Online Binary Option Trading 24Option.com
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Online Binary Option Trading 24Option.com

Posted By AmishaP on Fri, 25/06/2010 - 16:40 in

For those interested in trading binary options, 24Option.com offers a good selection of binary option types, as well as underlying assets on which to trade binaries.

 The following sections review some of the details about these option types and the underlying assets from which their values are derived.

Binary Option Types

The three primary types of binary options currently offered for trading by 24Option.com include:

High or Low Binary Options:

  • A High binary option provides a fixed payout or return if the market exceeds the chosen High point for a High binary at expiration. 
  • A Low Binary option provides a fixed return if the market trades below the given Low point at the option’s specified expiration date and time.

 One or No Touch Binary Options

  • With a One Touch binary option, the client will receive a payout if they correctly think the market will trade at or touch the chosen Touch level at any time prior to the option’s expiration date and time. 
  • With a No Touch option, they will get a payout if they correctly think the market will not touch the chosen No Touch level at any time prior to the option’s expiration date and time.

 

In or Out Boundary Binary Options:

 

  • An In Boundary binary option provides the client with a fixed return if the market closes between the boundary defined by upper and lower target prices on the chosen expiration date and time of the option.

 

  • An Out Boundary binary option provides the client with a fixed return if the market closes outside the range defined by upper and lower target prices on the chosen expiration date and time of the option.

 

Traders with registered and funded accounts at 24Option.com can readily purchase and liquidate these binary options during the appropriate trading hours.

 

Underlying Asset Types

 

24Option.com provides binary options on a number of underlying asset types that traders interested in financial or commodity markets may find interesting. According to the Asset Index posted on their website, these types currently include:

 

  • Indexes: The FTSE-100.
  • Commodities: Gold and silver.
  • Currency Pairs: EUR/USD, GBP/USD, EUR/JPY, USD/JPY, GBP/JPY and GBP/EUR.
  • Individual Stocks:  Vodafone and Lloyds.

 

Each specific underlying asset on which binary options are offered at 24Option.com has its own contract details and trading hours. Each of the major assets will be covered in greater detail in the sections listed below.

 

Indexes

 

The FTSE-100 London Stock Exchange Index

 

  • Asset Short Name: FTSE

 

  • Morningstar Symbol: UKX.In

 

  • Description: The FTSE 100 consists of a stock index weighted by market capitalization and which represents the performance of the United Kingdom’s top100 blue chip companies. Each company in the index goes through a rigorous screening process to determine the company’s size and liquidity, in order to qualify for inclusion in the index. The FTSE represents over 85% of the entire U.K. market capitalization and makes up the underlying asset for a number of investment products, such as derivatives, funds and exchange traded funds or ETFs. In addition, the FTSE accounts for 7.84% of the global equity market capitalization based on the FTSE All World Index, current through May of 2010. All FTSE constituents are traded on the London Stock Exchange’s Stock Exchange Electronic Trading Service or SETS.

 

  • Binary Trading Opportunity: Depending on your market view, an in or out boundary binary option trading strategy might be considered for trading this stock index.

 

  • Trading Hours for the FTSE 100 are (UK Time): Mon - Fri 08:00 - 16:30

 

Commodities

 

Gold

 

  • Asset Short Name: Gold

 

  • Morningstar Symbol: XAUUSDOCOMP.fx

 

  • Description: The price of a gold ounce as traded in the OTC forex market. Gold has been a means of storing wealth and a medium of exchange for millennia. The price of gold has been making new all-time highs recently in the face of the global financial crisis and provides the perfect underlying asset to trade binary options on.

 

  • Binary Trading Opportunity: While a one-touch binary option might be the most likely to wind up in the money, any of the binary option strategies may produce results if timed correctly with gold as the underlying asset.

 

  • Trading Hours (UK Time): Mon - Fri 08:00 - 22:00

 

Silver

 

  • Asset Short Name: Silver

 

  • Morningstar Symbol: XAGUSDOCOMP.fx

 

  • Description: The price of a silver ounce as traded in the OTC forex market. Silver is the second most popular precious metal after gold for trading purposes. In addition to its role as a means of storing wealth and as medium of exchange, silver also has a number of industrial uses which give the metal strategic as well as intrinsic value.

 

  • Binary Trading Opportunity: Silver also offers ample opportunities for trading binary options. Regardless of which binary options strategy the trader decides upon, the precious metals like silver lend themselves well to this type of option trading.  

 

  • Trading Hours (UK Time): Mon - Fri 08:00 - 22:00

 

Currency Pairs

 

Euro-U.S. Dollar

 

  • Asset Short Name: EUR/USD

 

  • Morningstar Symbol: USDEURCOMP.fx

 

  • Description: Exchange level between the Euro and US Dollar. The EUR/USD currency pair is the most heavily traded currency pair in the foreign exchange market and makes up over 37% of all forex transactions. The pair has recently gone through some very volatile trading due to the sovereign debt problems of some of the European Monetary Union members such as Greece, Portugal and Spain, to name just a few.

 

  • Binary Trading Opportunity: The EUR/USD currency pair has a history of orderly, sweeping moves, although the pair can be quite volatile during periods of global instability, thereby making for excellent binary option trading opportunities. An in/out boundary binary option could be a strategy to consider, as well as a one-touch binary option.

