Category:High/Low options
High/Low options are the most common type of binary options trading. With this type of option, traders predict whether the price of an asset will be higher or lower than the current price at the expiration time. High/Low options are popular because they are simple to understand and offer a fixed payout if the prediction is correct.
To trade High/Low options, traders select an asset and choose an expiration time. They then predict whether the price of the asset will be higher or lower than the current price at the expiration time. If the trader's prediction is correct, they receive a fixed payout, typically between 60% to 95% of the initial investment. If their prediction is incorrect, they lose their initial investment.
High/Low options are popular because they offer traders a clear understanding of their potential profit or loss before entering a trade. This allows traders to manage their risk effectively and make informed decisions about their trades.
There are several variations of High/Low options, including:
Classic High/Low options: With this type of High/Low option, traders predict whether the price of an asset will be higher or lower than the current price at the expiration time.
Above/Below options: Above/Below options are similar to Classic High/Low options, but with an additional level of customization. Traders can set their own strike price, which is the price level the asset must reach for the trade to be profitable.
Call/Put options: Call/Put options are another variation of High/Low options. Traders predict whether the price of an asset will be above or below a specific strike price at the expiration time.
In conclusion, High/Low options are the most common type of binary options trading. They offer traders a simple way to speculate on the price movements of various assets and a fixed payout if their prediction is correct. It is important for traders to understand the different variations of High/Low options and their potential risks and rewards before engaging in binary options trading.
Pages in category "High/Low options"
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