Binary option high low

binary option high low Types of Binary Bets HighLow. The HighLow binary bet is a type of binary trade in which the trader purchases a call option if he believes the price will end up above the strike price, or purchases a put option if he believes the trade will end up below the strike price on expiration. In order to execute a HighLow binary trade, the trader must do the following – Determine the asset he wants to trade. – Determine the strike price that will be used as the trade benchmark. – Choose a trade direction (“call” if he believes the price will end above the strike price and “put” if he believes the trade will end below the strike price). – Choose an expiration date.

– Pull the trigger. Again this seems easy, but ensuring that the actual trade ends in profit is not as easy. Just like we mentioned in one of our previous articles, some brokers will only allow a minimum expiry of at least 7 days, making it more difficult to ascertain what the behavior of the price will be. The image below is a snapshot of a typical HighLow trade in the binary options market From this image, we can clearly see the market price, which is 1.30208 for the EURUSD.

The aim of this trade is to predict if the price of the EURUSD will be higher or lower than this price at the expiration of the trade. The first step here will be for the trader to do some analysis, and then select his chosen price direction (High or Low). Once any of these buttons is clicked, the selection will be highlighted and the trader can then enter his staked amount, which in this example, is $100. The expected payout of this trade is 80%. So if the trader makes a profit (if he is “in the money”), then he will be paid $80 + his original $100 to make $180.

If he loses the trade, he loses his $100. On the right is a chart for the EURUSD which the trader can use to visualize is trades. Unfortunately, many brokers do not offer charting tools on their platforms and it is difficult to analyze the charts. As a binary options trader, how can you successfully trade the HighLow trade? Some analysts advocate the use of news releases to trade this type of binary option, but the truth is that this is not practicable for a number of reasons.

You can only use this on broker platforms that allow expiration days of between 3 hours to 3 days, as this is when the news effect is at its strongest levels. Attempting to use news events outside this time frame is unreliable. Even when you are allowed to use shorter expiry deadlines, the bet prices would have been adjusted so much that the payouts will be much smaller when compared to the staked amounts. It is preferable to aim for a risk-reward ratio of 11. Trades where there is more risk than reward are not very desirable.

That leaves us with the option of using technical analysis. The logic here is to use strategies that are determinants of price action, such as using chart patterns. If I were to trade a “High” binary, I would be looking for the presence of bullish reversal candlesticks, or bullish patterns such as double tops or ascending triangles.

Conversely, I would be using bearish reversal patterns or triangles if I am putting my money on a “Low” binary. With this in mind, the trader should proceed to download the trading platforms of brokers who offer forex, crude oil, spot metals and index futures on the same platform (such as FxPro) and use the charts to do their analysis. This adds more certainty to the trades. Many traders are usually tempted to gamble on the HighLow trades. Just like in other financial markets, there is no place for a hunch trade.

You cannot allow your money to run on the uncertainty of hunch trades. Use strategies that will clearly tell you where an asset is heading, and then you would be able to tell if the asset will end up as a “High” or on a “Low”. High Low Options Explained. High Low options contract is the flagship binary options contract.

Whether it is known as the CallPut, AboveBelow or UpDown binary options contract, the contract stipulation is the same the trader aims for a payout based on the correct prediction of whether the asset will end the trade above or below the strike price set for the trade. The strike price is usually the market price on trade entry, though a few platforms may allow the trader to set a different price level as the strike price. There aren’t many variants of the HighLow trade type. On the BOM platform, there is a variant known as the RiseFall trade, which uses the market price as the strike price for the trade as well as a HigherLower trade contract, which gives the trader the liberty to choose a strike price different from the market price.

Trading platforms such as that of Tech Financial partner brokers (24Option, OptionFair) offer both a HighLow and AboveBelow trade contract, corresponding to the conditions described for BOM’s RiseFall and HigherLower trade contract respectively. The HighLow trade contract is found on every binary options platform, so any trader who wants to trade it will have no problems locating a good platform to do so. Approach to a HighLow Trade. What is the proper approach to a HighLow trade for every beginner who is looking to make this trade theirs for the taking?

The HighLow trade is actually the easiest trade to profit from in the binary options market. It involves the use of technical and fundamental analysis to decipher whether the asset will head upwards (High) or downwards (Low), and stay away from market price until the price expires. The trick with this trade type is always in setting the expiry time. The 60 second trade, the Binary Meta and the OptionBuilder trade types found on the SpotOption and Tech Financial partner platforms are all HighLow trades with different expiry times. Getting the trade direction correct as well as setting a proper expiry are the two components of a binary options trade that must be performed correctly.

a) Predicting the Price Direction. Price direction of an asset is a function of performing technical analysis as well as fundamental analysis. Most of the HighLow trades that a trader will take in the market can be traded with technical analysis.

Indeed, 90% of the time, correct trade decisions can be made with technical analysis. It is only on very few occasions that selected news releases can be used to perform trade analysis and trade entries. A trader who understands the role of candlesticks, chart patterns, pivot points and technical indicators in the market will be able to determine the price direction of that asset. Many binary options platforms freeze up when the news is released. As a beginner, you should concern yourself with understanding how the four aspects of technical analysis just mentioned affect the price of an asset.

b) Setting Expiry Times. You can get the direction of the asset 100 times out of 100 and still lose money on the trade. This is because the trade expiry is a most important variable that a trader must also factor in when trading binary options. All binary options trades have time limits.

Some brokers will allow you to set your time limits while others fix it for you. This is the case when trading with the SpotOption or Tech Financial partner brokers. The advantage that BOM has over these brokers is that traders are allowed to choose their own expiry times out of what is provided, and these expiries are a bit more flexible. How can a trader set a proper expiry time that is long enough to allow the trade move into profit zone, but short enough to stop any attempts by the asset to reverse this move?

