Welcome to the website of Binary Options Australia. We aim to bring you the most updated and valuable information that could help you make more profits from binary options trading. Many people consider this type of trading a fine art form, and a large number of traders are able to make profits repeatedly by trading online many different kinds of binary options. Below are the best Binary Options Brokers for Australian citizen.
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We always try our best to put all the information together within our website so that you – our dear traders could easily access it whenever you ask yourself questions such as “Where can I trade binary options,” or “What is the best ways that I can trade options online?”
Traders often call binary options ‘all-or-nothing’ options, because you can be paid either all or nothing at all. The amount you receive as your gain is fixed, so these options are also called FRO’s-Fixed Return Options, or more commonly “digital options.”Trading these options simply requires traders to predict the direction in movement of an underlying asset’s price: whether it is going up or down, with no other factors taken into account.
Because traders know well their exposure and their potential gains when trading, binary options are often regarded as the simplest product to trade. This type of trading is also growing at a very fast pace; perhaps it is the fastest growing one.
Binaries are capable of giving traders a flexible trading approach without much trouble, so people often consider it a mass market financial instrument. No matter what your purpose is, short-term speculation or hedging your portfolio, you are very likely to receive good gains as well as popularity among traders within a short time with binaries.
Binary contracts are available on a wide range of underlying assets, including stocks, currencies, indices and commodities.
Traders can make a ‘Call’ or ‘Put decision regarding their prediction in the direction of underlying asset’s price. A contract will expire ‘in the money’ if the trader has accurately predicted the direction. On the contrary, wrong predictions will lead to the contract expiring ‘out of the money,’ whereas the contract will expire ‘at the money’ if at the expiration time, the asset’s price is equal to the strike price. Unless otherwise determined and agreed in the contract, there will be a fixed cash return which is often the initial investment.
Advantages of Binary Options
Because all traders need to do is guessing the direction of the asset price’s movement, binary options are both easy to understand and straightforward to trade.
Limited risk and predetermined payout
It is completely possible to know the potential reward and risk from the start, as the payoff of a binary option contract is always determined beforehand. Adversely, we cannot know the possible loss or gain for traditional options as there are no outlined parameters.
No matter how much the asset price is at the expiration time, as long as your contract ends ‘in the money,’ you will always receive the payout at the pre-determined level.
Simplified hedging of your portfolio
Many people make use of binary options to effectively hedge existing positions. Binary options are a product compatible to most popular trading methods and strategies. With binary options, we can choose from a vast selection of short-term contracts from all markets, which also provide the possibility of intra-day trader. Binary options are different from vanilla options: with binary options, you can still collect the full payoff when your contract expires in the money even though there is a very small change in price.
Binary options traders are able to trade on multiple time frames because these options are issued 24/7. Moreover, because binary options are offered on many different underlying assets from different exchanges, we are now able to trade these options 24/7 from the same trading platform.