Land Rover BAR
As official partner of Land Rover BAR we’re backing Sir Ben Ainslie’s team to bring the America’s Cup home.
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.
You can trade binaries on a range of popular FX pairs, indices and commodities.
The settlement price is the reference price for binaries, which determines whether a specified event has occurred. The outcome of a binary (whether you win or lose) is determined by whether the settlement price is higher or lower than your chosen strike price, or within a specied range, when the binary expires.
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.
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.
We offer our full advanced charting package, with over 80 technical indicators and drawing tools as well as pattern recognition.
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.
You can see the status of all of your open binaries under the 'Positions' tab within the binaries window on the platform.
You can do this by selecting the live streaming buy and sell prices provided next to the strike price.
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.
Binaries are accessed via an icon in the main toolbar or via an additional option within the product library.
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.
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 and the later expiry will be shown as D2.
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.
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.
The maximum amount at risk is displayed on the order ticket and 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.
To view a chart displaying the binary trade 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 trade and its direction, the strike price, binary expiry and current and historical settlement price.
Yes, binaries are available on our demo account.
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.
If you're new to CMC Markets, you can apply for a live CFD account online to trade binaries. 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.
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 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.