The key is in the time frame chart used for the analysis. If for instance the trader uses a one hour chart for his trade analysis, the duration of the candlestick (which is one hour per candlestick) can give a clue as to the expiry time that can be set for the trade. The type of analysis can also give a clue to what expiry can be used. For instance, if the trader uses a breakout pattern to analyze the trade and the breakout candle closes well above the break point, the trader can use this information to intelligently predict how long the price of the asset will stay beyond the strike price. Ultimately, practice and experience gained from repeated trading using these principles will hone the trader’s skill and increase his success rate in trading the HighLow option.

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This official Scam investigation review sums up whether HighLow is a scam or not! Must Read This Before Creating an Account! Read the shocking truth!!

Min. Deposit Min. Investment Rating. HighLow Broker Review Writing a review about best binary option brokers or binary option robot website requires immense research about products, its applicability, users, users review, legal framework it is following, and the implication of legal framework in the home country and other countries.

A few days back, some of my readers had asked me to check out “HighLow”. This prompted me to go over the site and understand various legal and operational aspects of the “HighLow”. I opened a demo account which to my surprise was very simple than any other site I had visited, as it did not require any signup or information, and you can log in as a guest to trade with handsome $10,000 of virtual currency.

I took about 2 days to research and understand the legal and operational aspects of the site and its other functionalities. Finally, I am presenting my opinion of the site for your consumption in order to help you take an informed decision. HighLow Broker Review.

The binary options trading site HighLow is operated by an Australian company named “HighLow Markets Pty Ltd” and is owned by an Australian firm called “Realtime Capital Markets”. The company is registered with the Australian authorities and hold the Australian Company Number ACN-143-553-628 and the Australian Business Number ABN-85143553628 as a license. The company has also got a license (Australian Financial Services License No 364264) to operate financial services business from the Australian Securities and Investment Commission. The financial services license provides the company to perform financial services business in Australia.

The Australian Securities and Investment Commission outlines the laws and regulations for financial services with respect to processes the company needs to follow, staff’s educational requirements, the amount of risk a company can take and the processes related to management of risk, accounting standards a financial company should follow and various audit requirements, these all requirements need to be followed by a registered organization (HighLow) to continue business on the Australian territory. Besides providing binary options trading services to Australian traders, the company also allows binary options traders from Africa, Europe, and the Middle East. Unluckily, the binary options traders from the United States of America cannot trade into it. If you are interested in binary option trading, why don’t use free trading tool, binary option robot, get it for free by clicking the picture below. If you are interested in binary robots, read also these related articles The Website and the Platform.

When you open the site, the combination of black background and orange shades catches your eyes giving you a feel of the corporate look. The homepage of the website prominently features the carousel incorporating various asset options, durations, and a transient screen. The transient screen provides information about various distinct features of the site.

The assets are represented with the charts and payout options for a particular asset type along with the trading time period. Even though the website offers an ease of navigation and corporate look, the site compared to its competitors gives a feeling that it lacks some of the eye-candy features like deposit options, platform information, withdrawal options, accreditations received, and customer review. The navigation in the site from one screen to another is very easy and can be comprehended with a little or no practice.

The website seems to be designed with “Keep it Simple, Stupid!” (KISS) concept to provide ease of access and relevant information like frequently asked questions, operational information on how to trade, opening an account, opening a demo account and choice of language. The website has two language preferences including Japanese beside English. The website is well laid and developed to give a sense of easiness and simplicity.

The site offers various binary options through the carousel, which makes the selection of options very easy. High Low Education and Guidance. The trading tabs provides clear understanding and information regarding choosing an asset which includes 17 currency pairs (AUDJPY, AUDNZD, AUDUSD, CADJPY, CHFJPY, EURAUD, EURAUD, EURJPY, EURGBP, GBPAUD, GBPJPY, GBPUSD, NZDJPY, NZDUS, USDCAD, USDJPY and USDCHF), 1 precious metal (Gold), and 5 stock indices (AUS200, HKG33, JPN225, UK100 and US30).

Although, the site provides very easy navigation, the lack of educational material and resources will restrain the newbies of the binary options to be attracted to the site. The HighLow site has compensated the lack of educational resources with very easy demo option, which provides one-click direct demo access to anyone willing to explore the binary options trading without any prerequisite such as registration. It is my regular practice to suggest to use demo account or free account trading for some time before jumping on to real money account to a newbie of the binary options trader. The site offers basically two trading options HighLow (digital) and Turbo (on demand), both the options are available with spreads and various payout scenarios ranging from 80 percent to 200 percent of invested amount. The HighLow options can be traded with visible expiry time for a frequency of 60 seconds to 1-day.

The lower end of expiration time available on the HighLow is very suitable for intraday or day traders and provides an opportunity to trade for 5 minutes or even less. This means the site targets a specific group of traders and the platform may not be suitable for long-term traders. The platform offers variable spread which moves closer near the expiry of the trade, which gives a little tighter control over the result. It provides a high-risk high-return environment for traders as it offers a payout of 100 percent or higher.

The spread options can make any trader’s adrenaline rush to hit the roof. High Low Guidance to Traiding. The website uses one of the prominent binary options trading platform Market Pulse to provide smooth user experience, whereas the company has entered into an agreement for the data stream with a company called Leverate. Leverate is a well-known name in the data streaming services and it is known for providing safe and secure data to their clients.

The platform provides the overall sentiment of the market through traders’ choice option which gets enabled after four trades and delivers running sentiments of the online traders. Normally, I recommend my readers not to use the advice of the broker to trade in the case of HighLow, it will not be an issue as it is being regulated by Australian authorities which do not authorize HighLow to provide advisory services to its client. Also, the website doesn’t have any auto trading facility, so if you are a non-professional trader then I would recommend you to use option signals services from the professional signal service provider, or comprehend the strategies better before commencing the binary options trading. To trade on the HighLow website, you also need to understand various exposure limitations and the amount of max position in a single option is allowed. Unlike, other platforms which have low restrictions, The HighLow platform has some trading restriction on maximum amount which can be traded and the maximum amount of exposure one can take (please see the table below).

