What are binary optionsBinaries Fee StructureRange of marketsFunding FacilitiesBinary Anniversary BonusTrading platformsOpen LIVE ACCOUNTOpen DEMO ACCOUNTLog inTrading ConditionsBinaries Payout Concept

Trading Conditions

General

  • The client can only trade 3 types of options:

• Binary Options – conventional up/down type binary options on FX currency pairs.
• Daily Stock Options (DSO) – up/down binary options on daily movements of stocks traded on major global exchanges.
• Pair Binaries – binary options based on the relative performance between a stock and the Index of the exchange where this stock is traded.

  • Dukascopy binary trading platforms are designed only for manual trading by the client. Use of any robots, spiders or other automated data entry system for submission of orders is expressly prohibited.

Contracts duration and timing

  • Binary options on FX currency pairs can only be traded intraday. No option will have an expiry time later than the settlement time, which is 21:59:59 GMT during winter time (20:59:59 GMT during daylight-saving time).
  • A 2-seconds countdown period is applied to every Binary Option market order (i.e. non-pending) before starting the execution. This means that if a client requests, at 12:00:00, the opening of an option with duration of 1 minute, the execution will actually start at 12:00:02 and expire at 12:01:02, provided that execution criteria were met. It is not possible to cancel or to modify the option during the countdown period (Option is in PROCESSING status).
  • The client shall preliminarily decide the duration of each Binary Options contract on FX currency pairs. The duration shall be defined in a number of hours and minutes between 1 minute and 23 hours 59 minutes (maximum possible duration available only if the option is set right after the settlement time). Limits of contract duration applicable by default are listed below. Dukascopy reserves the right to amend these limits at its entire discretion, without prior notice.
     
Instrument
Min contract
duration
Max contract
duration
EUR/USD
1 m
23 h 59 min
USD/JPY
1 m
23 h 59 min
GBP/USD
1 m
23 h 59 min
USD/CAD
1 m
23 h 59 min
AUD/CAD
1 m
23 h 59 min
EUR/JPY
1 m
23 h 59 min
USD/CHF
1 m
23 h 59 min
GBP/JPY
1 m
23 h 59 min
NZD/USD
10 m
23 h 59 min
EUR/GBP
10 m
23 h 59 min
EUR/AUD
10 m
23 h 59 min
EUR/CHF
10 m
23 h 59 min
AUD/JPY
10 m
23 h 59 min
GBP/AUD
10 m
23 h 59 min
EUR/CAD
10 m
23 h 59 min
GBP/CAD
10 m
23 h 59 min
CAD/JPY
10 m
23 h 59 min
GBP/CHF
10 m
23 h 59 min
GBP/NZD
10 m
23 h 59 min

 

  • Dukascopy reserves the right to apply individual limits on contract duration for separate trading accounts.
  • Daily Stock Options duration is equal to the length of the trading session of the exchange where the underlying instrument is traded. DSO are always scheduled for execution on the nearest trading session opening. If a DSO order is placed while the trading session is running or during off-exchange hours, the option opening will be scheduled for the start of the next trading session. Once accepted for execution, a DSO option lasts during the entire trading session of the respective exchange and expires at the close of the session.
  • Pair Binaries’ duration is equal to the length of the trading session of the exchange where the underlying is traded plus the off-market period preceding the scheduled trading session. Pair Binary options are always scheduled for execution on the nearest trading session close. If a Pair Binary Option order is placed during off-exchange hours, the option opening will be scheduled for the close of the next trading session. Once accepted for execution, a Pair Binary Option lasts during the off-market period and during the nearest full trading session of the respective exchange. Option expires at the close of the scheduled session.
  • Duration of DSO and Pair Binaries cannot be adjusted by the client. 

