OptionBit has their headquarters in Nicosia, Cyprus. OptionBit allows currency, commodities, indices, stocks, and exotic options trades. OptionBit operates in the GMT time zone as its office is located in this zone. This company has been in business since 2010. U.S. traders are allowed to trade with OptionBit and their customer service can be contacted by phone, email, or live chat. OptionBit’s site is easy to navigate and understand, with a mixture of words and graphics so traders of all levels can understand. Binary options trading is the main focus of the OptionBit site and these trades consist of determining whether a price will be above or below a set price by the end of the trading period. OptionBit offers three types of binary options trading; digital, touch, and range. Digital is the most popular type of binary options trading and the trader must select the call option or the put option. The call indicates the price will be higher, the put indicates the price will be lower. Touch is the second type of binary options trading and this works by making a prediction whether an asset with ‘touch’ a set price before the end of the trading period. The third type of binary options trading is range. This trade is made by predicting whether the price of an asset will be within a determined range when the trading period expires. OptionBit offers resources for traders to learn how to trade binary options. They have definitions of common terms used in binary options trading, an e-course in binary options trading and a binary tutorial. OptionBit uses GoDaddy.com Verified & Secured, powered by TradoLogic and associated with Reuters, 18+, and Skrill MoneyBookers.
OptionBit Trading Platforms
OptionBit offers a downloadable trading platform that can be used from a personal computer to manage accounts and trades. OptionBit’s platform and support is available in multiple languages including English, Geman, Romanian, Spanish, Turkis, Russian, French, Italian, Portuguese, Japanese, Arabic and Korean. OptionBit’s platform allows traders to track indices, currencies, commodities, and stocks. Traders can set their underlying assets, binary option contract, and forecast or prediction. The underlying asset is simply the trade types of stocks, indices, currencies, and commodities. The binary option contract is the length of the trading session and it typically lasts from one hour to one month. OptionBit allows their traders to buy contracts that have much shorter terms. The forecast or prediction is the determination by the trader whether the asset with be higher or lower than the pre-set price. Some special features that OptionBit offers are the close now and roll over options. The close option allows traders to exit their digital trade before time expires. This gives traders the opportunity to get out of the trade if it is not travelling in a favorable direction and prevents further money loss. The roll over options allows traders to lengthen the time of expiration. This allows extra time for the trade to fall within their prediction so they can make a profit. The commodities that OptionBit has available are crude, gold, silver and copper. The currency pairs that OptionBit has available are
EUR/JPY, USD/CAD, EUR/USD, AUD/USD, GBP/JPY, GBP/USD, EUR/GBP, EUR/CHF, NZD/USD, USD/JPY, and USD/CHF.
The indices that OptionBit has available are Dax Future, BOVESPA, Dow Jones, S&P 500 Future, NASDAQ100, FTSE Future and CAC Future. The stocks that OptionBit has are Apple, Boeing, Exxon Mobil, Google, McDonald’s, Microsoft, Nike, Vodafone, ING Group, and Coca Cola. The only bond that OptionBit trades is BUND.
Account and Trading Information
OptionBit has a standard trading account only. A unique aspect of OptionBit is that the trading platform does not have brokers so there are no commission fees. They have trading experts to help customers develop an effective trading strategy. There are no investment fees and the minimum investment amount is $100 and a maximum amount of $5,000 with a credit card. If traders want to deposit more money they can do so by using a wire transfer. OptionBit also offers a bonus for first investments of $500 or more. OptionBit also has ongoing promotions for their traders. If traders invest $500 they will receive a 20% bonus, if traders invest $2,000 they will receive a 30% bonus, and if traders invest $5,000 they receive a $5,000 bonus. There is also a VIP program that gives traders priority when scheduling an appointment is a market analyst, faster withdrawals, and extra allowances on investments. There are also some other terms that traders should learn before they begin. These are as follows:
- Order Processing: Orders are instructions to execute a trade at a certain time. Each company has specific policies on how they process their orders. Speak to an OptionBit customer service representative to find more information on their Order Processing policy.
- No Dealing Desk Execution: This is a type of trading that utilizes several providers to find the best bid and ask prices. Speak an OptionBit customer service representative to find more information on their No Dealing Desk Execution policy.
- Guaranteed Stop Losses: Guaranteed stop losses allow traders to leave trades automatically so they do not lose more money. Check with an OptionBit’s customer service representative for information on their Stop Loss policy.
- Liquidity: This measures the effect of large transactions on price. The higher the liquidity, the less effect large transactions have on price. Speak to a member of OptionBit’s management team to find more information on Liquidity.
- Swap-Free Accounts: A swap is purchase and sale of a currency pair that is made at the same time at a specific rate of exchange. There are some traders that will not use swap trading because of religious beliefs or personal ethics. Swap-Free Accounts are set up for traders who cannot swap. These accounts try to level the playing field of not participating in swaps compared to those who do participate in swaps. Speak to an OptionBit customer service representative to find more information on their Swap-Free account policy.
- Scalping: Scalping is also called fast trading. This trading type works by holding a position for only a few seconds or a minute to reduce the risk of loss by making only small profits. Speak to an OptionoBit customer service representative to find more information on their Scalping policy.
- Fixed Spread: A spread is the difference between ask and bid prices. A fixed spread is a spread that does not take into account market fluctuations and therefore does not change. These spreads tend are bigger to make up for market fluctuations. This creates more expensive fees that traders incur. Speak to an OptionBit customer service representative to find more information on their Fixed Spread policy.
- Interest on Margin: Margin is the amount of money that is needed to hold a position open. Some companies and brokers will charge interest fees on margin. Speak to an OptionBit customer service representative to find out more information on their Interest on Margin policy.
- Phone Dealing: Phone dealing is when a trader calls their trading company and has a representative execute trades on their behalf. Speak to an OptionBit customer service representative for their policy on Phone Dealing.
- Hedging Capability: A hedge is a position or several positions that are used to reduce the risk of loss. Speak to an OptionBit customer service representative on their Hedging Capability.