Binary Trading eBook

7/31/2019 Binary Trading eBook

http://slidepdf.com/reader/full/binary-trading-ebook 1/19



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Table of Contents

About GCM Binary…………………..……………………………………………………………………

What are Binary Options?.………………………………………………………...…………………….

What is One-Touch Trading? ..………………………….……………….………………………

What is High / Low Trading? ..………………………….…………………….…….……………

Account Opening..…………………………………..………………………………..…………………..

Demo Account Registration…….…………..……………………………..……………………..

Live Account Registration…………………..…………………………………………………….

Initial Deposit…………………………………………...………………………………………….

Trading a Binary Option………………………………………………………….………………………

Accessing Your Trading Account.………………………………………………….……………Choose Your Instrument………………………………..……………………..……………...….

Find Your Market…………………………………………………………………….…………….

Complete Your Trade…………………………………………………………………..…………

Close Your Binary Option……………………………………………………………...……..…1

Binary Option Trade Box Explained ............................................................................................1

My Open Trades .........................................................................................................................1

Trade History ..............................................................................................................................1

Option Outcomes and Returns....................................................................................................1

‘In the Money’ Expiry .........................................................................................................1

‘Out of the Money’ Expiry...................................................................................................1

‘At the Money’ Expiry ........................................................................................................1



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About GCM Binary

GCM Binary is the Binary Options trading site for Gallant Capital Markets Ltd. and is the veryfirst Forex Company authorized and regulated by the Financial Services Commission (“FSC”)

under the Securities and Investment Business Act, 2010 (“SIBA”) in the British Virgin Islands(“BVI”).

GCM Binary utilizes the easiest and most secure Binary Options trading platform which can beaccessed directly from your web browser without having to download software. Trading at GCMBinary is suitable for both advanced and novice users, through a very carefully designed, easy-to-use interface.

Gallant is owned and managed by a seasoned group of professionals, specializing in the fieldsof Financial Options, Commodities, Derivatives, Stocks, Forex trading, online marketing, andsoftware research and development. By utilizing our powerful trading platform, traders gainaccess to our proprietary Straight Through Processing technology, excellent liquidity, world-class customer service, and a broad suite of advanced trading tools.

At Gallant, we understand that we are only successful when our customers are successful. It iswhy we guarantee all of our clients’ fair and transparent execution and pricing as well as accessto the best-in-class trading functionality demanded by interbank traders.



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What are Binary Options?

The IDEAL INVESTMENT TOOL - Binary Options are the progressive alternative to traditionaltrading instruments, offering a simple ‘Up’ or ‘Down’ proposition on popular financial markets

including Currencies, Stocks, Commodities or Indices in various time periods. Based on asimple Up / Down proposition, Binary trading creates a simple, transparent and intuitive way totrade the global markets with low collateral. The potential payout and initial investment are fullyvisible before the trade is placed, making this the smart choice for countless traders.

Binary Options are named as such because they only have two possible outcomes: either theforecast is correct or it is not. As a trader, you decide how much you want to invest in the Optioas there is no fixed price for the Option, just fixed return.

Each option has both a start time and end time to trading, followed by an expiration time when

the option expires and a gain or loss is realized. There is no risk as you are not buying theasset, just predicting whether the price will rise or fall.

Binary Options are simple, quick, and profitable! Start making the most of your capital - tradeglobal markets using this simple, capped-risk option.

What is One‐Touch Trading? One-Touch is a method to trade an instrument, by speculating on a future target price range tobe either higher or lower than the current strike price. Traders will experience a gain or a loss

based on whether the market price reaches or fails to reach the target range prior to the optionsexpiration time.

Learn more about trading One-Touch here: https://www.gcmbinary.com/trade_one_touch.php.

What is High / Low Trading? The High/Low method of trading options is a straight forward speculative position taken by thetrader, who determines if the future market price is above or below the current strike price.Traders will experience a gain or a loss based on the prediction of whether or not the price is

higher or lower than the entry price.

Learn more about trading High / Low here: https://www.gcmbinary.com/trade_high_low.php.



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Account Opening

To trade Binary Options with GCM Binary, clients are required to complete the registrationprocess. There is no deposit is required in order to complete the registration process.

Demo Account Registration

Clients may register for a free Demo account by completing the short Demo account registratioform here: https://www.gcmbinary.com/signup_demo.php.

Clients may also register for a free Demo Account by clicking ‘Register for a Demo’ located onthe top of every GCM Binary page.

Clients may also register for a free Demo Account by clicking ‘Demo Account’ button located on

the GCM Binary homepage.

Once the client has submitted the free Demo registration form, an email with the Demo trading

account log in details will be sent to the client‘s email address. Please add our email [email protected] to make sure you receive emails from us.

Live Account Registration

Clients may register for a Live Account by completing the short Live Account application here:https://www.gcmbinary.com/signup_live.php.

Clients may also register for a Live Account by clicking ‘Open a Live Account’ located on the topof every GCM Binary page.





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Initial Deposit The minimum initial deposit to start trading a Live Account with GCM Binary is 200 USD or thelocal equivalent in one of the available trading currencies.

