|Binary Option Trading Guide|
An option or trade where investor can get a "predetermined" fixed payout if an underlying commodity expires at a price that is higher or lower than the original trade, provided that the selected option or trade expired within a range that is considered in the money. If you invest $100 in high/low binary option on Apple stock and let's say the payout is 75%. And you purchase the option, right when the price of Apple is exactly $500 per share.
At the expiration of this binary call option, if the price of Apple goes beyond this price, you are going to get $175, meaning you are profiting $75. If it goes lower, then you will lose your $100 investment.
It is a tool that gives you the opportunity to decide if the value of an "underlying asset" at expiry is going to fall inside or outside a given range which is separated by lower and higher target price limits. If you are to trade USD/EUR in Range, then what you need to do is to see if this currency trading is IN or OUT of the predetermined range of two parallel lines shown in the graph.
Next, you are going to decide if the asset is going to stay inside or outside the range. If the asset expires, most likely you will predict that it is going to stay inside the range, then select an IN option, you will get a payout if you are right while the asset expiration time arrives.
This option will let you take a predetermined fixed payout if the you chooses from two different possible outcomes. One of them is called "Touch". In order to be entitled to payout, it is adequate for an option to "touch" or exceed a predetermined level once throughout a given option/trade cycle. The initial investment will be lost if the expected level is not reached or surpassed at all.
The other one is "No Touch". In order to receive payout the asset cannot reach or surpass a predetermined level throughout a given option/trade cycle. If you chose to trade USD/JPY in "One Touch – No Touch", you will need to pay a close attention to see if this currency trading is Touching or Not Touching the predetermined line in the graph.
In the case of choosing “Touch”, and if USD/JPY touches the predetermined line, you are successful. However, you will lose if USD/JPY is not touching the predetermined line. Same logic goes for No Touch as well.
The 60 Second Trading:
The 60 Second Trading feature is only available to a specific platform. In this trading, traders are able to get the shortest option that is accessible in the trading world. What traders need to choose is their asset, the investment amount, a position.
Once chosen, they just need to click on "Start". Each click on START for a provided asset is going to start up a 60 second trade. The benefit of 60 second option trading is that it reduces the long expiry times by setting them to 60 seconds. Thus the traders will more chance to predict correctly the up-down trends compared to the regular trading methods.