In this section we have collected the answers to the commonly occurring questions asked by the beginning traders. If your question is beyond the scope of below mentioned issues, please contact the specialists of the company. You can find all the available contacts in the relevant section of the website.
What is binary options?
Binary option (digital option, “all or nothing” option or option with the fixed profit) is the option that depending on the agreed condition at a defined time either provides the fixed amount of profit or nothing. Usually, it means whether the market price on the basic asset is higher (or lower) than the definite level. The fixed payment is done in case of the option gain irrespective of the price changed degree (to what extend it is higher or lower).
Binary options allow to know the exact amount of payment and possible risks before concluding the contract which gives an opportunity to manage more trading operations much easier (Wikipedia).
How does one open an account and start trading?
In order to open an account in «First Binary Option Service», follow this link and fill in the form on the page of registration. Please, get acquainted with the Agreement here.
It is necessary to indicate the real personal data while registering in order to avoid further problems during identification. After you finish filling in the form you will receive a letter to the indicated e-mail address with the link to activate your Client’s profile. To start working with the option contracts you need to deposit funds to your trading account using the available electronic payment systems.
What is the working schedule of the Company?
The Company's trading servers work and provide quotes from 09 p.m. GMT, Sunday till 09 p.m. GMT, Friday. In all other situations the Company will inform you in advance via newsletter on your e-mail and publishing an announcement on its official website. The option contracts of the New York Stock Exchange (CFD) are available for trading at its working hours.
I have lost the access to Client’s profile. What should I do?
In case you have lost the access to your Client’s profile in Client’s cabinet or the access to the e-mail address indicated during registration you need to contact technical support department immediately and block your trading account. In order to restore the access to your Client’s profile later on you need to make a scanned copy of the document that can prove your identity (regular or international passport, ID-Card) and follow the instructions that you will receive from technical support department specialists firmly.
What are the option contracts of “High-Low” class?
The option contracts of “High-Low” class are the contracts the obligatory execution of which is the excess or undervaluation of the rate of particular trading instrument regarding the level of entrance into the contract. In other words, in order to execute the contract “Call” it is necessary that at the moment of expiry of the contract the rate of the selected trading instrument will be higher than the one that existed at the moment of contract conclusion. In order to execute the contract “Put” the fulfillment of the opposite condition is necessary - at the moment of expiry of the contract the rate of the selected trading instrument must be lower than the one that existed at the moment of contract conclusion.
At what price the option contracts are opened and closed?
In the trading platform of “First Binary Option Service” for opening and closing of option contracts the price “Lost” is used which can be calculated by the following formula:
Рlost = Pbid +(Pask-Pbid)/2 ,where
Plost – price, which is used for trading operations execution and for opening and closing of option contracts operations.
Pbid – price Bid, that is provided by the service.
Pask – Price Ask, that is provided by the service.
What time is displayed in the trading platform?
The time that is installed in the trading server of the company is displayed in the trading platform; it is equivalent to GMT +3.
What payment will I receive for contract execution?
The amount of payment which is paid in case of positive option contract execution is identified in the appropriate column in the trading platform. It depends on the correlation of total volumes of funds of the Company’s clients invested in the contracts “Call” and “Put”. The more preponderance to one of the sides is, the less is the amount of payment. In case of decrease of general (potential) market liquidity provided by our liquidity providers and necessary to respect the payment ratios on these or those contracts, the company makes payments within the limits of current liquidity at the moment of conducting a transaction. Anyway, for now the amount of payment cannot be more than 80% of the margin and cannot be less than 60%. In case the contract hasn’t received the positive execution at the time of the its expiry you will receive the compensation up to 15% from the amount invested into the contract (margin or volume of your operation).
The price at the moment of closing of the contract is turned out to be the same as for the moment of its opening. Will I get the payment?
In case if the price at the moment of closing is turned out to be the same as the opening one the contract is considered to be unexecuted. You will receive only the compensation in amount of up to 15% from margin.
The example of profit or loss calculation for option contract of “High-Low” class.