Trading amounts and exposures

  • Amount of trading orders submitted by the client is subject to limitations on single contract amount, total exposure on a single instrument and overall exposure of the account.
  • The number of pending and active contracts cannot exceed 100 at a time.
  • Exposure is calculated on the total amount of contracts in ACTIVE status, irrespective of their side (Call or Put) and underlying instrument. For instance, an active Put contract for 100 USD and an active Call contract for 200 USD build up a total exposure of 300 USD.
  • Limits on contract amounts and exposures applicable by default, depending on the base currency of the trading account, are listed below. Dukascopy reserves the right to amend those limits at its entire discretion and without prior notice. 
Base currency
Min contract 
amount
Max contract
amount
 
Max exposure
 
USD
1
1'000
5'000
EUR
1
900
4'500
CHF
1
1'000
5'000
GBP
1
800
4'000
JPY
100
100'000
500'000
CAD
1
1'300
6'700
SGD
1
1'300
6'700
PLN
1
4'000
20'000
HKD
1
7'800
40'000
AUD
1
1'300
6'500
DKK
1
6'700
35'000
MXN
1
1'300
95'000
NOK
1
8'400
42'000
NZD
1
1'400
7'000
RUB
1
64'000
320'000
SEK
1
8'500
43'000
TRY
1
3'000
15'000
ZAR
1
15'000
75'000
  • Dukascopy reserves the right to apply individual limits on contract amounts, single instrument and/or overall account exposures for selected trading accounts as well as for separate trading instruments.
  • For Daily Stock Options and Pair Binaries, maximum exposure per underlying instrument is equal to the maximum contract size and is calculated as the sum of all ongoing contracts with the same underlying. Orders/contracts breaching the maximum exposure will be cancelled together with associated profit or loss (with possible delay due to manual cancellation).

Options in Pending status

  • Clients have the possibility to place pending entry options on FX currency pairs (Binary Options) to be executed at a specific date and time of the current week. Pending options cannot be placed for dates and times further than the current week.
  • To be valid, a pending option shall contain at least: (i) the direction of the option contract (Call/Put), (ii) the concerned underlying instrument, (iii) the desired contract amount/premium to be paid, (iv) the duration the option contract shall last if open, and (v) the triggering date and time. The client may additionally, without being obliged to do so, indicate a price condition and/or the minimal acceptable base payout percentage. At the triggering time entered by the client, the system checks whether the pending option may be executed based on the conditions set by the client and Dukascopy requirements (existence of available margin, absence of same-instrument options with the same maturity time, approval of the Terms and Conditions, etc.) or if the pending option shall be rejected.
  • Daily Stock Options are always scheduled to the nearest trading session opening. An option is in PENDING status from creation until opening of the trading session on the exchange. An order is in PROCESSING status 1 hour from trading session start until execution point. 
  • Pair Binary order is in PENDING status from creation moment until the nearest close of the trading session of the underlying instrument. An order is in PROCESSING status 1 hour after Pair Binary Option start. 
  • Orders in processing status cannot be cancelled by the client. After "PROCESSING status", orders may shift to either EXECUTING (if successfully accepted) or REJECTED status (e.g. if price was not available, margin was insufficient etc.).
  • Clients can cancel orders in PENDING status at any time. Orders in PROCESSING and EXECUTING status cannot be cancelled by the client.

