Binary options

Fast-paced, time-capped, limited-risk markets

Our pioneering binary markets give you an exciting and different approach to trading.

  • Fast-moving: profit from short-term movements
  • Limited risk: know your maximum potential profit and loss before you trade
  • Unrestricted by volatility: take a position even in the flattest markets

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Binaries can be used in all kinds of situations, so we make sure you've got lots of choice when you're trading with IG.

Our huge range of binary types and markets means you can pick and choose to suit the situation and your strategy, whether the market is volatile or flat.

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Full range of markets

We offer dozens of markets, including major FX, indices and even commodities.

  • Indices
  • Forex
  • Commodities

See the full range

Variety of binary types

Our binary types cater for all types of volatility trading. Choose from:

  • One-Touch
  • Ladder
  • Tunnel
  • Hi-Lo
  • Target
  • Up/Down

See how each one works

Wide selection of timeframes

Our binaries are available in several timeframes:

  • hourly
  • daily
  • weekly
  • monthly 

What are binaries?

Binaries are based on a single question: "will the underlying market do X before the binary expires?"

They typically expire either hourly, daily, weekly or monthly. Intraday binaries are also available on forex.

At expiry, if the answer is yes, the binary settles at 100. If the answer is no, the binary settles at 0.

Until expiry, we make a price between 0 and 100 which you buy or sell depending on whether you think the answer will be yes or no.

This price will drift towards either 100 or 0 as it gets closer to expiry. You’re not tied in until expiry, and can close your position whenever you want.

Their fast-moving nature provides the possibility of short-term gains, alongside any potential losses. Although binaries are limited risk, you should be aware that there is still the potential to make substantial losses as well as gains. 

We may not use our prices for the settlement of some binary contracts. Please refer to our contract details on how we settle binary contracts.

See our range of binaries

For the full range of binary markets we offer, see our CFD details.  

View all our product details

Example

Let's say the FTSE 100 opened at 6427.64

At 1.36pm our Daily FTSE 100 ‘Up’ binary is at 42.6/46.4

You think the FTSE will finish up, so you ‘buy’ £10 at 46.4

Maximum profit 
53.6 x $10 = $536

Maximum risk 
46.4 x $10 = $464

Why trade binaries?

  • If you want to create exciting, short-term trading opportunities
  • If you want to trade with limited risk
  • If markets are flat but you want to trade on volatility

Who trades them?

Traders with a strong conviction
If you’re convinced of a particular outcome, and you think we’ve missed something in making our price

Traders looking to limit their risk
If you’re looking for high return on an unlikely scenario, but with limited risk

Traders looking for exciting short-term opportunities
If you’re expecting markets to move but don’t know which way, you can trade on volatility. 
 

How are they priced?

Our binary prices are based on the behaviour of an underlying market,
but set by us.

We make our price according to three factors: time to expiry, the underlying market’s current value, and our expectation of future volatility.

Because we make the market on our binaries, unlike many other markets this means that when you profit, we lose.

See our full product details

Why IG for binaries?

We were the first company to offer financial binaries, and we still offer market-leading prices and range of markets.

Whatever you prefer to trade on, you can be confident that we have a competitive binary on your market.

And with the reliability and quick execution of our market-leading trading platform, you’ll never miss an opportunity – even in fast-moving markets.

Why IG?

Demo account

  • Try trading binaries with $100,000 virtual funds
  • Explore our range of trading and analysis tools
  • Two-week access

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Explore our platform

  • See how our platform works
  • Instant access
  • No sign-up or login required

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Create an account

You can open an account online. It’s quick and free to set up, no minimum deposit is required and you are under no obligation to trade.

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Buying the 'FTSE to finish up' binary

  CFD
Underlying market/value

FTSE 100 6409.10

Our price

FTSE to finish Up (>6442.59) 13.8-16.9

Trade

Buy at 16.9

Trade size

One contract

Each contract is worth £10 per point

Margin required

£169

Binary price x contract size x no. of contracts

What happens next? The market rises by the close. The official closing level of the FTSE, as reported by Bloomberg, is 6448.47
Underlying market 6448.47
Close

Sell at 100

Gross profit

£831

100 – 16.9 = 83.1

Value of one point = £10

£83.1 x £10 = £831
Costs  

A (variable) spread of 3.1 points was applied to the opening spread price

Net profit

£831 profit subject to tax

What if... If the underlying market had dropped by the same amount and settled at 6369.73, the binary would have settled at 0 resulting in a loss of £169


 

Types

Types of binary

Ladder

At expiry, will the market be higher or lower than your chosen levels?

For when you think a market will move by a certain amount, but aren’t sure which direction.

Up/Down

Will the market be higher or lower at expiry?

A type of ladder, you decide whether the market will finish above or below a certain level.

One touch

Will the market hit a specific level before expiry?

One touches pay out if you’re right, even if the market price only stays there for seconds.

Target

At expiry, do you think the market will close within a specified range?

If you know both the direction and the level that a market will finish at, try target binaries. 

Hi-Lo

Can you predict the range your market’s daily high or low will fall in?

Have an opinion on how volatile the market will be through the day? Choose Hi-Lo binaries.

Tunnel

Will the market remain between two chosen levels until expiry?

Buy if you think markets will stay flat, sell if you expect the market to hit either on of the chosen levels.