a put
Option (downtrend)
The strike price
(current price by
Reuters)
The closing time
Asset type
Asset Name
Asset Name
The white area shows until when the
trader can join the Option, invest
more or close a current position
The expiry time
and closing time
The grey area indicates
when the position is
action blocked
Vertical view of the
price range
Call or put
buttons
Investment
amount bar
The current
market price
The current
market price
Horizontal view of
the time scale
Instrument\Asset Navagation
Asset chart Information
One Touch:
One Touch- Expiry of an Option
In-The-Money expiration:
HIGH (CALL) Options expire ITM when the price climbs and touches
the upper green line before expiration.
LOW (PUT) Options expire ITM when the price crosses and touches
the lower red line before the expiration.
Out-Of-The-Money expiration:
HIGH (CALL) Options expire OTM if during the time frame the price
does not touch the green line.
LOW (PUT) Options expire OTM if during the time frame the price
does not touch the red line.
Options will expire At-The-Money if the Option expires at the same price
as the strike price.
Asset Information
18 19 Trading Instruments - Range Trading Instruments - Range
In the Range instrument, there is both an upper and a lower target price that form a
boundary range.
In a call Option (predicting uptrend in a limited range) the price needs to stay higher
than the striking price and lower than the upper line.
In a put Option (predicting downtrend in a limited range) the price needs to stay
lower than the striking price and higher than the lower line.
Instrument type
Click within the box to
view the asset chart
The percentage of proft
(percentage the trader will earn
if the prediction is In-The-Money)
The percentage of return
(percentage the trader will earn if
the prediction is Out-Of-The-Money)
Asset Name
Choose a put Option (area range
is between the current price
down to the lower grey line)
Choose a call Option (area
range is between the current
price up to the upper grey line)
The strike price (current price
as presented on Reuters)
The closing time
Asset type
Asset Name
Asset Name
The current
market price
The white area shows until when the
trader can join the Option, invest
more or close a current position
The expiry time
and closing time
The grey area indicates
when the position is
action blocked
Vertical view of the
price range
Time remaining to
join the position
Call or put
buttons
Investment
amount bar
The current
market price
The current
market price
Horizontal view of the
time scale
Instrument\Asset Navagation
Asset Information
Asset chart Information
Range High\Low:
An additional
sector to place
a call or put
Range - Expiry of an Option
In-The-Money expiration:
HIGH (CALL) Options expire ITM when the market price stays within the range
between the upper green line and the strike price throughout the trade.
LOW (PUT) Options expire ITM when the market price stays within the range
between the lower red line and the strike price throughout the trade.
Out-Of-The-Money expiration:
HIGH (CALL) Options expire OTM when the market price exits the call range
sector during the trade.
LOW (PUT) Options expire OTM when the market price exits the put range sector
during the trade.
Options will expire At-The-Money if the Option expires at the same price as the
strike price.
20 21 How to Open A Trade How to Open A Trade
The Opteck Platform offers two methods of opening a trade:
1 Through the trading box.
2 Directly from the chart.
Open Trade:
Once the trade is open, the sector below the chart will reveal trade summaries, Recent
Trade Actions, for all current open positions.
Completed Trade:
By defnition, the Binary Option offers a predetermined time frame that will automatically
close the Option at the time of expiration.
Opteck traders have the choice to close a trade before the closing time (white sector
of the graph) whether the Option is In-The-Money or Out-Of-The-Money.
To access the possibility of closing a trade early, click the 1 blue arrow at the right
hand side of the Recent Trade Actions, which will then prompt the 2 selling data for this
trade.
The manual closing of a trade before expiration follows with a partial return rate %,
offered by
Optecks algorithm calculation. If you agree with the offered closing rate and choose to
proceed, simply click on the 3 blue sell button and the closure will be complete.
Open A Trade:
1 Trading box:
The trading box is located at the bottom of the trading page, under the asset chart. In order to
buy an Option, you simply select the direction (call or put) and the amount you want to invest
and then click the Invest Now button.
2 Trading directly from the chart:
While in the chart, click the green or red
arrows to open the trade, a trading box will
then appear on the chart, where you will
complete the trading process.
*
Opening a trade is as simple as 1-2-3: Choose your asset, make your choice (high/low) and set
the amount for that trade and click "Invest now".
*
Trading binary options is the ultimate way to make hundreds of percentage in profts in just a
matter of minutes from your home, offce or no even on the go with our mobile trading platform.
