Binaries trading
Make the most of short-term market movements with our two types of binaries: IG binaries and sprint markets
What are the risks?
The fast-moving nature of binaries and sprints provides the possibility of short-term gains, alongside any potential losses. Although they are limited risk, you should be aware that there is still the potential to make substantial losses as well as gains.
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Example binaries
With a FTSE 100 UP binary you are being asked whether you think the FTSE 100 will be above 6444.89 at the close of the session.
If you agree you would 'buy' this binary, if you disagree you would 'sell' this binary.
The price you pay reflects the likelihood of the event happening as set by our trading desk based on the behaviour of the underlying market and the time remaining until expiry. Each binary is priced between 0 and 100; the closer you get to expiry, the closer the price will move to either 0 or 100.
In this example the binary price is 86.2/89.5. Here, you would ‘buy’ at 89.5 or ‘sell’ at 86.2.
However, binaries magnify very small movements in the underlying market. A sharp tick close to expiry could see the binary price move dramatically.
For example, if the underlying market price was at 6458 just five minutes before the expiry of a FTSE 100—UP [>6444.89] binary, the price is likely to be close to 100 as the chance of it expiring above 6444.89 is quite high. However, if the FTSE suddenly kicks down to 6443 and the binary expires below 6444.89, the price will instantly settle at 0 – potentially a large swing.