The company also offers mobile applications for both android enabled smartphonestablets and IOS enabled smartphonestablets for ease of trading. This provides a complete mobility to the people who are always on the move and prefers mobility and trading on the go. highlow main page. Deposits and Withdrawals.

The company offers various deposit methods including credit card, Neteller and direct wire transfers from the bank. Unfortunately, as of now, it does not support the PayPal services for credits or deposits. One of the most admiring features for deposits is that it allows you to deposit as low as $10 to start the real money trading, such feature is offered by very few binary options brokerage house like IQOptions. The site only offers the deposition in the Australian Dollar (AU$), the US Dollar (US$), the Euro (€) and the Sterling Pound (£) dependent on client’s currency selection at the time of the registration.

Currently, the company offers deposition through Credit CardsNeteller wherein minimum deposit amount is $50, and Bank Transfer wherein the minimum deposit amount is $10 for AU accounts and $50 for rest of the currency preferences. In the same way, withdrawals are possible for as low as $10 via Bank Transfer and $50 for Credit CardNeteller. Though it does not impose a cap on withdrawal via bank transfer, the website has certain limitations for extraction through Neteller or Credit Card. Following table provides details regarding the amount and shows the nitty gritty of the payments and the withdrawals for HighLow. HighLow Deposits and Withdrawal.

The transfers in case of Credit CardNeteller happens in real time, while for Bank Transfer it requires 4 hours to 72 hours depending on your bank location. Though the company does not impose any charges on deposits, the company deduct 1.5 percent on withdrawal amount. The fees on withdrawal seem reasonable as it is lower than the median withdrawal fees charged by the binary options brokerage firms of the industry.

The company also charges $20 irrespective of the amount of withdrawal for wire transfers to an overseas or an international bank. The website also follows specific rules to safeguard the user data, one such example is that it does not save credit card or other financial information to safeguard the client’s details from unwanted online threats. The firmas well follow the rules and regulations set by the Australian Authorities and hence uses a trust account of National Bank of Australia to keep the moneys of their clients. This way it limits the misuse of your funds to hedge the positions. The broker uses its own funds to hedge the open positions instead of utilizing your funds to do so. The website offers easy and convenient signup with generic fields for the new customers.

The company requires you to put your name, email, country of resident, currency choice, date of birth, full address and asks you for your driving license or Medicare for an Australian resident to register on the website. Currently, the website offers cashback of $50 on the initial $50 worth of trading, and the most exciting part is that there are no caps of transaction volume to redeem the bonus amount, you can immediately redeem the funds to your trading account for the trading worth of $50. The first tab on the carousel of the site allows to you choose the regular HighLow option of binary options. These options have payouts up to 90 percent of the invested amount, this is quite competitive and is in the upper strata of industry standards, with the lowest possible investment amount of $10. If you are a swift trader and prefer a fast paced trading options than you will not be disappointed with HighLow as it provides various faster expiry options such as 60 seconds, 90 seconds or 300 seconds.

It is also suitable for professional traders as it provides a trading in spreads for various assets. This on-demand trading provides payouts up to 100 percent of invested amount. The combination of spread binary options and fast paced transaction can provide you paced adrenaline rush. Supports for customers. The benefit of a structureddealer is that there will be processes and instructions in place in the case should you require support from the HighLow team.

The corporation’s location is at Level 14, Macquarie House, 167 Macquarie Street, Sydney, NSW-2000, Australia. It is also heartening to see that the business offers service support to its clients over a phone (Australia 1300-870-442, Singapore 800-130-1608 and the United Kingdom 0800-048-8748). Though the company’s website is available in English and Japanese, it supports no other language which may be a big letdown for other language speaking clients.

Though the company provides detailed FAQ to resolve all your queries and support through email or phone, one of the most disheartening things is that it does not provide the web chat options. In an online scenario, web chat is one of the most convenient and faster options to resolve your queries and which is a must when real money is involved in it. The HighLow offers clear advantages specifically to the Australians, but when it comes to other nationality It seems restrained categorically for the United States citizens. The ease of operation on the site, the competitive cost of trading, the support system of the site, the processes it follows and regulated by the Australian authorities makes it one of the most sought after brokerage but no educational material on the site, no live chat option for support, and limited assets to trade restrict its demand. Also, the focus of the company seems to be a specific group of traders which makes it a restrictive site for long term traders (dealers who take more than 24-hour positions) and newbies. The limitations prompted me to check other top binary options broker like IQOptions and Banc de Binary, in order to provide comparative information.

The IQOptions has one of the most intuitive websites and provides learning tools for the newbies. It also has excellent payouts up to 91 percent and allows to deposit as low as $10. Also, it offers minimum investment trade of $1, which is the lowest investment amount allowed per trade by binary options broker. Though it offers a maximum investment per trade at $1000, it has lowest trading amount per option trade is as low as $1, making it the best retail binary options broker. It offers a choice of accounts like the free account, the real account and the VIP account with a plethora of services and options for the traders ranging from newbie to professional binary options trader. The another one is Banc De Binary, which is one of the oldest binary options brokers who has been around since 2009.

It is also known for its generous bonuses including up to 100 percent sign up bonus, referral bonuses, and surprise bonuses which are offered at a will by Banc De Binary. It also offers generous payouts ranging from 60 percent to 91 percent of invested amount. The minimum deposit starts from $250 whereas it allows trading as lows $1 per trade, while maximum investment amount is capped at $6000 per trade.

It also offers a variety of accounts to cater to the needs of varied types of consumers the micro silver accounts for beginners, the standard gold account for intermediate level traders, the personal management account for high-frequency professional traders and the premium account for full-time professional traders. The highlight of the Banc De Binary is that it offered a tailored account for Muslim traders termed as the Islamic trading account which is formed on the principles of Hibah. It also offers an intuitive trading platform with tools to learn the binary options trading for beginners.

