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GET Binary

From EverybodyWiki Bios & Wiki

GET Binary
File:Logo-get-big.png
getbinary logo
ISIN🆔
Industryderivatives market
Founded 📆London, United Kingdom (2008)
Founder 👔
Headquarters 🏙️, ,
Area served 🗺️
worldwide
Key people
Dominic Williams, CEO Evan J. Cort, CFO
Products 📟 binary options
OwnerEA-INVESTING HOUSE LTD
Members
Number of employees
🌐 WebsiteGET Binary Official Website
📇 Address
📞 telephone

GET Binary is a binary options trading platform that operates under the 'EA-INVESTING HOUSE' group who provides corporate and institutional customers with unrivaled financial services in the financial world.

Since 2006, GET Binary joined the parent group ('EA-INVESTING HOUSE') and opened new services for the private and individual investors.

Regulation[edit]

GET Binary works in the terms of the Cyprus Securities and Exchange Commission (CySEC).

Business model of Binary Options[edit]

The platform do not charge fees from it investors. Their profit comes from the difference between the options that expire in the money to options that expire out of the money. This difference can be found by the formula below. In this (for each base asset with same expiry characteristics), (W) is the in the money option payout in percentage terms (e.g., 1.7), (L) is the out of the money option payout in percentage terms (e.g., 0.15), (V_{1}),(V_{2}) are the turnovers of transactions made for each outcome (e.g., $1,000), (S) is the platform's gain. S = -[V_{1}(W-1)+V_{2}(L-1)] In this example the platform's turnover is $2,000 and its profit is $150 or 7.5% on turnover. As the platform’s gain comes from the above fo rmula, most platforms will be indifferent as to the outcome of a single trade. Note that if V_{1} is not equal to V_{2} then the platform will have to act as a market maker. This can cause the platform gain (S) to be more volatile than in the above formula. In order for a trader to make a long-term profit he has to predict correctly roughly 54.5% of the time (depending on in-the-money and out-of-the money payouts).

Example of a binary options trade[edit]

A trader who thinks that the EUR/USD price will close at or above 1.2500 at 3:00 p.m. can buy a call option on that outcome. A trader who thinks that the EUR/USD price will close at or below 1.2500 at 3:00 p.m. can buy a put option or sell a call option contract.

At 2:00 p.m. the EUR/USD price is 1.2490. The trader believes this will increase, so he buys 10 call options for EUR/USD at or above 1.2500 at 3:00 p.m. at a cost of $40 each.

The risk involved in this trade is known. The trader’s gross profit/loss follows the "all or nothing" principle. He can lose all the money he invested, which in this case is $40 x 10 = $400, or make a gross profit of $100 x 10 = $1,000. If the EUR/USD price will close at or above 1.2500 at 3:00 p.m. the trader's net profit will be the payoff at expiry minus the cost of the option: $1,000 – $400 = $600.

The trader can also choose to liquidate (buy or sell to close) his position prior to expiration, at which point the option value is not guaranteed to be $100. The larger the gap between the spot price and the strike price, the value of the option decreases, as the option is less likely to expire in the money.

In this example, at 3:00 p.m. the spot has risen to 1.2505. The option has expired in the money and the gross payoff is $1,000. The trader's net profit is $600.

External links[edit]


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