Venturing on Forex | InstaForex Option

In general terms, Option is a kind of an arbitrage transaction with specific terms and conditions of future movements of the currency pair rate. The trader would gain a profit once the conditions and terms are fulfilled. Meaning this is what you use to trade in order to get profit.

InstaForex allows the trading of binary options every week, from Monday (00:01 UTC +3) to Friday (23:40 UTC +3) with a price-to-earnings ratio of 1.8. An option may be bought for a minimum cost of one dollar and a thousand dollar for the maximum cost. Since the cost of the option is already fixed, there is no need for leverage anymore and you can gain profit proportionate to your investment.

There are two kinds of Option in InstaForex:

Intraday to increase

This type of option allows profit earnings by making predictions about increases in currency exchange rates between two time periods during a single day. The profit margin for this option is fixed at 1.80, thus if successful, the net profit will amount to 80% of the amount initially invested.

Example:

You expect that between 15:30 and 17:00 the EUR/USD exchange rate will increase and you take out an intraday up option with the conditions stated for 100 USD. If the exchange rate at 17:00 exceeds the one at 15:30, your profit will amount to 100 x 1.80 = 180 USD and your net profit consists of the difference, 180-100 = 80 USD.

Intraday to decrease

This type of option allows profit earnings by making predictions about a decreases in currency exchange rates between two time periods during a single day. The profit margin for this option is fixed at 1.80, thus if successful, the net profit will amount to 80% of the amount initially invested.

Example:

This time you expect that between 12:30 and 12:40 USD/CHF exchange rate will decrease. and you take out an intraday down option with the conditions stated for 300 USD. If the exchange rate at 12:40 is lower than the one at 12:30, your profit will amount to 300 x 1.80 = 540 USD and your net profit consists of the difference 540 - 300 = 240 USD.

An option is opened/closed at the opening price of a candlestick. Please take note that once an Option is opened, it is only allowed to be canceled for the duration of 3 minutes after it had been opened with 10% of the cost already charged.

After the option is purchased, a partner gets 4% of cost of the option. It is also considered as non-profitable in the situation wherein the price remains the same from the opening until its closing. The condition to either increase or decrease is not fulfilled.

There is also a rebate of 50% of an agent's commission(2% form cost of the option). Unfortunately you cannot open an option using bonus funds, only real funds are allowed.