2
1
3
22 23 FAQ - Trading FAQ - Trading
Trading
What are Binary Options?
A Binary Option differs from a regular Option in the fact that it can be described as
all-or-nothing and is only required to expire above or below the strike price rather
than being sold at the given price. The payouts for Binary Options are expressed as
a percentage of the original investment and are pre-determined prior to entering the
trade. This fxed value is paid if the Binary Option expires in-the-money or the initial
investment, less the protection rate, will be lost should the Option expire out-of-the-
money. The degree to which the traded Option ends up in or out-of-the-money is
irrelevant to the value of the payout, which is pre-determined at a set value. Most in-
the-money Options payout a value of 65-100% of the initial investment.
What are underlying assets?
This is the value of the stock, commodity or currency from which the value of the
Option is derived. Due to the fact that there is no ownership of any asset when a
Binary Option is purchased, the cash value refects the live market price of the asset
on which it is based.
What are call Options?
A call Option is simply a Binary Option, which generates a proft if it expires above the
strike price at the time of purchase. This is similar to going long or buy on a trade,
although the Option can expire at any point above the strike price and this will result
in the payment of the pre-determined value of the Option. If the Option expires at
precisely the level of the strike price, then the initial investment is returned in full.
What are put Options?
Conversely, put Options become proftable if the Binary Option expires below the
strike price. The pre-determined payout is triggered if the Option expires at any point
below this strike price. If the Option expires at precisely the level of the strike price
then the initial investment is returned in full. These Options are similar to going
short or sell in trading where the optimal outcome for the investor is for the price
to fall.
Frequently Asked
Questions (FAQ):
What is an investment amount?
The amount of money placed against the Binary Option trade. This amount is not
fxed and can vary between traders; the investment amount determines the level
of pre-determined payout expressed as a percentage of the given amount. It also
determines the rate of return on an investment expiring out-of-the-money.
What is the time zone presented on the platform?
Optecks platform presents the time zone according to your location (computer IP
address) and no additional changes need to take place.
When can I invest?
The market must be open, in order for Opteck to allow the assets to be available for
trading.
Depending on your time zone, assets are unavailable for trading during Saturdays and
Sundays, until the market will renew its weekly exchange. Assets that are attached
to a specifc market, such as indices and stocks, will have to have a working related
stock exchange, in order for them to be tradable.
How to Invest?
Follow these 4 simple steps:
1. Choose an asset- this depends upon your personal perspective or the use of
different methods described in the EBook (correlation, fundamental analysis,
technical analysis)
2. Choose a direction call Option for an uptrend and put Option for a downtrend
3. 3. Decide the amount you would like to invest Opteck suggests for you to read
the money management explanation and to best follow the methods
4. Invest in an Option according to your presumption.
5. By clicking on the put or call button, the investment sheet will allow you to
enter this information and approve the execution of the trade. The data on the
information sheet will update constantly to refect the changing price of underlying
assets. The selection can be cancelled at anytime by pressing the X button before
the transaction has been approved.
24 25 FAQ - Trading FAQ - Trading
How do you set the market price of an asset?
Opteck receives the asset value from Reuters. When compared to the NetDania
prices (that are considered to be the standard pricing tool by traders all around the
globe) it is then noticeable that the Opteck price has more precision, as it provides
an extra digit, which presents the price more accurately.
What return will I get if my Option ends In-The-Money?
A successful investment will refund the traders account with its original investment
and a proft depending on the Options scale. The proft percentage is presented on
the Option and varies between 65%-100% depending on the instrument being used
and the cost of the Option.
I attempted to invest a certain amount for a single Option, but got an error
message saying I exceeded the maximum investment amount. What do I do?
The maximum level of investment varies and is determined on a number of factors,
although there is no restriction on buying multiple Options. If the maximum level of
investment is reached on a single Option, this can be spread across several Options
purchased cumulatively one after the other. This way the maximum investment can
be made on multiple Options until the level of desired investment is reached.
What are the levels displayed in the trading boxes?
The prices of underlying assets change often and this is refected in the quoted price,
the level. The levels are determined by the Opteck proprietary algorithms, therefore
the price of the Options displayed in the trading boxes refect the average price
Opteck calculates between the bid price and the ask price of the market. For this
reason, they are very similar and practically refect the real-time market price.
What are expiry levels?
