August 21, 2017 08:17:00 GMT

Help & FAQ

Frequently Asked Questions and Basics

  • FAQ – General
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What are Binary Options?

Binary Options are an investment tool also known as a ‘fixed return’ or ‘digital options’. It can be used to trade underlying assets and Binary Option Brokers pay out pre-determined profits and losses, which are known to the investor even before their options are executed. In particular, when any of your binary options finishes in-the-money then, as an MaxOptions registered member, you will be paid a profit as high as 81% of your original deposit. In addition, successful results are solely dependent on price direction and not the size or magnitude of its movement. This means that if the value of your binary option finishes just one price increment in the correct direction at the expiry time, you will gain a profit. In contrast, if any of your binary options terminate out-of-the-money, then MaxOptions will pay you a refund, which may be 10% to 15% of your original deposit. Another benefit about trading with binary options is that you will always know your potential profits and losses for every investment you make even before your option is executed. In essence, you also have an inherent risk and money management strategy at your disposal when you trading using binary options.

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Binary Options vs. Traditional Options

MaxOptions offers binary options as defined above, which are different from the traditional ones presented by the Stock Exchanges. For example, traditional options possess longer expiry times, larger fluctuating yields and can be sold before their expiry times. In contrast, binary options have pre-determined yield and expiry times ranging from 30 seconds to one month. In addition, they cannot be sold before the selected expiry time elapses. MaxOptions introduces binary options that will allow their investors to sell them before their expiry times elapses.

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Rate Colours for the MaxOptions Trading Platform

Green indicates that the price of the underlying asset of a binary option is higher than its previous day’s closing value. In contrast, red implies that the current day’s price is lower than yesterday’s close.

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Can I trade from home?

Yes. You may trade from anywhere you choose, either with our desktop platform or our advanced mobile and tablet apps.

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Can I trade in my local currency?

Yes, you can. Our platform supports multi-currency transactions. If you cannot find your local currency on the list, please contact us and we will add it for you.

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Do I need to download and install any software for trading?

No. MaxOptions LiveTrader™ trading platform is completely web-based. This means that you simply need to open and fund an account with MaxOptions in order to start trading binary options immediately.

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Do I receive a confirmation for each transaction?

Every time you activate a binary options trade, you will see an on-screen message confirming that your trade has been placed. You also receive a confirmation email with the details and results of your trade once it expires.

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How long do I wait before I can sell my position?

Expiry times of your options are pre-determined and vary between 30 seconds to a month. You will know the exact time of expiry before you open the position.

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How many positions can I open?

You may open an unlimited number of positions. We do advise that you discuss your trading strategy with your account manager before you open any trade.

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How much tax do I have to pay for my profits?

Tax rules depend on your location, personal status, and many other factors. You should contact your local tax advisor for a more accurate consultation.

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How often are transactions updated in my account?

Transactions are updated in real time as your binary options trades are actioned. Once you have made a trade, you may view its details by clicking on ‘My Account’, then ‘My Portfolio’, followed by ‘History’. You will then be able to view past and current trades and full trade details.

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I do not have Internet connection; can I call my account manager and instruct him to trade for me?

We provide trading services for exclusive customers holding ‘Platinum Accounts’ only. Please contact your account manager to apply.

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What actions can I perform online and what online services are available?

MaxOptions allows you to trade binary options, review your account history, review trade history, and send customer service requests as well as make deposits and withdrawals quickly and easily.

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What do I need to access the MaxOptions trading platform?

All that is needed is a personal computer, laptop, or mobile device with access to the Internet.

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What is an expiry time?

This is the time period at which the lifetime of a binary option elapses. This is an important event because it determines whether you finish in-the-money (if your option successfully wins out its objective) or out-of-the-money (if it did not).

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What is an underlying asset?

Assets are the securities upon which binary options are constructed. Underlying assets can be stocks, commodities, Forex currency pairs, and trading indices. Please check our ‘Range of Markets’ page for the complete list.

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What is the investment limit?

The maximum amount that can be invested into a single binary option is 5000 USD or the currency equivalent. However, there is no limit to the number of binary options that you may exercise at any given time.

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What is the Time displayed on the MaxOptions Trading Platform?

The time zone is the Greenwich Mean Time (GMT).

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Where can I view the precise trading hours of each asset type?

You will find a detailed list of all of our available assets, which include a description, expiry times, symbols, and trading hours for each, in the asset index located here.

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What are your Trading Hours?

Forex operates 24 hours a day from Sunday 5:00pm EST to Friday 4:00pm EST and is the world’s most traded market. Each trading day, Forex commences in Sydney and then circulates around the world, passing through Tokyo, London, and New York. During this time, you have the opportunity to trade changes in currency movements. Think of Forex as a huge melting pot because no other institution reacts to current international events more than it does. In addition, Forex exists because of the constant need to trade foreign currencies against each other, hedge risks, and make international trade possible.

As currencies move against each other in Forex in real time, you may profit from these changes by correctly predicting which ones will increase in value against others. To do so, you must first purchase your chosen currency and then sell it later after it appreciates in value against the other currencies. You must be aware that the time required for your profit to be achieved may range from a very short period to a very long one.

The majority of Forex trades involve the biggest and most liquid currencies that are termed the ‘Majors’ and include the US Dollar (USD), Japanese Yen (Yen), Euro (EUR), British Pound (GBP), Swiss Franc (CHF), Canadian Dollar (CAD), and the Australian Dollar (AUD). More than 85% of all Forex currency transactions are centered on these major currency pairs, such as EUR/USD, USD/YEN, GBP/USD, USD/CHF, AUD/USD, and USD/CAD.

For a complete list of assets and their specific trading hours, please visit our ‘Range of Markets’ page.