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What Are 0-100 Binary Options

Updated on April 15, 2016

AnyOption Now Has 0-100 Binary Options

AnyOption is a leader among binary options trading platforms. It is innovating CySEC binary options with 0-100 options.
AnyOption is a leader among binary options trading platforms. It is innovating CySEC binary options with 0-100 options. | Source

AnyOption Has 0-100 Binary Options

AnyOption has innovated the binary options industry once again. You may recognized Anyoption as one of the first and longest lasting of the European style binary options brokers. This broker has been working hard to bring binary options into mainstream trading and its new 0-100 binary options is another step in that direction. One of the biggest areas of concerns in the binary options industry is regulation. AnyOption and many of its fellow Cyprus based binary options brokers is now CySEC regulated which is a good step. This makes the industry safer and more standardized. One thing it does not do is give these brokers access to the U.S. marketplace. Aside from being a great method of trading binary options 0-100 options are a step in the direction of CFTC regulation. 0-100 is the same style binary options as what are traded on NADEX and the other major U.S. exchanges.

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How To Trade 0-100 Binary Options

Trading 0-100 options is simple, if you think that the price will be above the strike at expiry buy, if not sell.
Trading 0-100 options is simple, if you think that the price will be above the strike at expiry buy, if not sell. | Source

0-100 Options Are Tradabel

AnyOption and NADEX 0-100 options are tradable. Because the option strikes are set and prices fluctuate you can sell or buy to close at any time prior to expiration. Profits or losses are determined by the difference between opening and closing prices.

Selling 0-100 Option

Selling 0-100 Option creates a credit position. 0-100 options are tradable during their lifespan.
Selling 0-100 Option creates a credit position. 0-100 options are tradable during their lifespan. | Source

How Do You Trade 0-100 Binary Options

AnyOption's 0-100 binary options are a cash settled all-or-nothing fixed return trading vehicle. This sounds really complicated but it isn't. 0-100 options are a binary option whose value at expiration is either 0 or 100. If you are trading dollars its $100, if euros then €100. The main difference between these and other types of binary options is the strike and how the option is priced. So far there is only one asset and one strike available at any one time but hopefully that will change. Strike is determined by AnyOption and then you trade on whether you think the underlying will close over or under that strike. This sounds a lot like high/low options but there is a big difference. The strike is set in the case of 0-100 options and the price fluctuates according to the price of the underlying. Because the price of a 0-100 option at expiration is either 0 or 100 the price of the binary option will fluctuate between 0 and 100.

How Are 0-100 Options Priced

The pricing of 0-100 binary options leads to some other differences. First, these options are bought in lots. Each lot represents 100 shares of stock and is worth $100 if it expires in the money. The price of each lot will be somewhere between $0 and $100, depending on the price of the underlying asset. Your potential for profits will be the difference between the price of the option and $100. This makes 0-100 options one of the highest potential returns on investment in the binary options world. If you buy an option for $10 and sell it for $100 you have made 1000% profit. However, it is more likely your option will cost in the range of $40ish-$90ish based on my observations.

Credit Positions With 0-100 Options

Another big difference with 0-100 options and other forms of binary options is credit. Most other forms of binary options are strictly debit positions. You have to buy them and your account is debited because your two choices are to buy a call or buy a put. 0-100 options are traded differently. If you think the position is going to close in the money you buy it at the market price. If you think its going to close out of the money you sell it. When you buy you pay the market price and when you sell you receive it. Your risk for selling a 0-100 option is the difference between the sale price and $100. If you sell an option at $75 then you are risking $25 or 33%. If you sell an option at $35 you are risking $65 or 180%. If the option closes out of the money you receive the credit and incur no other risk. If the option closes in the money you have to pay $100.

AnyOption One Click Trading With 0-100

0-100 options are more risky. One thing to be aware of is "one click trading". It is possible to make mistakes if you are not careful.
0-100 options are more risky. One thing to be aware of is "one click trading". It is possible to make mistakes if you are not careful. | Source

AnyOption Review

At this time AnyOptionis on my short list of approved brokers. It is not perfect but it is working hard at providing a top notch binary options trading experience. AnyOption is an independent and proprietary platform and not a SpotOption re-brand. It has been around since the start of the digital options age and has been able to remain at the top of the industry ever since. Many of its features are being copied by other platforms under names like "Option Builder".

AnyOption is a Cyprus based and CySEC regulated binary options platform. For more information and objective reviews please visit BinaryOptionsThatSuck.com.