This level is the price at which the Option offcially expires according to Reuters. It
is the price that will establish whether the Binary Option has expired In-The-Money
or Out-Of-The-Money. Across the different underlying assets there will be different
expiry levels.
What are expiry times?
This is the precise time and date when the Binary Option expires. This expiry time is
predetermined at the time of execution.
Can we change the expiry times or time frame?
No, the time frames are set before you enter the trade. Our trading increments vary
between 1 minute up to 1 week. And you can have as many as 20 trades open at one
time. This gives you a lot of fexibility within the market.
What is the difference between the closing time and the expiry time?
The expiry time is when the Binary Option expires, and has ended its pre-determined
life cycle, whereas, the closing time is when you are no longer able to take action on
the trade, whether that be to enter the trade, or to sell out the trade.
How are purchasing Options in Opteck vs. buying put or call Options in the
stock market different?
The difference between these two situations is that Opteck provides Binary Options,
whereas traditional stock Options are those purchased by stock exchanges. Binary
Options are popular with investors because they can offer shorter Option contracts
vs. traditional vanilla Options. Binary Options offer increased fexibility and can
range from one hour to one month for each Option. The traditional exchange-traded
Options are characterized as having longer expiry dates and determined by the degree
of price fuctuation at the time of sale, they then do not have a predetermined payout
rate. They do beneft from the ability to be sold at anytime, whereas Binary Options
can only be sold at the time of expiry.
What do the colors mean for the levels on the trading foor?
The colors refect the relative position of the price against last trading price. The
Opteck expiry level is either higher (green) than the last price or lower (red) than
the last price.
If an expiry level of an underlying asset is the same as the level at which a
transaction was made, what happens?
If the price expires at precisely the level at which the Binary Option was executed
(At-The-Money,) then the investment will be returned in full to the investor.
Are these profts taxable?
Taxation will generally depend on the tax law governing the country of residence.
Opteck customers are therefore responsible for their own tax liabilities and Opteck
has no liability over payment of tax.
Why am I unable to invest?
If an account contains insuffcient funds to invest in a Binary Option, it will be unable
to execute an investment. Opteck trading room operates within the market hours,
thus outside of these hours (although you may be able to view the value of the asset)
the platform will not be able to execute investments. If these are not the reasons for
your issue, please contact support at Support@Opteck.com
What is the minimum investment on an Option?
The minimum investment is 25$
26 27 FAQ - My Account - Technical FAQ - Trading
What is the maximum investment on an Option?
The maximum investment is 5000$ Banking (deposit or withdrawal)
What are my deposit Options?
Deposits can be made in multiple ways; all major credit cards, bank transfer, western
union or ewallet may be used to fund the account. Details of deposit Options are
available on the Funding Process page.
What currencies are available for use in My Account?
All major currencies are supported. The selection of currency cannot be changed
after the account has been registered.
Is there a minimum withdrawal?
There is not a minimum withdrawal amount but in order to withdraw cash you will
need to have sent us your identifcation papers.
How may I withdraw profts?
Login to your account and go to the My Account tab, then click on the Withdraw
button and follow the instructions for withdrawal.
Must I deposit money to register?
Deposits nor fnancial data are not necessary for registration.
What is the meaning of Reverse Withdrawal?
Reverse Withdrawal allows a withdrawal request to be reversed even if it has already
been entered into the system. This prevents situations where a withdrawal may
prevent investing activity due to insuffcient funds. The reversal Option will allow
funds to be reaccredited to your Opteck account and these funds can then be utilized.
What is a Swift code?
A Swift code is an interbank transfer code which allows money to be exchanged. Each
Swift code is a unique eight-digit code ending in XXX. Your bank will be able to inform
you of this number.
My Account
I forgot/lost my password. What do I do?
If you forget your password, the procedure to receive this is available on the homepage.
Click on the forgot password button, enter your personal details and click send. You
will be emailed your password details to the email account used during registration.
If you forgot your username, we encourage you to contact Client Services.
Where may I see my transaction history?
All account activity may be accessed under the My Account tab.
Why can't I see a particular asset?
The assets that are displayed on the trading page by default are the assets that have
proven to be most in demand and active. Further assets can be found in the Options
menu, or in the Asset Index.
How may I change my personal details?
Personal details and information can be changed and updated under the My Account
tab, titled Personal Details. Alternatively, details can be changed by email or by
phone.
Technical
Do I need to download any software to use Opteck's trading platform?
No. All that is required to invest with Opteck is registration and an initial deposit.
