General
How do binary forex options differ from traditional options?
Fixed currency options have a defined risk and reward while traditional options are traded on margin and carry unlimited risk and reward.
What is a premium?
A premium is the amount of money you wish to pay to buy an option with a specified value.
What is a value and when is it paid?
The value is the amount you win when the parameters of the option you have purchased are met. For example, if you purchase a one touch option and the price of the currency “touches” the barrier you set any time during the option period, you win the specified value.
Can I change the option’s value?
Yes. You can specify the value of any option in increments of 0.01 cents starting from $1. When trading the live data platform this value may be changed at any time prior to purchase. While on the historical data platform the value may be changed at any time prior to purchase provided you have not elected to purchase additional data.
Can I change the premium?
Premiums are a function of three factors: the value, the option period (expiration length), and the distance the barrier(s) are placed above and below the opening price. If you change the value from $1 to $10 or vice versa, the premium will increase or decrease respectively and proportionately. When the option period is changed (dragging the right end of the yellow barrier bar to the right) the premium will either increase or decrease depending on option. The factor having the greatest impact on the premium is the distance you set the barrier above or below from the chart’s opening price.
What is the difference between historical trading and live market trading?
The primary difference between historical trading and live market trading is the speed at which data is presented. Historical trading uses actual market data, but in random historical packs. While live market trading uses the “live market” rate feed.
Is binary option trading easier than spot market trading?
Technical traders will find binary forex options trading far less complicated than spot market trading for the following reasons:
- Charting skills are essentially the same when trading the spot market or options.
- The process is considerably less complicated and time consuming.
- There is no need to worry about the placement of stop losses or take profit orders.
- It is not necessary to spend extended periods of time monitoring the computer screen.
- Once an option has been purchased the results and hence profits are received in less than 10 seconds for historical trading and as fast as 5 minutes for live rate trading. Click here to find out more.
When can I trade?
Historical trading knows no time bounds and is available 24/7. Live market trading is conducted from Sunday 23:00 GMT to Friday 17:00 GMT with standard international financial market holidays excluded.
Is there any difference between the Trade for Fun and Trade for Real Money platforms?
The mathematical model used to generate charts and option pricing on both platforms is identical.
Historical Trading
What is historical trading?
Historical trading is a unique method to practice or profit using binary forex options at super speed. The historical platform uses commercial quality market data in its natural form. Furthermore, it is guaranteed to be void of manipulation via the Honesty Proofed method.
Why would I want to trade historical data?
When trading historical data there is always action, regardless of the time you elect to trade and payouts are as fast as 10 seconds. You have virtually the same chances of profiting from the historical market as you do the live market and perhaps better, since you have the ability to peak into the future.
Where does the data come from?
The charts displayed on the historical trading platform are not contrived. They are randomly generated from a historical database consisting of actual market data. The individual charts you see are, therefore, a pure reflection of pricing action that actually occurred during a defined period of time in the past.
Does the Y-axis represent actual rates?
The y-axis (vertical axis) does not represent the historical rate for obvious reasons. It does, however, maintain the integrity of the last two digits so that when the historical rate ends in 00, the displayed rate will also end in 00. Thus, the all important “round number” areas can be used as an additional reference in conducting your chart analysis.
How do I know the charts I see are not being manipulated?
The charts you see are randomly selected. They are small sections spliced from a real market historical database. Pricing is supported by a mathematical model that is based solely on each currency pair’s historical volatility. This being said, as a live trader, you are given the option to verify the integrity of the data used in conjunction with each trade. The process is called honesty proofing.
How does honesty proofing work?
Once the preliminary data set for a particular currency and time frame has been uploaded and is visible on your screen, simply opt in to receive a data verification download via the “H-Proof” button – one that provides password protected access to the high, low, and closing prices that will be displayed on the console chart for that trade, prior to the trade itself. Once the trade has run its course, a password will be provided in order to verify that the pricing fluctuations displayed on your screen were not in any way manipulated to gain an unfair advantage.
If this seems a bit confusing, consider this simple analogy. You take a stranger up on guessing a number between 1 and 10. Before you provide your guess, he writes his number on a piece of paper, places that piece of paper in an envelope, seals it, and hands it to you.
Envelope in hand, you guess the number to be 7 and immediately open the envelope. Win or lose the envelope you have in your hand guarantees that the attempt to guess the number was a fair one. In comparison, this is what our honesty proofing program is all about.
How does the extra candlesticks (more data) feature work?
This feature allows the user to purchase additional data for a fee. The cost is per candle and is based on a percentage of the value.
Live Market Trading
What is live market trading?
The live market version of RetroForex operates in virtually the same manner as the historical version with the exception that it uses a live market data feed.
Is pricing for live market trading different than historical trading?
Premiums for options are priced in exactly the same manner for all versions of RetroForex.
What is the shortest option expiration?
Binary forex options have expirations as short as 5 minutes.
Is there a maximum expiration?
Depending on the current market activity maximum expirations may vary, however, always exist. RetroForex is created to provide rapid payouts and virtually immediate profits.
What are the live market trading hours?
Live market trading hours are Sunday 23:00 GMT to Friday 17:00 GMT with standard international financial market holiday’s excluded.
Where does the data come from?
The data feed is from an international, retail market source and represents the true foreign exchange retail market rate.
Account Features
What is the minimum account size?
The minimum account size is only $1.
What is the minimum trade size?
The minimum option value is $1, however, premiums can be as low as 0.15 cents.
Do I have to make separate deposits for the historical and live rate platform?
No. Both versions operate from the same login and the same account.
Can I convert the account used to Trade for Fun into a Trade for Real Money account?
No. A separate registration is required.
How do I deposit funds?
We offer more than 14 methods to deposit funds. Login to your account for additional details.
How do you process withdrawal requests?
Withdrawal requests are preformed via the Help Desk to ensure IP Address and e-mail address confirmation. Requests are processed once per week and are returned via the same method in which they were received.
When can I start trading for real money?
You can start purchasing options when we have confirmed that your account has been approved and funded.
Are there any restrictions for withdrawals?
Once your account has been verified by proof of identity you may begin to request withdrawals. Withdrawal limits and rules depend on method of funding and current withdrawal rules.
What is a bonus requirement?
If a bonus is offered, when you make your initial deposit, it will be immediately credited to your account. While the bonus may be used immediately to purchase options, the bonus is not eligible for withdrawal until the required bonus usage terms have been met. These terms vary and are specified with each bonus offering.
Technical Requirements
What kind of internet connection do I need?
It is not necessary to have broadband (DSL or cable) connection to trade. The application is a flash driven platform that can just as easily be traded using a telephone modem with a 28.8K baud rate. The only limitations are (1) the number of applications you have open at any given time, (2) your computer’s ability to handle flash, (3) and the size of your computer’s random access memory (RAM). The platform is not operating system dependent.
What happens if I lose my internet connection immediately after I have purchased an option?
The performance of the platform will not be affected by your Internet connection. If you should lose your connection immediately after purchase, the option will run its course and winnings will be credited to your account.