Binary Options FAQ

Binary Options FAQ

WHAT TYPES OF TRADING INSTRUMENTS DOES AlphaFX24 OFFER?

AlphaFX24 offers our traders four instrument types to make the most of your investment opportunities:

  • High/Low
  • Touch/No Touch
  • Boundary
  • 60 Second Trades

WHAT IS THE ‘TARGET PRICE’ OF AN OPTION?

Target prices are the purchase amount at which AlphaFX24 sells the option. These amounts are predetermined by AlphaFX24’s market analysis, based on the most current data available. As an example for a High/Low instrument, traders can opt to buy an option above or below the target price, depending on how they anticipate the asset is likely to perform.

CAN I CLOSE AN OPTION BEFORE THE EXPIRY TIME?

Once a trader invests in an option he/she has an opportunity to close the trade early. The window is available from three minutes after opening the trade, to until five minutes before the option’s expiry. Under certain market conditions the early closure feature may not be available it is dependent on volatility and liquidity.

WHAT ARE ‘IN THE MONEY’ AND ‘OUT OF THE MONEY’ EXPIRES?

An option which expires “in the money” is one which has met the trader’s predicted market condition as was stated prior to opening the trade (e.g target price). Equally, an option which expires “out of the money” is one that has not met the traders predicted conditions, also known at the moment of opening the trade.

WHAT HAPPENS IF MY OPTION EXPIRES AT THE TARGET PRICE?

If an option expires at the target price, which is possible for a High/Low or Boundary instruments, your initial investment amount will be returned to you by AlphaFX24 without any profits (or losses).

Alternative version: If an option expires at the target price, or “At the money, the trader will receive his invested amount back without any profit or losses added or deducted from it.

For example If a trader would open a trade for the amount of 100USD, in the case that the option expired “At the money” the customer’s balance will be returned with the 100 USD that he initially invested.

WHAT ARE THE MINIMUM AND MAXIMUM TRADE AMOUNTS FOR A SINGLE OPTION?

The minimum amount a trader can invest in a single option is usually $/€/£25 (short terms start as low as $/€/£10) or the local equivalent. The maximum amount a trader can invest in a single option is $/€/£3000 (depending on account types and personal limits) or the local equivalent.

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