Resolved: The most common Binary Options FAQ (with answers)


Many investors are not quite familiar with binary option but they are actually easier to use and play a crucial role in devising your investment strategy. In this article, we have described some common Binary Option FAQ that may help you get all the required information you need regarding Binary Options.

What are underlying assets?

Underlying assets are measured value of currency, commodity, and stock from which binary options are obtained. Most of the common assets include stocks, Indices, commodities (gold or silver) or currencies (USD, Gold etc.)

How to choose a Binary Options?

One of the most common Binary Options FAQ is related to making choice of binary options. Check below links for more details on how to choose Binary options.

Is binary option just one-time trade?

None of the binary options traders put a restriction on the number of trades. However, the open trade time is available for a specific period of time known as a window.

At which age can I start trading with Binary options?

Any person above the age of 18 years from any country should be eligible to work with the exceptions in those countries in which Binary Option is a completely banned. Most of the binary options websites require you to sign up and confirm your legal age before starting trading.

Is Binary options safe or a scam?

Binary options are safe and legit if trading is carried out under regulatory laws and conducted by a trusted broker.

In which countries Binary options are legit?

Almost all, except few countries where regulations/bans are imposed.

In which countries Binary Options banned?

Binary options are banned in only three countries namely Belgium, US, and Israel. US permits binary options trading by only through domestic and regulated trading only.

How to start investing with Binary options?

Follow simple questions mentioned below.

  1. Register with an online trading / broker of your choice from the recommended platforms.
  2. Choose the item/asset that you want to trade ( Currency choice of your country, in most cases it is either USD/EUR)
  3. Choose the amount of money you wish to predict on the asset. You can choose its rise by selecting Call (up) or Put (down) depending on what you predict will happen to the asset.
  4. Collect money/rewards/winnings after a period of time.
Can I open a demo account before investing real money?

Yes, you can open a free account on above trading platforms without investing a single penny. One of the popular platforms is Banc de Binary trading platform where you will get around $55,000 demo money for use.

What do you mean by call action and put action?

Call is the option you select if the value of the asset is going to increase. If you think that value will decrease then choose Put (down).

What do you mean by expiration time?

It is the time when the particular trading contract expires. It is the deciding time when you will be able to see the results of your investment.

What is time zone of expiry Time?

The expiration time is always mentioned in GMT (Greenwich Mean Time).

What do you mean by maximum winning percentage?

It is the percentage of the amount you will get on investment. For example: if the maximum winning percentage is 90% and if you invest $100, then you will get a net profit of $90.

Can I invest in Binary option with a Mobile phone?

Yes, you can start using binary options using a mobile device in some of the recommended responsive platforms mentioned above.

Are profits from Binary options taxable?

Taxation policies depend on the laws of your country. Therefore it is important to check the tax liabilities in your country.

What are the minimum and maximum trading limits with Binary options?

The permitted amount depends on the single trade ranging from 25$ up to $10,000. Also, it depends on your trading platforms.

What are ROI when Binary options expire with “Out of Money”?

You will lose investment when your binary option expires with Out of Money. In most cases a “Sell Option” is available, that means a trader can sell the position before expiration time at current prices.

What is “In the money” and “Out of Money”?

“In the money” means that you’re trading went in the right direction with profits while “Out of money” means that the trade resulted into a complete loss.

When to close a Binary options trade?

When you start with Binary options investment and start trading, you will have the option to select the time frame for which you wish to trade. Your trade ends after the expiration time is complete.

How long do I have to wait before getting my Binary options profits in my account?

After getting a successful message of Binary option, you need to wait for around 24-48 hours before getting the amount deposited to your account. Many websites take more than a week to deposit money, therefore you must refer to recommended platforms only.

Binary Options questions and answers will get you acquainted with the general process before planning to invest in binary option. Above are some of the common Binary Options FAQ that may clear out some of the underlying misconceptions about Binary Options.

  1. Avatar of John
    John says

    Well written informative article guys. looking for some more Faq and posts

  2. Avatar of Binary IQ
    Binary IQ says

    This is one of the top binary options sites I’ve checked out
    in many years.

  3. Avatar of Binary Brain Wave
    Binary Brain Wave says

    Let us feature a discussion some time concerning options and what we
    could do to make sure it is greater for any one.

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