Order Execution Policy

  • For Binary Options the strike price is fixed at the moment when the option contract starts/is executed and is based on the ASK price, of this moment, for Call options and on the BID price, of this moment, for Put options.
  • For Daily Stock Options the strike price is fixed 1 hour after the start of the trading session of the respective exchange and equals the OPEN Price of the instrument during this trading session.
  • For Pair Binaries the strike condition is set as "Stock performs better than Index" or "Index performs better than stock". Relative values of daily performance are calculated based on the close price of the previous trading session and close price of the current trading session.
  • The strike gets hit by the ASK price for Put options (Short positions) and by the BID price for Call options (Long positions) in case of Binary Options on FX currency pairs. For Daily Stock Options the strike gets hit by the CLOSE price of the instrument for a concerned trading session.
  • In order to be considered to mature In-the-money (ITM) the option's underlying instrument price at the time of expiry should reach and exceed the strike price (e.g. the ASK should be under the strike for Put options and the BID should be above the strike for Call options on FX currency pairs). Maturing at a price that exactly matches the strike (but does not go under or above) is considered as an Out-of-the-money (OTM) outcome.
  • At least one price update (tick) should appear between the moment of the opening of an option contract and the maturity of this contract. Otherwise, the option contract is cancelled without settlement (maturity without any trading gain or loss) and the contract amount  is returned to the client.
  • At the maturity of a Binary Option contract on FX currency pairs the relevant price determining if the option is ITM or OTM  is the price of the last available tick at the expiration, including the exact time of the expiration (the level of precision is the millisecond). For Daily Stock Options it is the CLOSE price of the trading session during which the order was in EXECUTING status. For Pair Binaries it is the relative performance of pair components that defines option's outcome. Relative performance is calculated by comparing the close price of the trading session during which the order was in EXECUTING status with the close price of the previous session.
  • The source of the underlying FX prices is the quotations available on Dukascopy trading platforms (SWFX Marketplace).
  • Confirmations of executions, partial fills and rejects are displayed electronically in the client reports. Dukascopy may charge fees for providing any other form of confirmation and account statement.

Abusive practices

  • The trading of binary options shall be individual. Any voluntary or involuntary coordinating, copying or grouping of trading orders by or between several clients on more than one client account, including but not limited to the use of trading signals, messenger, PAMM technology or collective trading decisions/orders placed on several client accounts at once, is regarded as a breach of the present Trading Conditions, in particular, a breach of the above exposure limits, and gives Dukascopy the right to cancel part or all concerned trades together with their associated profits and losses, at its entire discretion.
  • Dukascopy may, at its own discretion and without having to provide any justification, refuse to open an account or close an existing account, including but not limited when there is reasonable suspicion that any account is traced to the same contacts, IP address or/and demonstrated identical trading behavior. Such accounts may also be frozen, with the subsequent cancellation or reversal of associated profits and losses received through such accounts.
  • It is prohibited to attempt abusing Dukascopy binary trading platforms in an attempt to make illegal profits or to profit by applying practices such as price manipulation, exploitation of confidential information (insider trading), lag trading, time manipulation or by taking advantage of the server latency.
  • Reasonable suspicion that the client performed abusive trading such as, but not limited to, manipulations or insider trading, gives Dukascopy the right, at its absolute discretion, at any time and without prior written notice, to take one or more of the following actions:

• Restrict the client’s trading activity by applying individual trading conditions or suspending access to selected trading instruments.
• Temporarily or permanently suspend access to the trading account.
• Cancel or revoke any open or pending contract with associated profits/losses (if any) gained through abusive trading or the application of artificial intelligence in the trading account.
• Terminate the Agreement without prior notice to the client.
• Take legal action for any losses suffered by the company.

  • The rights described in this Section shall be in addition to any other rights which Dukascopy may have against the Client under any agreement or under applicable law.

Trading rescission

  • Trading on the Dukascopy binary platforms or partly on one or more binary instruments may be cancelled with no advanced notice. The client will have no claim or right of indemnification for damages allegedly caused by trading rescission, whether for carried out transactions or for transactions allegedly intended to be carried out.
  • Trading rescission may be applied either to all trading accounts at once or on individual basis.
     

 


Contacts   Hot Links   Search
Site Map
Report an issue
© 1998-2017 Dukascopy® Bank SA

On-line Currency forex trading with Swiss Forex Broker - ECN Forex Brokerage,
Managed Forex Accounts, introducing forex brokers, Currency Forex Data Feed and News
Currency Forex Trading Platform provided on-line by Dukascopy.com

An error correcting system is functioning on our website. If you find a mistake you are able to send us a notification.
Simply highlight the error and press Ctrl + Enter and then follow the instructions.