How do I change the display language?
Languages can be changed by using the drop down menu at the top of Optecks
platform. The default language after login will be the one selected at registration. In
order to change this, please get in touch with Client Services.
*
If you have any further questions you are always welcome to contact our fnancial experts
team Or your peronal account manager.
28 29 Glossary Glossary
Glossary
60-Second Option
An Option for a period of 60 seconds.
American Option or Option
An Option that can be exercised at any time during its lifespan. These Options, unlike
European Options (i.e. binary or digital) do not need to wait until maturity to be
exercised.
Ask
The price at which an investor can buy an asset in the fnancial markets. The asking
price is a part of the formula that is used to calculate the expiry level of an asset.
Asset/Underlying Asset
Underlying assets are used in derivative trading to describe an asset whose price
can be derived from a different asset. Derivatives are exchanged for cash and
therefore do not require an exchange of the physical asset. Underlying assets refer
to a contract based on the price of these assets but without requiring its exchange
or even ownership.
At-The-Money (ATM)
When the current price of the underlying asset is the same as when the Option was
purchased. (See In-The-Money, Out-Of-The-Money)
Binary/Digital Options
Options that will payout a fxed amount, if the asset on which the Option is based
reaches the traders selected direction at the expiry time.
Call
When a trader predicts that the price of an asset on expiry will be above the strike
price of the Option.
Put
When a trader predicts that a price of an asset on expiry will be below the strike price
of the Option.
Trading Hours
Each asset has its own trading hours and/or trading days; in addition to holidays.
Current Price
The current market price for an underlying asset. Once the Binary Option has been
purchased the price at which it was executed becomes the strike price. Current prices
are determined objectively by real-time data providers such as Reuters.
Entry Rate/Strike Price
The current market price for an underlying asset when an Option is executed
European Option
An Option that can only be exercised when it reaches the end of its life. Most Binary
Options are European.
Expiry Rate
The price of the underlying asset when the Option expires. This price determines
whether the Option fnishes At-The-Money, In-The-Money or Out-Of-The-Money.
Expiry Time
The time when the position will be closed and it becomes known whether the Binary
Option trade is successful or not. The expiry time is an important and decisive factor
in the outcome of the Binary Option. The choice of expiry time for a trader may vary.
It is important for a trader to understand the timeframe with which they are planning
to trade. In Binary Options, the expiry time is a critical factor in the success of a trade.
Fundamental Analysis
A method of evaluating a security by utilizing economic, fnancial and additional
factors. The goal is to analyze all the factors that can affect a security, such as overall
economic conditions, industrial environment and company-specifc factors.
Index/Indices
An index represents a basket of stocks. For more information about the indices traded
on the Opteck platform see Asset Index.
30 31 Glossary Glossary
High/Low:
In High/Low you decide whether the market price will close higher or will close lower
than the current price.
-In a call Option (predicting uptrend) the price needs to stay
higher than the striking price at the end of the Options time frame.
-In a put Option (predicting downtrend) the price needs to stay lower than the
striking price at the end of the Options time frame.
In-The-Money (ITM)
The outcome of the trade was proftable. For example, if the Option was a Call, then
the current price of the underlying asset would be higher than the original price at the
time the Option had been purchased. (See At-The-Money, Out-Of-The-Money)
One Touch:
In One Touch you decide whether the market price will reach a certain amount before
the expiry time.
-In a call Option the price needs to climb and reach the green line presented on
the graph (approximately 30 pips.)
-In a put Option the price needs to lower and to touch the red line presented on
the graph under the striking price (approximately 30 pips.)
Opteck Rates
Opteck enables the client to buy or sell an asset with no market spread. The open
rate of a put Option is same as the open rate of a call Option.
Option
A fnancial derivative that represents a contract sold by one party to another. The
Contract offers the buyer the right to buy (Call) or sell (Put) a security, or other
fnancial assets, at an agreed upon price (strike price) during a certain period of time
or on a specifc date.
Return rate
The return rate is a value of the contract for the successful expiry of a Binary Option.
The return rate is predetermined. Therefore it does not alter depending on the relative
success of the speculation, if the contract expires one point or ffty points above
the price in a call Option it would still result in the same payout. The return rate is
expressed as a percentage of the initial trade investment.