It offers the highest possible resources about 200 to transact including currency, commodity, precious metal, stock indexes and stocks. Factoring in all the facets of binary options exchange, I would recommend choosing IQOptions for small dealers and Banc De Binary for the big time, professional traders. Though HighLow seems a good agent, but I would prefer IQOption and Banc De Binary because of their legality is already been tested for a longer period of time, and they have gained customer trust over a period of time.

They also offer a clear advantage in terms of a number of assets they offer, learning tools, intuitive websites, trusted trading platform, the regulation they follow and the customer service. Other Reviews For Reading IQ Option Review ( The ultimate trading platform, superb bonuses!) The World's leading Binary options provider. Choose high or low, receive up to 200% payout. Earn a $50 cashback when you trade.

HighLow. Its trading, streamlined. Withdraw funds quickly and easily using a range of methods, without any hidden terms.

Use our powerful iOS and Android mobile apps and trade wherever and whenever you want to. Industry-best payouts. HighLow offers payouts of up to 200% on your initial investment, quickly and securely. We do not use your deposits or your unrealised profits to hedge in the underlying market. Our highly skilled and dedicated support team are here to help whenever you need it. Licensed in Australia.

HighLow holds an AFS licence, issued by the Australian Securities & Investments Commission. Cash-back for new accounts. Capitalise without spending your money with a free cash-back of $50 for all approved accounts.

Binary options specialists. With many years of experience behind us, no one understands Binary options like HighLow. At 1235 will the EURUSD be higher or lower than it is right now? Experienced? So are we. Here&rsquos just a few reasons why you&rsquoll love HighLow.

$50 cash back (it’s free!) How do I get started. an AFSL (No.364264) The majority of brokers are based out of countries with very loose regulatory criteria that allow people with very little capital to start up brokerages, meaning that when under financial duress these brokers may resort to using trader capital to operate their businesses.

Lax regulation may also permit brokers to make it difficult for a trader to withdraw their funds when needed. Conversely, HighLow are regulated in Australia and hold an AFSL (No.364264), meaning that HighLow must meet stringent criteria in order to provide broking services. Get a $50 cash-back sign-up bonus.

Trade HighLow anytime, anywhere. At 1235 will the EURUSD be higher or lower than it is right now? Experienced?

So are we. Here&rsquos just a few reasons why you&rsquoll love HighLow. $50 cash back (it’s free!) Or learn as you trade with.

WHY TRADE WITH HIGHLOW? Withdraw funds quickly and easily using a range of methods, without any hidden terms. Use our powerful iOS and Android mobile apps and trade wherever and whenever you want to. Industry-best payouts. HighLow offers payouts of up to 200% on your initial investment, quickly and securely.

We do not use your deposits or your unrealised profits to hedge in the underlying market. Our highly skilled and dedicated support team are here to help whenever you need it. Licensed in Australia. HighLow holds an AFS licence, issued by the Australian Securities & Investments Commission. Cash-back for new accounts. Capitalise without spending your money with a free cash-back of $50 for all approved accounts.

Binary options specialists. With many years of experience behind us, no one understands Binary options like HighLow. This is a conventional Binary option that shows the mid price (also known as the at-the-money price). HighLow offers payouts of between 180% to 190% of your investment.

This option type suits the short-term investor who likes to trade on small movements or range bound markets. For more information about HighLow Products and Services, please refer to our PDS. This type of Binary option shows a bidask spread, the standard method of price making in the forex markets. Spread HighLow offers payouts of 200%, that is double your investment. This option type suits the investor who expects large market movements and prefers the higher payout.

For more information about HighLow Products and Services, please refer to our PDS. Turbo allows the investor to choose a time frame best suited for their investment. The duration of these options vary from 30 seconds to 5 minutes.

Turbo is highly versatile and flexible and suits traders who prefer to take advantage of short term patterns. For more information about HighLow Products and Services, please refer to our PDS. For the trader who prefers a maximum return (HighLow's 200% payout) and to enter trades when it suits them. Turbo Spread allows traders who are expecting large market movements to make the most of their positions.

Turbo Spread still incorporates a bidask spread as per HighLow Spread. For more information about HighLow Products and Services, please refer to our PDS. High Low Binary Options. High Low Binary Options. With the expansions of the binary options market on the web, there have been created multiple forms of this extraordinary form of trading, starting with the High Low type of options, which are now considered the standard selection when it comes to binaries in general.

High Low is the very basic and optimal form for investing, resolving around the sole premonition if a particular asset prize will change over time and conclude in the exact state forecasted by an individual trader. There are only two possibilities in a typical binary transaction and those are up and down whether the prize will rise or fall within a defined time frame and what comes after the date comes to expire. The upper stage will be represented by the call option and the downside stage is going to be signified by the put option. These can also be perceived as the high and low levels, hence the name of this binary form and what the sole process resolved around. Each and every single broker platform actively enabling the trades on the internet will have this section imbued into the framework, apart from other forms that also come with a built in application and individually based algorithm.

Either called Binary Options or High Low to differentiate other options of a binary nature into this process, the action will resolve around the same principles and basic elements that are being required from the users in order to manage the progress, thus creating a situation that has a 50% ratio for either success or failure. Several representative trading systems can be selectively diversified and followed, for significant purposes of investing and managing profits, so that every party involved in this process, could possible look forward into the beneficial resources that come along with the activity itself. binary option high low Subscribe to our daily newsletter and get the best trading signals and markets status updates. Start Trading with FBOS now. First Binary Option Service has been established by online trading professionals possessing solid practical experience of trading on financial markets.