For example, you open a trading account in dollars and start to trade. You choose the following trading instrument – GBP/USD, select the expiry period of the contract and enter into the contract “Call” with the volume 100 USD, opening price at 1,5580. At the moment you press the button “Call” the terminal identifies the payment amount of 80% and the margin amount of 100 USD is frozen on your trading account. If at the moment of closing of the option contract on GBP/USD the price is 1,5581 or higher, the contract will be considered as executed. In this case the frozen margin on your trading account will be returned to balance and on your trading account will be credited with the additional payment in amount of 80% x 100 USD = 80 USD. In other words you will earn 80 USD on the option contract execution with the enumerated parameters. If at the moment of closing of the option contract on GBP/USD the price is 1,5580 or lower, the contract will be considered unexecuted. You will lose the margin amount completely – 100 USD, but you will get the compensation in amount of 15% from the lost sum to your trading account – 15 USD. In this case, you lose 85 USD in their pure form.
What is indicated in the tab “Volume” in the trading platform?
This tab indicates the correlation of volumes on each presented trading instrument for “Call” and “Put” contracts. All the contracts existing in the Company with any expiration time are considered during the chart formation. The correlation of “Call” and “Put” contracts influences the possible amount of profit for newly opened contracts.
What time is indicated in the time clock of countdown in the tab “Order management” of trading platform?
The time left till the nearest expiry of contract period is displayed in the tab “Order management”, it means that the time clock is restarted every 5 minutes.
What time frame is displayed in quotes chart in the trading platform?
At this moment the quotes chart displays the fluctuation of prices and the current price for the selected instrument in the time frame of 15 minutes.
At the moment of the button pressing (“Call” or “Put”) I saw one price in the trading platform, but the contract was concluded at another price. Why did it happen?
The Company uses the technology of quotation “Market execution”, which means that your request to open the option contract will be processed not by the price you see on the Company’s server at the moment of the button pressing and the one that is indicated in your trading platform, but by the price that will be on the server at the moment when the server starts processing your request. Thus, the company avoids “requots” but there appears “slippages”. In the atmosphere of normal market conditions slipping cannot be higher than two average amounts of spread of the particular trading instrument.
How does one use trading platform?
The trading platform is in the Client’s cabinet here.
At the top of the platform there are tabs for choosing the class of option contracts (for now only “High-Low” class option contracts are available). Using the tab “Instrument” you choose the trading instrument on which you would like to conclude option contract. Then, in the field “Expiration time” you choose the one, in the field “Volume” you enter the sum of the contract. This sum will be fixed by the Company as margin for option contract and it should not be higher than the one indicated in the column “Free margin”.
The timer in the platform shows the time left till the expiry of the contract within 5 minutes, it doesn’t show the time left till the expiry of the contract if you have chosen more than 5 -minutes period. Then you need to analyze the situation on the chart in the trading platform and come to a decision choosing the appropriate button.
If you think that the rate will grow you should press the button “Call”, after that the option contract of the corresponding type will be opened and appeared in the column “Current Operations” in your trading platform. If you think that the rate will fall you should press the button “Put”. The payment that you will receive in case of positive closure of the option contract in percentage correlation to margin (“Volume”) will be displayed in the appropriate window of the trading platform. In case of negative closure of the option contract you will receive the compensation of 15% from the invested margin to the contract. The volumes’ display in the trading platform influences the amount of payment for option contracts on the trading instrument. The total amount of funds invested for the particular trading instrument to “Call” and “Put” contracts for all the possible expiration time of contracts is displayed in the trading platform.
Can one open a new trading account?
The Company doesn’t allow to open several trading accounts in one Client’s profile. Moreover, one physical or legal person is not persuaded to have more than one client’s profile. Thus, you may have only one Client’s profile and one trading account.
How to deposit the trading account?
In order to deposit your trading account you need to have an account in any of the offered by the Company payment systems. To deposit your account, enter your Client’s profile in the Client’s cabinet and follow the link. Then, choose the payment system and follow the instructions.
How to withdraw funds from trading account?
The funds can be withdrawn to the same purse and in the same currency which was used for deposit. This purse will be automatically attached to your profile in the Client’s cabinet. Enter your Client’s profile in the client’s cabinet and follow the link. Then, choose the payment system which was used for deposit and follow the instructions. You cannot withdraw more than the amount indicated in the tab “Free margin” in the trading platform.
I have requested a withdrawal, but the request was cancelled. Why could it happen?
If there are some violations of the Company’s agreement and in accordance with Anti-Money Laundering Policy demands, the Company has the right to request additional information during withdrawal process. In this case the manager of the financial department will send you the letter to the e-mail indicated during registration with the information about the cancelled withdrawal request and the necessary information to solve the matter.
I have sent a withdrawal request. When will I receive the funds to my purse?
According to the Company’s agreement the withdrawal processing may take up to three working days.