GCM Binary offers a wide range of efficient payment methods allowing clients to choose theprocess that is most comfortable for funding their trading account. Please note that there may brestrictions or fees associated with each method, and all funds are held by Gallant CapitalMarkets.

A deposit may be made with Visa, MasterCard, Skrill / Moneybookers, Paynova and Bank WirePlease note that Gallant is unable to accept funds from any source other than the accountholders own funds. Each client’s account balance must be sufficient to cover all of their openoption positions at all times.



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Trading a Binary Option

If you are new to GCM Binary, you are probably new to trading Binary Options. This step-by-step instructional guide is designed to assist you through logging in to your account, choosing a

trading instrument, selecting a market, and placing a trade via our platform.

Accessing Your Trading Account Once you have registered your account with GCM Binary, you may log in to the trading platformfrom anywhere on the site. Need to open an account?

Register with GCM Binary here: https://www.gcmbinary.com/signup_live.php.

Click ‘Platform Log In’ at the top of yourscreen. You will be directed to thetrading platform.

Enter your Username and Password inthe boxes provided and select either‘Demo’ or ‘Live’.

Click ‘log in’ to enter the GCM Binarytrading platform.

Access the Demo trading platform here: http://demo.gcmbinary.com/Home/Trade

Access the Live trading platform here: http://trade.gcmbinary.com/Home/Trade

Choose Your Instrument Purchasing a Binary Option is simple. Firstdecide which type of Binary Option youwish to utilize: High / Low or One-Touch,located at the top-left of your screen.

The High / Low method of trading Options is a simple ‘Up’ or ‘Down’ proposition. Select ‘Up’ ifyou believe the expiration rate will rise above the current rate, or select ‘Down’ if you believe theexpiration rate will fall below the current rate. Traders will experience a gain or a loss based onthe prediction of whether the expiration price is higher or lower than the entry price.

Learn more about trading High / Low here: https://www.gcmbinary.com/trade_high_low.php.

One-Touch is a method of trading Options that is also an ‘Up’ or ‘Down’ proposition. In whichyou speculate that the future price will rise above a top boundary or fall below a bottom



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boundary. Traders will experience a gain or a loss based on whether the expiration pricereaches the target boundary prior to the Options’ expiration time.

Learn more about trading One-Touch here: https://www.gcmbinary.com/trade_one_touch.php.

Find Your Market Click on an Asset that you would like to trade. This may be Stocks, Currencies, Commodities,or Indices. By clicking on an Option choice, the individual Asset will open up a Trade Box in thelower portion of the page for respective Asset / Option combination.

View our complete Asset Index here: https://www.gcmbinary.com/assets.php.

Complete Your Trade

Choose the direction of the price movement you believe your chosen asset will follow.

Once you decide whether you believe the value of the underlying asset will go up or down by thexpiry time, you select how much you would like to invest.

The minimum investment amount for a single High / Low and One-Touch Option is 25 USD andthe maximum investment amount for a single High / Low and One-Touch Option is 250 USD.



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The maximum number of Options that can be purchased at particular time is 30 Options. Theexposure limit is typically 7,500 USD. This exposure limit represents the total value of openpositions at any particular time. This amount varies between Countries and for differentcurrencies.

Once your investment amount is entered, you may purchase the Option by clicking the ‘InvestNow’ button.

Clients may also complete a trade directly from the chart.

After performing a trade action, the action appears as a data marker on the chart and the detailof the open trade are visible in the ‘My Open Orders’ list below the Trade Box.



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Close Your Binary Option

Now you have an open position. You may choose to either let the Binary Option expire or closeyour position early to take a profit or cut a loss.

Early Closure is a unique feature that allows trader to sell their open position at any givenmoment before the Option reaches the Stop time. This feature provides the trader full liquiditythroughout the Options’ lifetime, allowing traders to either take profit or stop loss at the momentof their choice.

Early Closure from the Trading ChartYour position may be closed before the Option reaches the Stop time and a yellow halo appeararound the data marker. Between the Stop time and the Expiry time of the Option, no action cabe made with the open position.

By clicking on the data marker of the open position on the chart (blue dotted line), a pop up willappear with the choice to close (Sell) the Option, showing your total investment, the currentpayout, and the return rate.

The payout and return rate are updated constantly, according to the change in Asset price. Onclick on the ‘Close’ button completes the Early Closure function.

Early Closure from the ’My Open Orders’ listWhen the Early Closure option is available from the ’My Open Orders’ list, an arrow button willappear next to the open position.

Clicking the arrow button will open an additional field displaying your total investment, thecurrent payout, and the return rate. One click on the ‘Close’ button completes the Early Closurefunction and removes the trade action from the list.



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Payout Calculation: The payout price updates dynamically based on Asset activity, Asset

current price, and the time remaining until the Options expiry.

Liquidity Commission: GCM does not charge any fees for liquidation of any options. One ofthe many benefits to trading Binary Options with GCM is you will gain access to the deepestliquidity pool in the market.



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Binary Option Trade Box Explained

By clicking on an individual Binary Option displayed in the Option List, you may view additionaldetails in the Trade Box shown below:

Explanation of the Trade Box items:

Price GraphA chart of the asset price versus time, including the target price(s), the time remaining until theOptions’ expiration and a shaded region indicating the area of profitability.