The service provides a mass user with the opportunity to start working on the OTC market of Binary Options with the help of First Binary Option Service the leading Trading Platform. Today, First Binary Option platform is regarded as the most advanced platform and is optimized for simultaneous use by a large number of traders and investors. Option contracts of "High - Low" class are the easiest financial mechanism to use proposed by "First Binary Option Service". It is possible to use contracts of these types as in speculative purposes, and for partial hedging of risks a trader undergoes in the futures and options (Spot) market. Option contract of the type "One Touch" is a contract where price of the tool stays in "touch" with the selected level within a certain time period.

Terms and conditions of this option are very similar to classical barrier contracts typically used in European trading. Options of the type "One Touch" are subdivided into two contracts "Up" and "Down". Option contract of the type "No Touch" represents a contract where terms and condition specify that the price of the asset should not reach (Touch) the level, which you selected, within certain period of time.

Contracts of the type "In Range" are not subdivided into contracts "Call" ("Up") or "Put" ("Down"). You can buy a contract by clicking the button ("In"), if terms and conditions described in the trading terminal are acceptable to you. If conditions are not suitable, just do not enter into contract.

Contract of the type "Out Range" is not subdivided into contracts "Call" ("Up") or "Put" ("Down"). You can buy this contract clicking the button "Out", if the terms and conditions described in the trading terminal are acceptable for you. If these conditions are not suitable for you do not buy a contract. The operating principle of "60 seconds" class option contracts is identical to the "HighLow" type and differs only in terms of expiration. As the name implies, a fixed period of this option contract execution is one minute.

Green highlighting signalizes that the transaction is in the black at the moment, red highlighting means that your forecast currently is not coming true. Also the time remaining for option completion is displayed on the panel of current transactions. High Low Binary Options. As we have often mentioned in our articles, there are several different types of binary options each Broker has its own offer, that varies from Broker to Broker. This means that some Brokers will offer you some types of binary options, while others do not.

For this reason, knowing all the types of Binary Options is very important, so that you will be able to decide at which Broker you want to register. We will analyse the various types of binary options available in this article we are going to analyse the “High Low Binary Options or Up Down Binary Options”. High Low Binary Options or Up Down Binary Options. This is the Binary Option by definition, being the first type of Binary Option to be available in the market. Surely you will find this type of Binary Option at every broker.

With the HighLow Binary Option you have to make a prediction on the movement of the Prices firstly you have to choose an asset (Stocks, Commodities, Indices, Forex). Then you have to predict if the Price of the chosen asset will be higher or lower than the current Price after the Expiry Time (That you can choose from the ones available). If you think that the Price will be higher, you have to choose the Call Binary Option (Also called Up) whereas if you think that the Price will be lower, you have to choose the Put Binary Option (Also called Down).

After the Expiry Time, you will know if the Price is higher or lower and so you will know if your prediction was correct or wrong in case that your prediction was correct, you will earn the Payout (That is already fixed and that you know from the beginning) whereas if your prediction was wrong, you will lose the money invested (Or a part of them). Let’s say that the actual Price of a share of Google is $95 for us, the Price will rise and for this reason we buy the Call Binary Option for this asset, choosing the Expiry Time of 15 minutes. If after the Expiry Time, the price will be higher than $95, for example the Price will be $96,50 or just $95,01, our prediction is correct and we will earn the Payout. Whereas, if the Price will be lower of $95, for example $93,40 or just $94,99, our prediction is wrong and we will lose the money invested (Or a part of them).

Normally the value of the Price of an asset, is considered up to the Fifth or Fourth decimal for example if the Price is $95,1290, also the smallest variation of the Prices (For example $95,1291 or $95,1289) can lead our Binary Option In the Money (Paying) or Out of the Money (Not paying, so we will lose the money invested or a part of them). The Trading Online Guide, strategy to earn with Binary option and Forex Trading online. How to Succeed with Binary Options Trading in Estonia. Welcome to the largest expert guide to binary options and binary trading online. BinaryOptions.

net has educated traders globally since 2011 and all our articles are written by professionals who make a living in the finance industry. We have close to a thousand articles and reviews to guide you to be a more profitable trader no matter what your current experience level is. If you wish to discuss trading or brokers with other traders, we also have the world’s largest forum with over 20 000 members and lots of daily activity. Read on to get started trading today!

Top Brokers in Estonia. What is a Binary Option and How Do You Make Money? A binary option is a fast and extremely simple financial product which allows investors to bet on whether the price of an asset will go up or down in the future, for example the stock price of Google, the USDGBP exchange rate, or the price of gold. The time span can be as little as 60 seconds, making it possible to trade hundreds of times per day. Before you place a trade you know exactly how much you stand to gain if your prediction is correct, usually 70-95% – if you bet $100 you will receive $170 – $195 on a successful trade.

This makes risk management and trading decisions much more simple. The outcome is always a Yes or No answer – you either win it all or you lose it all – hence it being a “ binary ” option. To get started trading you first need a broker account. Pick one from the recommended brokers list, where only brokers that have shown themselves to be trustworthy are included.

The top broker has been selected as the best choice for most traders. If you are completely new to binary options you can open a “demo account” with most brokers, to try out their platform and see what it’s like to trade before you deposit real money. Introduction Video – How to Trade Binary Options.

These videos will introduce you to the concept of binary options and how trading works. If you want to know even more details, please read this whole page and follow the links to all the more in-depth articles. Binary trading does not have to be complicated, but as with any topic you can educate yourself to be an expert and perfect your skills. The most common type of binary option is the simple “UpDown” trade. There are however, different types of option.

The one common factor, is that the outcome will have a “binary” result (Yes or No). Here are some of the types available UpDown or HighLow – The basic and most common binary option. Will a price finish higher or lower than the current price a the time of expiry. InOut, Range or Boundary – This option sets a “high” figure and “low” figure.

Traders predict whether the price will finish within, or outside, of these levels (or ‘boundaries’). TouchNo Touch – These have set levels, higher or lower than the current price. The trader has to predict whether the actual price will ‘touch’ those levels at any point between the time of the trade an expiry.

