Important Notes for Binary Options Transactions

Important notes for Binary Option transactions:

 

•  When you buy the Binary option, the Premium value is withdrawn from your account balance.

•  No commissions, markups or other charges are applicable for buying a binary option.

•  When the binary option position opens, it receives a unique id (Bet#). This number will be used in reports.

•  It is not possible to buy a binary option, if there is not enough money on the account balance or usable margin is insufficient.

•  There is a limit on the amount any trader can invest in Binary option at any given time. It is measured as the total amount of premium for all open binary options of the trader. This parameter is regulated by the Administrator.

•  It is not possible to buy a binary option on an instrument during a non-trading interval

•  It is not possible to buy a binary option when trading is closed

•  It is not possible to buy a binary option during a feed timeout

•  It is not possible to buy a binary option using a non-tradeable price (in case of the invalid external rates)

 

Expiration procedure:

•  When a binary option expires, the user receives his winning payout or consolation payout, depending on whether he wins or loses:

The winning payout is paid:

 *For Call(Up) – if the Bid rate at expiration is HIGHER than the strike rate (the Bid rate at the moment of placing the bet)

 *For Put(Down) – if the Bid rate at expiration is LOWER than the strike rate (the Bid rate at the moment of placing the bet)

 Note: Depending on the system configuration, either Bid, Ask or Middle rate is used in binary options trading.

• If the Bid rate at expiration is EQUAL to the strike rate, then trader can receive either consolation payout or premium paid for placing the bet, depending on the system configuration

•  The non-trading intervals have no effect on the option expiration process – the current rate is taken as the expiration rate

•  Closed trading doesn’t have any effect on the option expiration process – the current rate is taken as the expiration rate

•  Feed timeout doesn’t have any effect on the option expiration process – the last active rate is taken as the expiration rate

•  A non-tradable price in case of an invalid external rate has no effect on the option expiration process – the current rate is taken as the expiration rate.