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Asset SymbolThe trading symbol of the chosen asset. In this example it is EUR / USD.

Market PriceThis is the current price of the asset determined by GCM Binary based on the live pricing feedssupplied by the data provider and represents the price at which GCM Binary is willing to sell theoption at the given time. In this example it is 1.30816.

Return/PayoutThis is the percentage return on investment clients can expect if the Option expires ‘In theMoney’. In this example it is 85% payout.

Expiration/Closing TimeThe time and date that an Option expires. The expiry time displayed to clients automaticallyadjusts according to the time zone of client. In this example it is 12:00.

Time Until End of Trading This countdown appears as the final chance to purchase the Option approaches. It represents

how much time is left until this Option can no longer be purchased. In this example it is 8minutes and 32 seconds.



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My Open Trades

All of your purchased and opened Options for the instrument you have selected (High/Low andOne-Touch) can be found in the ‘My Open Orders’ displayed below the trade box window. The‘My Open Orders’ also shows all recently executed Options, which may also include recently

closed positions.

In the case you have opened positions on multiple instruments; you can view all of your recent

positions by clicking on this icon in the upper-right corner of the title bar below.



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Explanation of the ‘My Open Orders’ box:

AssetThe symbol of the Binary Options asset that you have purchased. In this example it isAUD/NZD and EUR/USD.

Trade ActionThe Trade Action indicates the purchase price and the direction of your trade.

Trade TimeThe time of the purchase of the Binary Option.

StatusIndicates the status of the Binary Option (Closed or Opened).

ClosingThe time when the Binary Option is due to expire.

Closing StrikeThe price at which the Binary Option expired (applies for closed trades). In this example theclosing strike of the EUR/USD asset is 1.30814.

AmountThe amount invested in purchasing the Binary Option.

P&LThe value of the profit/loss for the specific trade. The P&L value for the individual Option iscalculated as the investment + possible profit – payout.

Total Open P&LIndicates the floating profit/loss of all of your open positions from all trading instruments(positions on High / Low and One-Touch).

To learn more about the current value of your Option, click the icon next to the trade. Wait forthe next price tick for the information to appear:

Along with viewing the current value, the panel allows you to sell/close an Option tradingposition, which is before the Stop level. This can occur no matter if the Option is ‘In the Money’or ‘Out of the Money’. The Early Closure is not available for all Options. Clicking the ‘Close’button immediately brings the relevant Option to expiration at the current market price.



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Trade History

The Trade History section can be accessed by clicking the ‘Reports’ link at the top of the menuof the GCM Binary trading pages. You must be logged into a trading account to be able to view

this section. The ‘Reports’ page is divided into two main sections:

Trade ActionsThis section provides a list of all Binary Options positions you have taken along with theoutcome. Using the basic dropdown filter as well as the ‘Advanced Filter’, you can filter out youtrades based on preference.

Transaction Report

This section provides a list of all individual transactions performed on your account. Using thebasic dropdown filter as well as the ‘Advanced Filter’, you can filter out transactions based onyour preference.



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Option Outcomes and Returns

The following possible outcomes pertain to both types of Option instruments:

In the Money or ITM

Options that expire ITM typically have returns on the order of 85% of the amount invested. Thismeans that for every 100 USD invested, the amount returned when the Option is ITM would be185 USD, or the initial investment plus 85 USD.

At the Money or ATMOptions that expire ATM result in a complete return of the amount invested to the client. As aresult, if 100 USD is invested in an Option that expired ATM, the return on this investment is 10USD.

The following section contains a more detailed explanation of those possibilities:

‘In the Money’ Expiry This term means that the Option is beneficial for the holder to exercise. Options that expire ‘Inthe Money’ or ITM are those that show a profit for the client at expiration. When trading via GCMBinary, Options will expire ITM under the following circumstances:

High / Low Binary OptionHigh Options expire ITM when the market at expiration is higher than the target price.Low Options expire ITM when the market at expiration is lower than the target price.

One-Touch Binary OptionOne-Touch Options immediately and automatically expire ITM if the market price reaches theOption’s target price at any time before expiration.

‘Out of the Money’ Expiry Options that expire ‘Out of the Money’ or OTM will yield a net loss for the client, but may stillreturn some percentage of the investment back. When trading via GCM Binary, Options willexpire OTM under the following circumstances:

High / Low Binary OptionHigh Options expire OTM when the market at expiration is lower than the target price.Low Options expire OTM when the market at expiration is higher than the target price.

One-Touch Binary OptionOne-Touch options expire OTM if the market price never reaches the target price prior toexpiration.



‘At the Money’ Expiry This term refers to an option with a target price at the same level as the market price atexpiration. When Options expire ‘At the Money’ or ATM, GCM Binary will return the amountinitially invested by the client.

When trading via GCM Binary, Options will expire ATM under the following circumstances:

High / Low Binary OptionHigh Options expire ATM when the market price at expiration is the same as the target price.Low Options expire ATM when the market price at expiration is the same as the target price.

Documents

Binary Trading eBook