Binaries

Questions

Answers

  • What are binaries?

    Binaries are a form of limited-risk trading that allow you to speculate on whether or not an event will occur within or at the end of a set timeframe. The only possible outcomes are yes’ and ‘no’. If you think the event will occur, you buy the binary. If you think the event will not occur, you sell the binary. 

  • Which instruments can I trade with binaries?

    You can trade binaries on a range of popular FX pairs, indices and commodities.

  • Can I set stop losses or take profits on my binary trades?

    No, with binaries your potential profit or loss is displayed on the order ticket before you enter into your trade. You can’t set stop-loss or take-profit orders, and it doesn’t matter how much above or below the original price the instrument's price is at the end of the binary expiry.

  • How are binaries priced?

    Binaries are priced between 0-100. If the price is closer to 100 then the event is more likely to occur, while if the price is closer to 0 then the event is less likely to occur. The outcome of a binary, that is whether or not a specified event has occurred, is determined against the reference price, known as the settlement price.

  • Can I access charts when trading binaries on the Next Generation platform?

    We offer our full advanced charting package, with over 80 technical indicators and drawing tools as well as pattern recognition.

  • Can I see a history of my past binaries trades?

    The history tab will display any closed or settled binary trades in chronological order, and separated by date. It will display the buy/sell price, units, settlement price, buy/sell time, binary expiry, binary type, and profit or loss.

  • How can I check the status of my open binaries trades?

    You can see the status of all of your open binaries under the 'Positions' tab within the binaries window on the platform.

  • How can I close or reduce an existing binaries trade?

    To close or reduce a trade, select the red ‘Close Out’ X to bring up an order ticket. To close ‘All’ select ‘X’ on the aggregate row, or to close an individual trade select ‘X’ on the individual position row. To partially close a trade, you will need to reduce the ‘Size’ of the trade. The wording at the bottom of the ticket will change to indicate that you are reducing your trade rather than closing it.

  • Where can I access binaries on the Next Generation platform?

    Binaries are accessed via an icon in the main toolbar or via an additional option within the product library.

  • Do I have to deposit money to open an account?

    You don't need to deposit any funds to open an account with CMC Markets but you will need to make a deposit of at least the minimum stake before you can place your first binary trade.

  • How secure is the web-based platform?

    We use the internationally accepted security system SSL (Secure Sockets Layer) for all account functionalities, including fund deposits and withdrawals. This system is automatic and you will receive an instant notification if your browser does not support it.

  • What timeframes/expiries can I trade binaries over?

    We offer a range of timeframes, from five minutes to weekly. We offer two daily binary expiries for certain instruments. The earlier expiry will be displayed as D1 (for example FX expires at 2AM AEDT time), while the later expiry will be shown as D2 (for example FX expires at 7am AEDT time). Note: expiry times may vary.

  • Where do the prices come from that I see on the platform?

    The prices for CMC Markets products are generated in real time, electronically, by our platform. While these prices take into account various prices from various sources, the prices at which you open and close trades are exclusive to the CMC Markets platform and are not the same as prices you may see elsewhere.

  • What happens when I close my binary position early or when the binary expires?

    When you close a binary position early, an amount equal to your binary amount plus or minus any realised profit or loss will be credited back into your account.

  • How can I add to an existing binary position?

    You can do this by selecting the live streaming buy and sell prices provided next to the strike price.

  • How can I close or reduce an existing binaries position?

    To close or reduce a position, select the red ‘Close Out’ X to bring up an order ticket. To close ‘All’ select ‘X’ on the aggregate row, or to close an individual trade select ‘X’ on the individual position row. To partially close a position, you will need to reduce the ‘Size’ of the trade. The wording at the bottom of the ticket will change to indicate that you are reducing your position rather than closing it.

  • Are there any changes to timeframes and maximum trade sizes outside of normal trading hours?

    Yes, our maximum trade sizes are reduced during our 'out of hours' session, while the minimum timeframes that we offer increase.

  • How do binaries compare to CFDs for tax purposes?

    Binaries are subject to the same tax rules as the account on which they are traded. If they are traded on a CFD account, they will be subjected to the same tax rules as CFD trades.

  • Who regulates binaries?

    Our binary product (including Countdowns) is classified as a CFD and is regulated by the Australian Securities and Investments Commission (ASIC).

  • Where can I access binaries?

    Existing clients can access binaries from the top navigation toolbar in the web-based version of the Next Generation trading platform, or via the product library.

    On our mobile apps, binaries can be accessed via the product library from the platform menu. 

  • What is the settlement price?

    The settlement price is the reference price for binaries and Countdowns, which determines whether a specified event has occurred. The outcome of a binary (and whether you win or lose) is determined by whether the settlement price is higher or lower than your chosen strike price when the binary expires.

  • What is a strike price?

    The strike price is the selected price at which a binary is subject to settlement against. So, if you buy a Ladder binary on the US 30, the settlement price will need to be above or equal to the strike price at the end of the binary expiry to make a profit.

  • What are the different types of binaries I can trade?

