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Saturday, 15 June 2019

How to trade high / low and its variations in binary options

How to use High / Low Options
Here is an example that can be observed from the use of both types of high / low options:

1. To trade with the type of high / low trading that has a strike price setting from the trader, you also have to take into account the level that can be a reference for future price movements. One example of the Binary.com trading platform will provide an overview of trading with this type of high / low variation:



On the trading platform, you can determine your own strike price as a benchmark price of up or down movements. Even though the EUR / USD value is currently at 1.2469, you are free to set the strike price at a level higher or lower than that price. For example, you set the strike price at 1.2473, and then choose a "higher" option to estimate the increase above the strike price level in 20 minutes. If then the price moves above the strike price of 1.2473, your option will end in-the-money. Conversely, if the price is still at a level lower than your strike price in the next 20 minutes, then that option can be said to end out-of-the-money.

Binary.com calls this high / low variation a type of higher / lower trading, to show the difference between this type of high / low trading and the type of standard whose strike price is determined by the market price. Higher / lower here at the same time marks estimates for prices that can move 'more' higher or 'more' lower than the strike price determined manually.

2. To trade with the type of high / low trading with the strike price determined by the broker, you can pay attention to the trading platform below:


On the trading platform above, it can be seen that the market price for the GBP / USD pair at that time was 1.61246. The strike price determined by the broker as the target is 1.61357, or higher than the current market price. Thus, you can choose the "above" option if you are sure that the price will rise to that level before the expiry time ends.

However, if the broker's target price is lower than the current market price, the option you can choose is "below". That is why, this type of high / low is referred to as the trading type above / below.


Trading Conditions for High / Low Options
Each binary options broker has different conditions for each type of trading he has. The type of high / low trading and various variations are inseparable from that. However, the most common type of high / low trading, which uses strike prices from market prices, usually does not have a specific provision from the broker. This is fairly reasonable, because this type of trading is indeed the basis of binary options trading itself.

The type of high / low strike whose price is not determined by the market price has several special conditions, restrictions, and features. For example, for higher / lower types of trading on Binary.com the minimum expiry time is different from expiry time on other types of trading. If the type of trading high / low standard (rise / fall on Binary.com) can be run with a minimum expiry time of up to 1 minute, you will only get a minimum of 15 minutes at a higher / lower level. In addition, this type of higher / lower trading also does not have a "Start Time" facility that allows you to hold the opening of option positions within a certain period of time. This feature specifically exists only in trading rise / fall types at Binary.com brokers.

Conversely, the type of trading with the strike price determined by the broker is actually facilitated with a very high return profit. Even though you cannot determine your own strike price with this type of trading, you will get a return on profits of up to hundreds of percent. This is certainly very profitable, because the maximum return profit for ordinary types of trading does not reach 100%. However, this type of trading can only be carried out when market volatility is high. Usually, a new broker will open access for this type of trading at 17.10 WIB, or about 3 hours before the opening of the New York market.


Benefits of trading with high / low options
In general, the benefits of trading with this type are:

1. Trading becomes easier because you don't have to bother putting up a stop loss or take profit level. By setting the strike price, direction of the option, and expiry time, the position of your trading option will be executed automatically. You do not need to worry about trading positions that are floating or the trading balance is getting thinner. All of that can be arranged in advance through money management which is applied to capital calculation and profit return.

2. Trading psychology will be more awake, because you will not be able to change the position of an option that has been previously set. Whatever happens, the option position will continue to take place according to the command option you arrive atexpiry time is up. However, that does not mean you cannot cover losses on options that seem to be out-of-the-money. There are many strategies in binary options, including hedging, which can anticipate the loss of your binary options trading.

3. This type of trading can be applied to all market conditions. Both for uptrend, downtrend, or sideways, high / low options conditions and some variations can still be used to the fullest. Of course this will require a special trading strategy. But with the expiry time option, you can still reset your trading strategy so that your option position ends in-the-money.

4. With high / low options, you have the opportunity to earn profits in a short time. If you are interested in utilizing an offer from a binary options broker to trade with minute expiry time, you can take advantage of a 60 second to 15 minute strategy, which is structured to estimate price fluctuations in just minutes.

Also Read : The Binary Options strategy uses Strategy Bollinger Ban

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