FAQ on Binary Options & Expert Advisor
1. What is a Binary Options?
It is one of the options wherein you get a fixed payout on your trade placed at that particular time. If the trade is a winner you make profits or else you make losses.
2. What is the difference between forex trading and binary trading?
With the forex market, every time you enter into a trade you risk the entire amount of money in your trading account, while with binary options your risk is always limited to the amount you committed to that specific trade. Also, while trading forex, there is no time limit to the trade. The trades can go on for minutes or even weeks. In Binary options, you know the time limit on the trade when you enter the trade.
3. What are the different momentums while placing the trades and how do we analyze this?
The trades with shorter duration like anything less than an hour, need detecting momentum changes and the trades with longer duration which are an hour and more needs attention to market sentiment.
4. What are the uses of binary options?
Binary options can be used as a separate form of investment and trading. It can also be used to offset or hedge the risks that are involved when you enter into a forex trade. When you are long on EURUSD, you can hedge that risk by going short on EURUSD through binary options.
5. What is the timeframe for a Binary Options Trade?
At NoaFX, we cater to the requirements of a wide range of traders ranging from the scalpers to the positional traders. That is why we have a variety of time period starting from 1 minute to a week.
6. What is the margin that I should keep while trading the binary options?
There is absolutely no margin requirement. It is all cash. The risk the trader takes is only the amount chosen by the trader when entering the trade.
7. Is your Binary Options Platform integrated with my MT4 account?
The binary options trades can be placed from your existing MT4 platform and you can trade all instruments, such as currency pairs, Indices, commodities, stocks etc. However, to be able to place Binary Options trades from your existing platform, you'll need to enable the Binary Options EA plugin in your MT4. Here are the step-by-step instructions on how to enable Binary Options EA plugin in the MT4 platform
8. How are the returns if I choose the binary options?
Please note that the BO payout will vary based on market conditions and volatility. The payout is likely to be low during low activity periods of the day when all major markets are closed and hence volatility is low, and it will be high during London and New York market times. However, we as a broker do not have any control over the payout, so it is always good for the traders to see the payout displayed in the platform before the trade is placed.
9. What is the minimum and maximum amount of investment per trade?
At NoaFX, the minimum limit for placing a binary options trade is $1 and the maximum investment amount per trade is $1000.
10. Do I need to register for this? How do I go about it?
Yes, you do need to register if you want to open a binary options account. Please click here to download binary options account opening guide.
11. How to manage the risks?
One of the biggest advantages of options trading is that you know the risk and the returns when you place a trade. This is not available in any other kind of trading as the risks can be endless unless you have strict control over your trades and your emotions. You can manage the risks by setting your investment amount per trade at a level that you are comfortable with and you can never lose more than your investment amount.
12. What is Up/Down bet type in Binary Options?
The Up/Down bet type allows a trader to bet on the chosen currency pair's direction within the selected time frame. At the time of entering a trade, the trader may bet that the value of the pair will either increase (Up) or decrease (Down) within the selected time frame. At the end of the time frame, if the currency pair has moved in the same direction as the trader's bet, the trade is a win.
13. What is Odd/Even bet type in BO?
In Binary Options, one can also trade on the last digit of the currency value either going ODD or EVEN within a selected time frame. If the last digit of the number is 0,2,4,6 or 8 then it is Even and if it is 1,3,5,7 or 9 it is Odd.
14. What is Binary Options Expert Advisor?
By incorporating Binary Options trading into the NoaFX MT4 platform, traders can now utilize the most popular feature of MT4 Ã¢â‚¬â€œ Expert Advisors (EAs). Binary Options EAs allow traders to automate their Binary Options strategies thus removing emotions from trading decisions.
15. How is Binary Options different from Binary Options EA?
Unlike the previous Binary Options platform that required two different platforms for trading Binaries, the newer and upgraded version of Binary Options EA has integrated Binary Options into a single trading platform, thus requiring the installation of only MT4 Platform and the EA plugin.
What more, Binary Options EA lets you to place multiple orders simultaneously making trading a lot faster. Also, unlike the older Binary Options platform, the upgraded BO EA allows you to choose between Market Order & Pending Order.
16. Can I upgrade my platform to Binary Options EA?
Yes, if you are already using the older Binary Options platform, you can easily switch to the new Binary Options EA.
17. How can I upgrade my existing BO platform to the new Binary Options EA?
In order to upgrade to the new Binary Options EA, you will be required to install EA plugin into your device. Existing users can either access the EA plugin via their Client Area or could write to us at [email protected] New users, on the other hand, would first need to register for a New Account in order to install the EA plugin into their trading device.