Protection rate
The protection rate refers to the guaranteed return of a marginal amount of the
traders original stake. Therefore, if the Binary Option fails and expires unfavorably
for the trader, a small percentage of the original stake will be returned. The protection
rate is predetermined prior to executing the trade, in the same way that the payout is
also fxed from the start. The protection rate acts as a small consolation in the event
that the price moves against a trader.
Out-Of-The-Money
The outcome of the trade is not proftable. For example, if the Option was a Call, then
the current price of the underlying asset would be lower than the original price at the
time the Option had been purchased. (See At-The-Money, In-The-Money)
Range:
In the Range instrument, there is both an upper and a lower Option target price that
form a boundary range.
-In a call Option (predicting uptrend in a limited range) the price needs
to stay higher than the striking price and lower than the upper line.
-In a put Option (predicting downtrend in a limited range) the price needs to stay
lower than the striking price and higher than the lower line.
Reuters
The Reuters System is one of the worlds leading fnancial data providers. It is the
system in which Opteck refers to for the platforms expiry rates.
Stock index
Stock values for a particular group of stocks (often popular stocks) are summed up
to create an Index, such as The Dow Jones Industrial Average.
Technical analysis
A method of elevating a security by evaluating statistics related to its historical
performance, such as past prices and volume. Charts and graphs, in addition to other
research tools, are utilized to identify any possible patterns that may be indicators
of future activity.
Trend
Rrefers to the movement of a price over a period of time, the longer the period of time
where price moves sustainably in the same direction the larger the trend. Recognition
of a trend can allow speculators to make informed decisions based on the probability
of the future direction of price.
Turnover/Volume
A measure of activity showing the number of shares or contracts that are traded
during a given period of time.
32 33 Become a Proftable Trader Become a Proftable Trader
What Does it takes to
Become a Profitable Trader
Turtle Trading; A Market Legend:
Back in the 80s, legendary commodity traders Richard Dennis and William Eckhardt
used to have frequent discussions about their success. Dennis believed anyone could
be taught to trade successfully, while Eckhardt countered that Dennis had a special gift
that allowed him to proft from trading.
An experiment was set up by Dennis to fnally settle this debate. Dennis would fnd a
group of people to train, using his rules, and then have them trade with real money. He
called his students "turtles" after recalling turtle farms he had visited in Singapore and
professed that he could grow traders as quickly and effciently as farm-grown turtles.
The turtles were taught very specifcally how to implement a trend-following strategy.
The idea was that the "trend is your friend," meaning you should trade call on the
breaking out of the upside of a trading range and trade put on the downside.
Dennis had two turtle classes that he personally trained, lasting two weeks. They
then went on to trade professionally, under supervision, and earned more than $175
million in an astonishing fve years.
What can we learn from this historical tale?
zatSecondly, it is worthwhile to take note that once the turtles quit their jobs as
traders and went home to try to duplicate this same line of work, using their own
funds they lost it all. The moment they tried to trade as home-traders, they failed
to follow the strict rules of trading. The absence of a supervising manager, overseeing
their trading list, opened the door for their individual perspective driven by psychology
and emotions. Once you have the help of Optecks account manager, they will provide
you with a professional analysis of your behavior as a trader, in addition to critique and
elevate your knowledge and trading skills.
Binary Options is the only trading method that allows you to eliminate the noise of
the live market by applying a specifc pattern to trade on that will actually lower the
emotional element and elevate the professionalism of an individual trader. And then
position themselves in front of the sea of professional traders around the world.
As Optecks traders you will be granted education that specifes the methods used
to master our ability to become a professional trader through logical, sophisticated,
yet simple explanations for the different tools and observations of the market. It is
essential to follow these methods to gain confdence and to raise the percentage of your
proftable trades, however, more so to understand accurately why its essential to do so.
The Rules:
1. Look at prices rather than relying on the information from the media and newspaper
commentators to make your trading decisions.
2. Have some fexibility in setting the parameters for your buy and sell signals. Test
different parameters for different markets to fnd out what works best, from your
personal perspective.
3. Plan your exit as you plan your entry. Decide when you will take profts and when
you will cut losses.
4. Use the average true range to calculate volatility and use this to vary your position
size. Take larger positions in less volatile markets and lessen your exposure to the
more volatile markets.
5. Don't ever risk more than 2% of your account on a single trade.
6. If you want to make big returns, you need to get comfortable with large drawdowns.
Please note: This method was established and performed with the stock market.
trading in binary options, Essentially, we can discard the rules 2,3, and 5, which will
actually make your trading experience far simpler.