What is Digital?
“Do you expect market growth but don’t know how much the price will grow? Never mind! With us, you can trade in the trend itself!”
Digital is, thanks to its simplicity, the most popular type of binary options. By trading this option, you speculate whether the given stock or commodity will grow or drop. If your decision is correct and the value of the stock after the option’s expiration is higher (or lower in case you were speculating on a drop) you will be credited with profit.
You are watching Microsoft stock. You are aware that the value of this stock has increased during the last few hours. Furthermore, you have read information that the company is planning to announce its income and everyone expects very good figures. Therefore, you decide to purchase binary options. Since you are speculating on the trend in which the chart will move (up or down), you choose Digital. You predict that the value of Microsoft stock will be higher in an hour than it is now. You place a $100 purchase order and wait for an hour until the option expires. After the expiration, you find out that your prediction was correct indeed and you will be credited with the profit equal to 83% of your trade. Therefore, your account will be credited with $183 (your original $100 plus $83 profit).
The advantage of this type of trading is that you know the potential profit and loss from the start. At the moment you make a decision whether or not to trade, you have a clear image of how much you can earn or lose by trading.
Variable returns with Zoomtrader
Quite possibly Zoomtraders most popular new feature is the variable return. What is this? Very simply, it is a form of insurance for traders who may not be 100% sure about which position to take.
Do you think an asset is going to increase in value? Are you not 100% sure about it? Before you place your call position you can now choose your risk level. All you have to do is click the drop down list next to where it says “return” on the chart and you can pick your potential profit and how much money you get back if your trade wasn’t successful.
The highest return rate doesn’t have any insurance against unsuccessful trades. Zoomtrader is proud to offer various levels of risk for traders to choose from. It’s just another tool that puts traders in control of their own results.
What is Touch?
“Are you convinced that the stock you have chosen will reach a certain price, but you don’t know when it is going to be? With the Touch type binary option, it will suffice for the chart to reach the determined limit and you make money!”
As the name suggests, this type of binary option is based on speculation whether the price of a stock or commodity will “touch” the predetermined limit. You just choose whether the stock will hit the limit below or above the current price.
You are watching the American Dow Jones index. You have discovered that on the first day of every month, there are exceptionally large fluctuations in the index before the market decides which direction to take.
You purchase the binary option and because you are just guessing the limit which the chart will reach, you pick the Touch type. You trade $100 in the possibility that the Dow Jones index will touch the determined limit above/below the current price. When this happens within an hour, before the option expires, you make 83% profit. Therefore, your account will be credited with $183 (your original $100 plus $83 profit). Sometimes, the chart touches the boundary earlier, before the option expires, and you may make a profit even after 15 minutes.
The price of an asset doesn’t have to only touch the limit; your trade is profitable even if the limit is surpassed.
The main advantage of the Touch type binary option is that it is sufficient for the chart to reach the determined limit only once and the trader gets his profit. This is also the difference between the Touch and the Digital option, as with the Digital type the stock value must be at precisely the right place when the option expires.
What is Range?
“Are your favourite titles stagnating and you are not sure which direction they will take? Never mind! Let them stay in their current price range, you can still make a profit!”
With the Range type binary option, you speculate whether the price of an asset will either remain in its range (thus will not grow or drop) or, on the contrary, will fluctuate heavily and finish outside the range. This option type is ideal in case you do not know the trend in which the asset is going to move, but you can anticipate whether it will be traded a lot or not.
You are watching the EUR/JPY currency pair. You have discovered that during the specific period this currency pair is not traded very often and its price is more or less at a standstill. You find out that during this period, no economic report that could affect the price is going to be published. Therefore, you assume that the EUR/JPY currency pair will not fluctuate noticeably during the period.
You can of course speculate the other way around on the possibility that the chart will finish outside the limits of the range.
Advantage of the Range type options is that you don’t have to know which direction the chart will move in. We either expect noticeable fluctuations outside the price range or, on the contrary, the stagnation of an asset with minimum fluctuations.
What is One Touch?
“Do you expect an upward trend, but you’re not quite sure how high the price could grow? Use the One Touch option, when it is enough if the price ended within a predetermined band!”
A trader knows that the stock price will grow steadily, but is concerned that the development will be punctuated by tiny price drops. In this case, it is best to choose the One Touch binary option. It is enough to keep the value of the asset in a predetermined range (or at least touch it) and you collect the profit.
We analysed the price of gold and expect stable price growth which may be accompanied by minor decreases. We choose the One Touch option and trade € 100 with the expectation that the graph will eventually reach the upper zone. If the graph at least touches our band we will collect profit of 75%, which is € 75.
Of course you may also speculate that the price will not even touch the predetermined range. In that case you just enter the No Touch command and speculate on the drop with the expectation that the price will move outside the range. The advantage of this option is that it covers any volatility and therefore it is enough to estimate the trend of the selected asset correctly – either growth or decline.
The table below summarizes the assets available for the One Touch trading and their Payouts:
The trading limitations for users of all groups (New, Beginner, Trader, Expert) are as follows:
Max. amount allowed to be open per asset – 500
Max. amount allowed to be open per option – 500
Max. open trades per asset – 5
Max. open trades per option – 5
What is Turbo?
“Are you one of the traders who want to know the outcome of their trade as soon as possible? Do you have a favourite asset, but cannot keep trading it as many times as you would like to? With our Turbo option you can get the profit/loss result within one minute! “
Classic binary options expire in at least half an hour. For the trader who specializes in one asset this may be too long to make a sufficient number of trades. Our platform also provides a special kind of option that expires every 1, 2 or 5 minutes. It behaves exactly the same as the Digital option with a classic speculation on the growth or decline.
You make a technical analysis of the current Euro – Dollar (EUR/USD) exchange rate and suddenly you discover indicators that the price is about to increase. You select a 1 minute option and trade € 100. Now you wait just one minute before the option expires and you will learn whether your prediction was correct. If you traded properly you will collect a profit of 73%, i.e. € 73 in the given case.
The minute option is suitable for aggressive traders who can detect instantaneous potential for growth (or decline) and want to trade immediately. Traders who trade daily can usually diversify their portfolio this way.
The table below summarizes the assets available for 60 second trading and their payouts.
|Asset||Trading hours (GMT)||Payout|
|EUR/USD||08:00 – 19:00||73%|
|GBP/USD||08:00 – 19:00||73%|
|AUD/USD||08:00 – 19:00||73%|
|Gold||08:00 – 19:00||73%|
|Crude||08:00 – 19:00||73%|
|Dow Jones||15:00 – 20:00||73%|
|S&P Futures||15:00 – 20:00||73%|
|DAX Futures||08:00 – 16:30||73%|
The users trading limitations for all groups of users (New, Beginner, Trader, Expert) are as follows:
Min.Time to wait between trades – 10 seconds
Max.Trades allowed – 15 in 30 minutes, and 25 in 60 minutes
Max.amount allowed – 350 in 30 minutes, and 650 in 60 minutes