Note with a touch option, that the trade can close before the expiry time – if the price level is touched before the option expires, then the “Touch” option will payout immediately, regardless of whether the price moves away from the touch level afterwards. Ladder – These options behave like a normal UpDown trade, but rather than using the current strike price, the ladder will have preset price levels (‘laddered’ progressively up or down).These can often be some way from the current strike price. As these options generally need a significant price move, payouts will often go beyond 100% – but both sides of the trade may not be available.

How to Trade – Step by Step Guide. Below is a step by step guide to placing a binary trade Choose a broker – Use our broker reviews and comparison tools to find the best binary trading site for you. Select the asset or market to trade – Assets lists are huge, and cover Commodities, Stocks, Forex or Indices.

The price of oil, or the Apple stock price, for example. Select the expiry time – Options can expire anywhere between 30 seconds up to a year. Set the size of the trade – Remember 100% of the investment is at risk Click Call Put or Buy Sell – Will the asset value rise or fall?

Some broker label buttons differently. Check and confirm the trade – Many brokers give traders a chance to ensure the details are correct before confirming the trade. No trader will be more successful than his or her broker is honest.

Trading in binary options is still not regulated well enough to be considered an established investment alternative, and so there are plenty of dishonest operators trying to take advantage of naive traders. Note! Don’t EVER trade with a broker or use a service that’s on our blacklist and scams page, stick with the ones we recommend here on the site.

Here are some shortcuts to pages that can help you determine which broker is right for you Compare all brokers – if you want to compare the features and offers of all recommended brokers. Bonuses and Offers – if you want to make sure you get extra money to trade with, or other promotions and offers. Low minimum deposit brokers – if you want to trade for real without having to deposit large sums of money.

Demo Accounts – if you want to try a trading platform “for real” without depositing money at all. Halal Brokers – if you are one of the growing number of Muslim traders. The number and diversity of assets you can trade varies from broker to broker.

Most brokers provide options on popular assets such as major forex pairs including the EURUSD, USDJPY and GBPUSD, as well as major stock indices such as the FTSE, S&P 500 or Dow Jones Industrial. Commodities including gold, silver, oil are also generally offered. Individual stocks and equities are also tradable through many binary brokers. Not every stock will be available though, but generally you can choose from about 25 to 100 popular stocks, such as Google and Apple. These lists are growing all the time as demand dictates.

The asset lists are always listed clearly on every trading platform, and most brokers make their full asset lists available on their website. Full asset list information is also available within our reviews. The expiry time is the point at which a trade is closed and settled.

The only exception is where a ‘Touch’ option has hit a preset level prior to expiry. The expiry for any given trade can range from 30 seconds, up to a year. While binaries initially started with very short expiries, demand has ensured there is now a broad range of expiry times available. Some brokers even give traders the flexibility to set their own specific expiry time. Expiries are generally grouped into three categories Short Term Turbo – These are normally classed as any expiry under 5 minutes Normal – These would range from 5 minutes, up to ‘end of day’ expiries which expire when the local market for that asset closes.

Long term – Any expiry beyond the end of the day would be considered long term. The longest expiry might be 12 months. While slow to react to binary options initially, regulators around the world are now starting to regulate the industry and make their presence felt. The major regulators currently include Financial Conduct Authority ( FCA ) – UK regulator Cyprus Securities and Exchange Commission ( CySec ) – Cyprus Regulator, often ‘passported’ throughout the EU, under MiFID Commodity Futures Trading Commission ( CFTC ) – US regulator. There are also regulators operating in Malta and the Isle of Man.

Many other authorities are now taking a keen a interest in binaries specifically, notably in Europe where domestic regulators are keen to bolster the CySec regulation. Unregulated brokers still operate, and while some are trustworthy, a lack of regulation is a clear warning sign for potential new customers. Strategies and Guides. We have a lot of detailed guides and strategy articles for both general education and specialized trading techniques. Below are a few to get you started if you want to learn the basic before you start trading.

You can find plenty more on the strategy page. Signals and Other Services. For further reading on signals and reviews of different services go to the signals page.

If you are totally new to the trading scene then watch this great video by Professor Shiller of Yale University who introduces the main ideas of options Education for beginners How to Set Up a Trade. The ability to trade the different types of binary options can be achieved by understanding certain concepts such as strike price or price barrier, and expiration date. All trades have dates at which they expire. When the trade expires, the behaviour of the price action according to the type selected will determine if it’s in profit (in the money) or in a loss position (out-of-the-money). In addition, the price targets are key levels that the trader sets as benchmarks to determine outcomes.

We will see the application of price targets when we explain the different types. There are three types of trades. Each of these has different variations.

These are Let us take them one after the other. Also called the UpDown binary trade, the essence is to predict if the market price of the asset will end up higher or lower than the strike price (the selected target price) before the expiration. If the trader expects the price to go up (the “Up” or “High” trade), he purchases a call option. If he expects the price to head downwards (“Low” or “Down”), he purchases a put option.

Expiry times can be as low as 5 minutes. Please note some brokers classify UpDown as a different types, where a trader purchases a call option if he expects the price to rise beyond the current price, or purchases a put option if he expects the price to fall below current prices. You may see this as a RiseFall type on some trading platforms.

The InOut type, also called the “tunnel trade” or the “boundary trade”, is used to trade price consolidations (“in”) and breakouts (“out”). How does it work? First, the trader sets two price targets to form a price range. He then purchases an option to predict if the price will stay within the price rangetunnel until expiration (In) or if the price will breakout of the price range in either direction (Out). The best way to use the tunnel binaries is to use the pivot points of the asset.

If you are familiar with pivot points in forex, then you should be able to trade this type. This type is predicated on the price action touching a price barrier or not. A “Touch” option is a type where the trader purchases a contract that will deliver profit if the market price of the asset purchased touches the set target price at least once before expiry. If the price action does not touch the price target (the strike price) before expiry, the trade will end up as a loss.