 

  • Trading Hours (UK Time): Mon - Fri 08:00 - 22:00

 

Pound Sterling-U.S. Dollar

 

  • Asset Short Name: GBP/USD

 

  • Morningstar Symbol: XAGUSDOCOMP.fx

 

  • Description: Exchange level between the British Pound and US Dollar. Nicknamed “Cable” because of the trading activity done over the Trans-Atlantic cable at the end of the nineteenth century, GBP/USD has a long history in the world of foreign exchange trading. The currency pair has a more volatile character than the EUR/USD and makes up over 15% of daily forex trading volume.

 

  • Binary Trading Opportunity: Because of the inherent volatility in this currency pair, a one-touch binary option strategy might offer the best opportunity for the conservative investor.
  • Trading Hours (UK Time): Mon - Fri 08:00 - 22:00

 

Euro-Japanese Yen

 

  • Asset Short Name: EUR/JPY

 

  • Morningstar Symbol: EURJPYCOMP.fx

 

  • Description: Exchange level between the Euro and Japanese Yen. This currency pair offers the investor the opportunity to speculate on the currency of the largest economy in the world by GDP, the Euro, versus that of the third largest world economy, the Japanese Yen. The Japanese Yen makes up the third most heavily traded currency in the forex market, after the U.S. Dollar and the Euro.

 

  • Binary Trading Opportunity: This currency pair has a medium level of volatility and also presents good opportunities for binary option strategies.

 

  • Trading Hours (UK Time): Mon - Fri 08:00 - 22:00

 

U.S. Dollar-Japanese Yen

 

  • Asset Short Name: USD/JPY

 

  • Morningstar Symbol: USDJPYCOMP.fx

 

  • Description: Exchange level between the US Dollar and Japanese Yen. The second most traded currency pair, the USD/JPY has had a long history of trading in the forex market. The currency pair makes up over 17% of total daily forex volume and has its own particular trading style.

 

  • Binary Trading Opportunity:  The pair trades with less volatility than other currency pairs, although USD/JPY can move very fast in either or both directions when world events or economic news impact the rate. This can make out boundary binaries especially attractive.

 

  • Trading Hours (UK Time): Mon - Fri 08:00 - 22:00

 

Pound Sterling-Japanese Yen

 

  • Asset Short Name: GBP/JPY

 

  • Morningstar Symbol: GBPJPYCOMP.fx

 

  • Description: Exchange level between the British Pound and Japanese Yen. A major cross-rate, the GBP/JPY combination gives the investor the opportunity to speculate on the prospects of the British economy, which ranks sixth in the world in the size of its GDP, and Japan, which ranks number three in the world by GDP.

 

  • Binary Trading Opportunity: The pair combines the volatility of the British Pound with the usually less volatile Japanese Yen and can also yield profitable binary option trades.

 

  • Trading Hours (UK Time): Mon - Fri 08:00 - 22:00

 

Pound Sterling-Euro

 

  • Asset Short Name: GBP/EUR

 

  • Morningstar Symbol: GBPEURCOMP.fx

 

  • Description: Exchange level between the British Pound Sterling and the Euro. A benchmark of the European currency pairs, the Sterling-Euro rate is closely followed and is a perfect combination of currencies for trading binary options. The Pound has strengthened considerably against continental currencies since devaluing and removing itself from the European Exchange Rate Mechanism in 1992.

 

  • Binary Trading Opportunity: An in boundary binary option strategy might be considered to take advantage of an established trading range in this currency pair.

 

  • Trading Hours (UK Time): Mon - Fri 08:00 - 22:00

 

Individual Stocks

 

Vodafone Group, plc.

 

  • Asset Short Name: VOD

 

  • Morningstar Symbol: VOD.ln

 

  • Description: Vodafone is the world's largest mobile telecommunication network company operating in more than 30 countries worldwide. Vodafone is quoted on the London Stock Exchange and is a constituent of the FTSE-100.

 

  • Binary Trading Opportunity: A high/low binary option strategy might be the best strategy to take advantage of the higher volatilities involved in equity options. In addition, listed calls and puts on the stock as well as the stock itself could be traded against a binary option position.

 

  • Trading Hours (UK Time): Mon - Fri 08:00 - 22:00

 

Lloyds Banking Group, plc.

 

  • Asset Short Name: LLOY

 

  • Morningstar Symbol: LL0Y/L.ch

 

  • Description: Lloyds Banking Group plc provides banking and financial services in the United Kingdom, the United States, and Europe. The company is quoted on the London Stock Exchange.

 

  • Binary Trading Opportunity: Lloyds’ stock can provide a good underlying instrument for trading a high/low binary option strategy on.

 

  • Trading Hours (UK Time): Mon - Fri 08:00 - 16:30

 

Overall Impression of Asset and Binary Option Type Range at 24Option.com

 

The general impression provided by the range of underlying asset and binary option types provided by 24Option.com is overall a positive one. Also, the range of currency pairs provided offers a special opportunity for forex traders looking to use binary options to avoid stop loss order slippage.

 

Furthermore, the company will probably be increasing their binary option product range over time, and so this will add to the attractiveness of having an account with the company.