Call, put and expiry: how a binary options trade works step by step

The four choices you make

Every binary trade comes down to four choices:

1. Asset — for example EUR/USD or gold.
2. Direction — call (Higher) or put (Lower).
3. Expiry — when the trade ends.
4. Stake — how much you risk.

The platform fills in the strike price (the current price) and the payout.

A worked example

At 14:00 gold trades at 2,400.00. You expect a rise and buy a call with a 5-minute expiry and a $5 stake at an 82% payout.

• At 14:05 gold is at 2,401.20 → win, you receive $9.10 ($5 + $4.10).
• At 14:05 gold is at 2,399.40 → loss, you lose $5.
• At 14:05 gold is at exactly 2,400.00 → tie, most brokers return $5.

Expiry and timeframe are different things

The timeframe is how long each candle on the chart lasts. The expiry is how long your trade lasts. A common pairing is a 1-minute chart with a 5-minute expiry: you read the last few candles and give the move five of them to develop.

Choosing an expiry

Shorter expiries mean more trades per hour — and more chances for the break-even maths to grind your balance down. See the break-even calculator.