Binary OptionsBinary Options were pioneered by IG Markets in 2003 as a means of greatly enhancing the leverage and possible returns from holding a market view. Combining the tight each-way pricing and movement of futures with the limited risk of options, they have proved extremely popular with short-term traders, and guarantee a large degree of price movement even on a quiet, range-bound trading day. ExamplesThe idea is simple: a Binary Option settles at 100 if a named event occurs, or zero if it does not. For example, the 'Germany 30 to finish up on the day' option will settle at 100 if the underlying index closes the day unchanged or above the closing level of the previous day; otherwise, it settles at zero. The market swings between zero and 100 as the event in question becomes more or less likely. Most Binary Options are based on the daily movement of a currency or index. For more popular markets, intraday or even hourly expiries are possible. Additionally, some Binary Options are based on whether the market touches a particular point at any time during the given period. For example, 'FTSE to touch 6000' makes up at 100 if the FTSE touches that level at any time during the trading day, or zero if it does not. Product rangeIG Markets quotes Binary Options on over 20 different markets, including five major currencies, gold, crude oil and a range of indices. No other company offers such an extensive range. |
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