What is Binary Exchange?



Binary Exchange is a set of financial instruments that provide investors with pre-defined risk/reward levels on each trade. Available markets to trade Binary Exchange include asset classes such as stocks, indices, currencies, commodities, and futures markets.

The amount of money that investors pay to open a Binary Exchange position is known as a premium. The premium reflects the value of the Binary Exchange contract. As a Binary Exchange contract increases in value over time – so may its premium, whereas Binary Exchange positions that lose value over time will have their premiums decrease in value.

When investors enter the market with a binary exchange contract, their maximum potential loss is known in advance. In certain cases, the maximum profit is also known beforehand.

The reason for this is because the maximum risk when buying a Binary Exchange contract is limited to the premium paid. In other words, the premium paid to open the position represents the maximum risk on that position.

Benefits of Exchange Trading


BinarEx, short for Binary Exchange, was created to bring the Exchange traded model to the Binary Exchange industry. The Binary Exchange industry has come under recent scrutiny because of unregulated brokers that operate without regard to providing best-execution to their clients. BinarEx brings the transparency needed to help ensure traders that they will receive the best execution available while trading on our highly regulated exchange-traded model.

In a traditional exchange, orders from buyers are matched with orders from sellers when the price of their orders match within a centralized order book of all clients’ orders. In addition, designated market-makers on traditional exchanges such as the New York Stock Exchange (NYSE) help add additional liquidity using prices that are available to all exchange participants. BinarEx uses a similar approach to the exchange-traded model by matching clients’ buy and sell orders when their strike prices are the same.

BinarEx enables investors to trade Binary Exchange within a highly regulated environment and similar to what a trader would expect at a global stock exchange. To learn more about our regulatory licenses and how BinarEx works, click here. BinarEx is proud to bring you the best solution for trading Binary Exchange, and we welcome you to open a BinarEx account today.

Why The Exchange Model Matters


Most Binary Exchange brokers act as market-makers when executing their clients orders. BinarEx removes this potential conflict of interest by matching traders’ buy orders against other traders’ sell orders when price levels match within our centralized order book.

The exchange trading model has significant advantages and helps BinarEx deliver the best execution possible when matching clients’ orders on the BinarEx platform. Another important difference is that traders aren’t required to hold on to the each option until it expires – they are free to buy or sell it at any time to lock their profits or cut their losses. This lets traders exist a position early, and similar to how exchange-traded options work, using the American and European style options contracts – where trades can be exited even before expiration.

The Binary Exchange that BinarEx has created represents the best working model for bringing fair and transparent trading to Binary Exchange’ traders globally. When you trade Binary Exchange with BinarEx, you receive the same level of transparency as traders expect on a regulated exchange, with accurate and actual time and sales information on all bids, offers, and trades executed during the trading session.