A “No Touch” is the exact opposite of the Touch. Here you are betting on the price action of the underlying asset not touching the strike price before the expiration. There are variations of this type where we have the Double Touch and Double No Touch. Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration (Double Touch) or not touching both targets before expiration (Double No Touch). Normally you would only employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels.

Some brokers offer all three types, while others offer two, and there are those that offer only one variety. In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types, traders are advised to shop around for brokers who will give them maximum flexibility in terms of types and expiration times that can be set. Trading via your mobile has been made very easy as all major brokers provide fully developed mobile trading apps. Most trading platforms have been designed with mobile device users in mind.

So the mobile version will be very similar, if not the same, as the full web version. Brokers will cater for both iOS and Android devices, and produce versions for each. Downloads are quick, and traders can sign up via the mobile site as well.

Our reviews contain more detail about each brokers mobile app, but most are fully aware that this is a growing area of trading. Traders want to react immediately to news events and market updates, so brokers provide the tools for clients to trade wherever they are. What Does Binary Options Mean?

“Binary options” means, put very simply, a trade where the outcome is a ‘binary’ YesNo answer. These options pay a fixed amount if they win (known as “in the money”), but the entire investment is lost, if the binary trade loses. So, in short, they are a form of fixed return financial options. How Does a Stock Trade Work? Steps to trade a stock via a binary option Select the stock or equity.

Identify the desired expiry time (The time the option will end). Enter the size of the trade or investment Decide if the value will rise or fall and place a put or call. The steps above will be the same at every single broker.

More layers of complexity can be added, but when trading equities the simple UpDown trade type remains the most popular. Put and Call Options. Call and Put are simply the terms given to buying or selling an option. If a trader thinks the underlying price will go up in value, they can open a call.

But where they expect the price to go down, they can place a put trade. Different trading platforms label their trading buttons different, some even switch between BuySell and CallPut. Others drop the phrases put and call altogether. Almost every trading platform will make it absolutely clear which direction a trader is opening an option in. Are Binary Options a Scam?

As a financial investment tool they in themselves not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest. The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers. The image of these financial instruments has suffered as a result of these operators, but regulators are slowly starting to prosecute and fine the offenders and the industry is being cleaned up. Our forum is a great place to raise awareness of any wrongdoing. These simple checks can help anyone avoid the scams Marketing promising huge returns . This is clear warning sign.

Binaries are a high risk high reward tool – they are not a “make money online” scheme and should not be sold as such. Operators making such claims are very likely to be untrustworthy. Know the broker .

Some operators will ‘funnel’ new customer to a broker they partner with, so the person has no idea who their account is with. A trader should know the broker they are going to trade with! These funnels often fall into the “get rich quick” marketing discussed earlier. Cold Calls . Professional brokers will not make cold calls – they do not market themselves in that way.

Cold calls will often be from unregulated brokers interested only in getting an initial deposit. Proceed extremely carefully if joining a company that got in contact this way. This would include email contact as well – any form of contact out of the blue. Terms and Conditions .

When taking a bonus or offer, read the full terms and conditions. Some will include locking in an initial deposit (in addition to the bonus funds) until a high volume of trades have been made. The first deposit is the trader’s cash – legitimate brokers would not claim it as theirs before any trading.

Some brokers also offer the option of cancelling a bonus if it does not fit the needs of the trader. Do not let anyone trade for you . Avoid allowing any “account manager” to trade for you.

There is a clear conflict of interest, but these employees of the broker will encourage traders to make large deposits, and take greater risks . Traders should not let anyone trade on their behalf. Which Are The Best Trading Strategies? Binary trading strategies are unique to each trade.

We have a strategy section, and there are ideas that traders can experiment with. Technical analysis is of use to some traders, combined with charts and price action research. Money management is essential to ensure risk management is applied to all trading. Different styles will suit different traders and strategies will also evolve and change. There is no single “best” strategy.

Traders need to ask questions of their investing aims and risk appetite and then learn what works for them. Are Binary Options Gambling? This will depend entirely on the habits of the trader. With no strategy or research, then any investment is going to win or lose based only on luck.

Conversely, a trader making a well researched trade will ensure they have done all they can to avoid relying on good fortune. Binary options can be used to gamble, but they can also be used to make trades based on value and expected profits. So the answer to the question will come down to the trader. Advantages of Binary Trading.

The world is filled with a plethora of financial markets, and advances in technology has made it possible for each of these markets to be accessible to the average Joe who has an internet connection and a computer or mobile device. As such, there may be some confusion as to what financial market to participate in. Forex has caught a lot of attention because the promises seen on the sales pages of forex brokers and vendors seem to point to it as a way of easy money. However, because this market has some peculiarities which traders must be thoroughly at home with, many unprepared traders have seen themselves at the wrong end of the market. This is where binary options come to the rescue with its unique set of advantages over other forms of market trading. Minimal Financial Risk.

If you have traded forex or its more volatile cousins, crude oil or spot metals such as gold or silver, you will have probably learnt one thing these markets carry a lot of risk and it is very easy to be blown off the market. Too many parameters affect trade outcomes that traders have to battle with. Things like leverage and margin, news events, slippages and price re-quotes, etc can all affect a trade negatively. This is why trading the currency and commodities markets is a risky venture. The situation is different in binary options trading.

There is no leverage to contend with, and phenomena such as slippage and price re-quotes have no effect on binary option trade outcomes. This reduces the risk in binary option trading to the barest minimum. Unlike what obtains in other markets, many brokers return a fraction of the amount used in purchasing contracts when the trade is a losing one. The binary options market allows traders to trade financial instruments spread across the currency and commodity markets as well as indices and bonds.

This flexibility is unparalleled, and gives traders with the knowledge of how to trade these markets, a one-stop shop to trade all these instruments. A binary trade outcome is based on just one parameter direction. The trader is essentially betting on whether a financial asset will end up in a particular direction. In addition, the trader is at liberty to determine when the trade ends, by setting an expiry date. This gives a trade that initially started badly the opportunity to end well.

