# The most important technical indicators of binary options

Consider the following bets:

• Pay 45 USD to bet that gold will be higher than 1,700 USD at 1:30 this afternoon. If you win, you get 100 USD (profit 55 USD), otherwise you lose 45 USD.
• Now I have received $81, betting that the Nasdaq 100 index will fall below 8,600 at 2 this afternoon. If your prediction comes true, keep a profit of$81. If not, the loss is $19. • If the USD/JPY exchange rate is higher than 108 at 3 o’clock this afternoon, you can win 100 USD by paying 77 USD; if not, you will lose 77 USD. Welcome to Binary Options. All or nothing, one or zero, these securities are available on Nadex. Binary options allow traders to place time-limited conditional bets on predefined values ​​of stock indexes, foreign exchange, commodities and events. Like standard exchange-traded options, each binary option has an option fee ($45, $81, and$77 in the above example), a predetermined strike price ($1,700, 8,600 points, and 108 yen), and Expiry date (1: 30pm today, 2pm, 3pm). READ ALSO: Automatic practice The difference is that the settlement price remains fixed at$0 or $100, depending on the option conditions that are met. It keeps the net profit (or loss) fixed. The option premium is also kept between 0 USD and 100 USD. (Related: A guide to trading binary options.) ## Calculate probability Since binary options are time-limited and condition-based, probability calculations play an important role in evaluating the value of these options. It all boils down to “What is the probability that the current gold price of US$1,220 will rise to US\$1,250 or higher in the next four hours? ” The determinants include:

• Volatility (how much, is it enough to cross the threshold/strike price?)
• The direction of price changes
• timing

The technical indicators applicable to binary options trading should include the above factors. People can hold binary options positions based on the discovery of sustained momentum or trend reversal patterns. Let’s take a look at some popular binary options technical indicators.