NADEX Binary Option Order Ticket

NADEX has more strikes and expirations than any other binary option platform.
NADEX has more strikes and expirations than any other binary option platform. | Source

NADEX Binary Options

NADEX binary options are CFTC regulated. They are a fixed return all-or-nothing trading vehicle with a value of $0 or $100.
NADEX binary options are CFTC regulated. They are a fixed return all-or-nothing trading vehicle with a value of $0 or $100. | Source

Similar To NADEX

AnyOption's 0-100 binary options are nearly identical to NADEX style and CFTC regulated binary options. There are still a few differences and ones that I think are important. For U.S. traders, NADEX is the only CFTC regulated binary options exchange. In my opinion it is the only choice. CySEC regulated binary options are not bad, there is just a high level of risk that these brokers will be denied access to U.S. markets or be forced to close their doors to us. For those of you residing in the EU or another country with friendly relations with the EU Anyoption and a several other CySEC regulated brokers are a good option for you.

Differences From NADEX Binary Options

  • Strikes-NADEX has more strikes and more expirations. There are usually a half dozen strikes for each expiration which range from intraday to end of day and end of week.
  • Exchange-NADEX is an exchange. When you make a trade on NADEX you are trading with another person, when you trade with a CySEC broker you are trading with the house.
  • Assets-NADEX has binary options available on over 3 dozen of the worlds most commonly traded indexes, currency pairs and commodities. NADEX even has binary options on economic events like the initial jobless claims numbers or the fed funds rate.
  • CFTC- NADEX is CFTC registered and certified. Options are cleared through the OCC. NADEX is the only binary options exchange licensed and regulated in the U.S.
  • Click here for more information on NADEX

Other Types Of Binary Options

  • Isle Of Man Regulated Binary Options are licensed under the GSC as a gaming and gambling website. MarketsWorld is one notable platform claiming UK regulation under this license.
  • Other "Regulated" Binary Options exist under the same heading as Isle Of Man GSC. At this time the only financial regulation of binary options is being done by the CFTC, CySEC and the FSA in Britain.
  • Unregulated Binary Options are to be avoided. There are just too many choices of brokers that have either CySEC or CFTC certification. My top choices are NADEX for US citizens and AnyOption, 24Option and Banc De Binary for all others.

High Low Binary Options

High/low binary options have only one strike price, the current price of the option.
High/low binary options have only one strike price, the current price of the option. | Source

Types Of Binary Options

There are three main classifications of binary options; CySEC binary options, CFTC binary options and other. Among the three classifications there are different kinds of binaries. This may seem odd at first, binary options only have two outcomes, but there is more than one way to set up a trade with a yes or no outcome. All CFTC binary options are 0-100 style options. This includes NADEX, CBOE and AMEX binary options. CySEC and "other" types of binary options can be 0-100 or one of several other common types of binary options.

Common Types Of CySEC Regulated Binary Options

Hi/Low Binary Options-This is the standard form of binary options and the one you will find most often. These binaries are based on whether you think the price of the underlying asset is going to go up or down from the current price. These options only have one available strike price, the current price of the underlying. You trade as much or as little as you like and choose from a list of expiries that may range from a few minutes to several weeks or even months. High/Low binary options are a great way to speculate the markets. They provide a simplified way to gain access to international markets, commodities and currency trading.

Touch/No Touch Binary Options- Another common name for this type of option is One Touch. These options are usually traded over the weekend or when the underlying asset is closed for the night. Touch options are based on whether you think the underlying will or will not touch a set strike. Strikes are generated by the broker and are weighted in their favor. Touch options have much larger payouts because of the increased risk.

Range Options-Range options assume that the underlying will or will not close inside a given range. These options typically have a one week expiry if traded over the weekend or one day if traded overnight. These are among the riskiest of all binary options. Ranges are usually set tight and give little room for movement. The ranges are preset and you trade amounts of your choosing.

60 Second Binary Options- These are the shortest term binary options available. They are nothing more than a way to gamble on the stock market. You trade as much or as little as you want. Strike price is the current price of the underlying and expiry is 60 seconds from purchase. The extreme short term nature of these options make them impossible to predict and very risky.

2-5 min Binary Options- These are another highly speculative binary options instrument of dubious use. These options expire either 2 or 5 minutes after purchase and are only marginally better than 60 second options. However, there is a potential use for these options in hedging binary positions or trading on news events and announcements.

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    • TheDigitalOption profile image

      Justin Delano 

      4 years ago from Everett

      A surprisingly detailed overview of the subject. Not bad, keep it up.

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