This is not the case with other markets. For example, control of losses can only be achieved using a stop loss. Otherwise, a trader has to endure a drawdown if a trade takes an adverse turn in order to give it room to turn profitable. The simple point being made here is that in binary options, the trader has less to worry about than if he were to trade other markets.

Greater Control of Trades. Traders have better control of trades in binaries. For example, if a trader wants to buy a contract, he knows in advance, what he stands to gain and what he will lose if the trade is out-of-the-money. This is not the case with other markets.

For example, when a trader sets a pending order in the forex market to trade a high-impact news event, there is no assurance that his trade will be filled at the entry price or that a losing trade will be closed out at the exit stop loss. The payouts per trade are usually higher in binaries than with other forms of trading. Some brokers offer payouts of up to 80% on a trade.

This is achievable without jeopardising the account. In other markets, such payouts can only occur if a trader disregards all rules of money management and exposes a large amount of trading capital to the market, hoping for one big payout (which never occurs in most cases). In order to trade the highly volatile forex or commodities markets, a trader has to have a reasonable amount of money as trading capital. For instance, trading gold, a commodity with an intra-day volatility of up to 10,000 pips in times of high volatility, requires trading capital in tens of thousands of dollars. This restricts the access of everyday people to such markets.

However, binary options has much lower entry requirements, as some brokers allow people to start trading with as low as $10. Disadvantages of Binary Trading. Reduced Trading Odds for Sure-Banker Trades. The payouts for binary options trades are drastically reduced when the odds for that trade succeeding are very high. While it is true that some trades offer as much as 85% payouts per trade, such high payouts are possible only when a trade is made with the expiry date set at some distance away from the date of the trade.

Of course in such situations, the trades are more unpredictable. Lack of Good Trading Tools. Some brokers do not offer truly helpful trading tools such as charts and features for technical analysis to their clients.

Experienced traders can get around this by sourcing for these tools elsewhere inexperienced traders who are new to the market are not as fortunate. This is changing for the better though, as operators mature and become aware of the need for these tools to attract traders. Limitations on Risk Management. Unlike in forex where traders can get accounts that allow them to trade mini - and micro-lots on small account sizes, many binary option brokers set a trading floor minimum amounts which a trader can trade in the market. This makes it easier to lose too much capital when trading binaries.

As an illustration, a forex broker may allow you to open an account with $200 and trade micro-lots, which allows a trader to expose only acceptable amounts of his capital to the market. However, you will be hard put finding many binary brokers that will allow you to trade below $50, even with a $200 account. In this situation, four losing trades will blow the account. Cost of Losing Trades. Unlike in other markets where the riskreward ratio can be controlled and set to give an edge to winning trades, the odds of binary options tilt the risk-reward ratio in favour of losing trades.

In other words, traders lose more money when their trades end as losses than they can gain when their trades end up as profits. It is estimated that for every 70% profit that end up in profits, the corresponding loss of the same trade if it ends in a loss is 85%. The implication of this is that for a trader to break even, the winning percentage has to be at least 55%. It will therefore take a trader winning 6 trades out of ten to get into profit, but only 4 trades out of ten to end up in the red. When trading a market like the forex or commodities market, it is possible to close a trade with minimal losses and open another profitable one, if a repeat analysis of the trade reveals the first trade to have been a mistake. This scenario cannot be replicated in binary options – the moment a trader has placed a trade, the value of his equity in the trade drops to reflect the trade commissions taken off by the broker.

The payout on the reverse trade is fixed and cannot be used to cover the loss from the wrong trade. Spot Forex vs Binary Trading. These are two different alternatives, traded with two different psychologies, but both can make sense as investment tools.

One is more TIME centric and the other is more PRICE centric. They both work in timeprice but the focus you will find from one to the other is an interesting split. Spot forex traders might overlook time as a factor in their trading which is a very very big mistake.

The successful binary trader has a more balanced view of timeprice, which simply makes him a more well rounded trader. Binaries by their nature force one to exit a position within a given time frame win or lose which instills a greater focus on discipline and risk management. In forex trading this lack of discipline is the #1 cause for failure to most traders as they will simply hold losing positions for longer periods of time and cut winning positions in shorter periods of time. In binary options that is not possible as time expires your trade ends win or lose.

Below are some examples of how this works. Above is a trade made on the EURUSD buying in an under 10 minute window of price and time. As a binary trader this focus will naturally make you better than the below example, where a spot forex trader who focuses on price while ignoring the time element ends up in trouble.

This psychology of being able to focus on limits and the dual axis will aid you in becoming a better trader overall. The very advantage of spot trading is its very same failure – the expansion of profits exponentially from 1 point in price. This is to say that if you enter a position that you believe will increase in value and the price does not increase yet accelerates to the downside, the normal tendency for most spot traders is to wait it out or worse add to the losing positions as they figure it will come back.

The acceleration in time to the opposite desired direction causes most spot traders to be trapped in unfavourable positions, all because they do not plan time into their reasoning, and this leads to a complete lack of trading discipline. The nature of binary options force one to have a more complete mindset of trading off both Y = Price Range and X = Time Range as limits are applied. They will simply make you a better overall trader from the start .

Conversely on the flip side, they by their nature require a greater win rate as each bet means a 70-90% gain vs a 100% loss . So your win rate needs to be on average 54%-58% to break even. This imbalance causes many traders to overtrade or revenge trade which is just as bad as holdingadding to losing positions as a spot forex trader.

To successfully trade you need to practice money management and emotional control. In conclusion, when starting out as a trader, binaries might offer a better foundation to learn trading . The simple reasoning is that the focus on TIMEPRICE combined is like looking both ways when crossing the street. The average spot forex trader only looks at price, which means he is only looking in one direction before crossing the street.

Learning to trade taking both time and price into consideration should aid in making one a much overall trader.