Binaries

 

 

Make the most of every market move

  • Profit from short-term movements – timescales from 60 seconds to monthly
  • Take a position even in the flattest markets
  • Know your maximum potential profit and loss before you trade
  • Trade volatility, not just direction

Ready to start?

Simply create an account or log in to start binary trading.

Start trading binaries

Please remember, your capital is at risk. 

Transcript

 

Welcome to this short video on binaries, where I’m going to explain a bit more about how binaries work and why you should trade them with IG.

All binaries are based on a Yes/No question, for example ‘Will the FTSE finish up today?’

If you think the answer is ‘yes’, you buy. If you think it’s ‘no’, you sell.

The price of the binary fluctuates between zero and 100, according to how long there is to expiry, and what’s happening in the underlying market.

If the eventual answer to the question is yes, the binary will settle at 100.

If it’s no, it will settle at zero.

Your profit or loss is based on the difference between the price you opened at, and the settlement price…

…or the price you close at, if you decide to trade out early… which you can do unless you're dealing on one of our sprint markets.

And because the settlement price is always zero or 100, you will know your maximum potential gain or loss from the start.

In addition to providing certainty around your risk, with our binaries you can take advantage of a variety of different market events and conditions.

You can choose from a wide range of underlying markets, and pick an expiry time to suit your strategy.

We also offer a number of different types of binary, each one suited to a particular set of circumstances.

Our five-minute Up/Down binaries, for instance, are ideal if you want to trade on very short-term market movements.

A small change in the underlying price can have a large effect on a binary, so you can make significant gains, or losses, even in flat markets.

And as you’d expect with IG, you get near-instant execution whether you’re dealing on a tablet your mobile or a computer.

To start trading binaries, open an IG account today.

 

 

Get more with IG

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.

Start trading binaries today

Full range of markets

We offer dozens of markets, including major FX, indices and even key economic events.

  • Indices
  • Forex
  • Commodities
  • Shares
  • Key economic indicators (such as political events and non-farm payrolls)

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:

  • 5 minutes
  • 20 minutes
  • 60 minutes
  • daily
  • weekly
  • monthly 

Want even faster binaries? Try our sprint markets and see a result in just 60 seconds.

How to trade binaries

A binary is generally based on a single question with a yes/no answer:

'Will the underlying market do ... before the binary expires?'

If you’re right at the time of expiry, you win. If you’re wrong, you lose.

Want to learn more? See some examples

 

 

Why trade binaries?

I want strict limits on my risk

Binaries can offer a high return on unlikely scenarios – all while limiting your risk.

I want exciting short-term opportunities

Take advantage of short-term trading opportunities, with positions running from just 5 minutes (or 60 seconds with sprint markets).

I want to trade on volatility itself

Take a position, even when you don’t know which direction a market will move.

I have a strong conviction on the market

If you’re convinced of a particular outcome, and you think we’ve missed something in making our price, you could use binaries to take advantage.

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.

If your expectation of future volatility differs from ours, you may be able to profit by trading IG binaries.

See an example of trading volatility

The fast-moving nature of binaries 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.

See full spread betting product details

See full CFD product details

Binary regulation

You should note that binary bets are not subject to regulation by the Financial Conduct Authority. In respect of binary bets, IG Index Ltd is licensed and regulated by the Gambling Commission. Reference number 2628.

Ways to trade with IG

Open an account with us and you’ll have two ways of trading sprint markets:

Spread betting

No stamp duty or capital gains tax* to pay

CFDs

No stamp duty or commission to pay

 

 

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.  

Markets

Market Type Timescale
Equity indices    
FTSE 100 Ladder, Up/Down, One Touch, Target, Tunnel, Hi/Lo 5 min to weekly
Wall Street  Ladder, Up/Down, One Touch, Target, Tunnel, Hi/Lo 5 min to weekly
Germany 30 Ladder, Up/Down, One Touch, Target      5 min to weekly
France 40 Ladder, Up/Down, One Touch Daily
Italy 40 Ladder, Up/Down, One Touch Daily
Spain 35 Ladder, Up/Down, One Touch Daily
Sweden 30 Ladder, Up/Down, One Touch Daily
Netherlands 25 Ladder, Up/Down, One Touch        Daily
US 500 Ladder, Up/Down, Target Daily to weekly
US Tech 100 Ladder, Up/Down, Target Daily
Singapore Blue-Chip Ladder, Up/Down Daily
Australia 200 Ladder, One Touch, Tunnel 20 min to weekly
South Africa 40 Ladder Daily
Japan 225 Ladder, One Touch, Tunnel Hourly to weekly
China H-Shares futures, China 300 futures, Hong Kong HS42 futures Ladder Daily
All Japan 225, Japan All-Share futures Ladder Daily
Taiwan All-Share futures Ladder Daily
Forex    
Spot EUR/USD, GBP/USD, USD/JPY, AUD/JPY Ladder, Up/Down, One Touch 5 min to monthly
Spot EUR/GBP, EUR/JPY, GBP/JPY,USD/CAD, AUD/USD, USD/CHF Ladder, One Touch Daily to monthly
Commodities    
US Light Crude Oil Ladder, One Touch Daily to weekly
Gold, Silver Ladder Daily to weekly
Other    
Politics: Next UK General Election, Scottish Referendum N/A N/A
US Jobless Claims Ladder Weekly
US Non-farm Payrolls Ladder Monthly
Individual UK shares Up/Down Daily