    We offer four types of binaries:

    Ladders: Ladders ask whether the settlement price will be at or above a specified strike price at the end of the binary expiry. Choose from a number of pre-determined strike prices. If at the binary expiry the settlement price is at or above your selected strike price then the binary will settle at 100. All binaries have to settle at either 0 or 100 and unlike Countdowns, there can never be an outcome that results in a draw.

    Up/Down: Up/Down binaries ask whether the settlement price will be at or above the previous period’s close at the end of the binary expiry. Up/Downs are a type of Ladder and the event outcome is determined in the same way. Generally only one strike price is listed for an Up/Down and it is set to the underlying product’s previous closing level, which will vary depending on the timeframe and product. If at the end of the binary expiry the settlement price is at or above the strike price (the previous period's close) then the binary settles at 100.

    One Touch: One-Touch binaries ask whether the settlement price of a binary will reach a specific strike price before or at the end of the binary expiry. For example, will the US 30 reach 17,600 at or before 9pm? The settlement price only has to touch the strike price once for the binary to immediately settle at 100. If the strike price is not touched before or at the end the binary expiry, it will settle at 0.

    Range: Range binaries ask whether the settlement price will be within a specified range at the end of the binary expiry. In other words, will the US 30 settlement price finish between 17,600 and 17,700 at 9pm? For the outcome to be a ‘yes’ and the binary to settle at 100, the settlement price has to finish at or above the lower strike price and below the upper strike price. If the settlement price is outside the 'range', the outcome will be 'no' and the binary will settle at 0.

    As with Ladders and Up/Downs, if the settlement price at the end of the binary expiry is equal to the specified strike price, the binary settles as if the market expired above that strike, so there is always a ‘yes’ or ‘no’ result. So if the settlement price at the end of the binary expiry is equal to the lower strike price of a range, the binary settles at 100. If the settlement price at the end of the binary expiry is equal to the upper strike then the market settles as if it was above that strike level, which would result in the binary settling at 0.

  • What is the maximum amount at risk when I place a binaries trade?

    The maximum amount at risk will be deducted from the cash in your account at the point when the binary is opened. Therefore, you cannot lose more than your initial investment. 

  • Can I open a long and short open position on the same binary?

    Binary positions are netted by default (per product, type, timeframe and strike price); therefore it’s not possible to hold both a long and short open position in the same binary type, expiry and strike price. 

  • How can I see a chart for my binaries position?

    To view a chart displaying the binary position details, select a strike price area within the positions window. This will load a chart displaying details about that trade, including a trade triangle which shows where you have entered the position and its direction, the strike price, binary expiry and current and historical settlement price.

  • Are my trades subject to manual execution?

    No. We offer 100% automated execution. 

  • How can I apply for a Binary account?

    If you're new to CMC Markets, you can apply for a live CFD account – just complete our online application form.. When your application has been approved and you’ve funded your account, you will be able to place your first binary trade within the Next Generation platform through your CFD account.

    If you're already a CMC Markets client, just log in to the platform and choose 'Binaries' from the top navigation toolbar.

  • How can I apply for a Binary account?

    If you're new to CMC Markets, you can apply for a live CFD account – just complete our online application form.. When your application has been approved and you’ve funded your account, you will be able to place your first binary trade within the Next Generation platform through your CFD account.

    If you're already a CMC Markets client, just log in to the platform and choose 'Binaries' from the top navigation toolbar.

  • Do binaries only settle at 0 or 100?

    Binaries have a buy and sell price, which will always be set between 0 and 100. If the event occurs, the binary settles at 100 and if the event does not occur, it settles at 0. Your profit or loss is the difference between 100 or 0 (depending on whether you have won or lost) and the level at which you bought or sold your binary. Generally when entering a binary trade, if the price is closer to 100 the event is more likely to occur, while if the price is closer to 0 it is less likely to occur.

  • Can I close my binary trade ahead of expiry?

    Binary trades may be closed partially or fully prior to expiry. There are a couple of exceptions, however:

    • Binary trades can only be closed during binary market hours
    • Binary trades cannot be closed out during the ‘pre-close period’

  • What is the pre-close period?

    Binaries will become non-tradeable a short time before the end of the expiry, or the pre-close period. This period will vary between 30 seconds and two minutes, depending on the binary expiry and is displayed in the product overview, which is accessible in the top-left of the binary module. 

  • Can I open a long and short open trade on the same binary?

    Binary trades are netted by default (per product, type, timeframe and strike price); therefore it’s not possible to hold both a long and short open trade in the same binary type, expiry and strike price.

  • Can I practise trading binaries?

    Yes, binaries are available on our demo account.

  • Do I need to download software to start trading binaries?

    The CMC Markets trading platform is web-based, so there is no need to download any software and you can access the platform from any computer with one of the common web browsers. We also provide free mobile trading apps for iPhone, iPad and Android™ – just search for 'CMC Markets' in your relevant app store.

  • How can I contact CMC Markets if I have further questions?

    Our Client Management team is here to help if you have any questions.

    Email: support@cmcmarkets.com.au Tel: 1300 303 888

    Live chat: available under the 'Support' menu when logged into the platform

    We are available 24 hours a day, five days a week, from Monday morning to Saturday morning.

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