CherryTrade Binary Options Types

The binary options broker, CherryTrade, provides traders with several different types of binary options. It is important for traders to understand the features of each binary options type and learn how to place trades on the CherryTrade platform.

Binary Options

It is one of the most popular binary options types. It is sometimes called “High/Low Options” or “Up/Down Options”. Here, a trader needs to predict whether the price of an asset will increase or decrease at the time of expiration. The expiration time is 15 minutes. If the trader made a correct prediction, he will make a profit; otherwise, he will loss the trade.

Binary Options Example:

Let’s assume that a trader would like to invest in the currency pair EUR/USD. The trader thinks that the price of EUR/USD will increase in the next fifteen minutes, so he opens a trade by entering $15 and choosing “CALL”. The payout rate for this trade, predefined by the binary options broker, is 70%. The refund rate for this trade is set as 10%.

If the target price of EUR/USD was higher than its current price fifteen minutes later, the trader will win the trade and make a profit. The return on the investment will be $15 + $15 x 70% = $42.50.

If the target price of EUR/USD was lower than its current price fifteen minutes later, the trader will lose the trade. CherryTrade provides traders with a partial refund if the trade was “out of the money”. The refund rate is 10%, so the trader can get $2.5 back.

Pairs

In the Pairs binary options, traders make a comparison between two financial assets. They need to forecast which one of these two financial assets will perform better at the expiration time.

Pairs Example:

Let’s take the above figure as an example. A trader chooses “GOLD VS SILVER” and opens a trade with $25. He predicts that gold will perform better than silver at the predefined expiration time. The payout rate for this trade is 70% and the refund rate is 10%.

If the trader’s prediction was correct, the trade will be in the money and the potential payout is $25 + $25 x 70% = $42.50.

If the trader’s prediction was incorrect, the trade will be out of the money and the protected amount is $25 x 10% = $2.50.

Long Term

The Long Term is almost the same as Binary Options except that the expiration time is much longer. Here, a trader makes a prediction on whether the price of an asset will go up or down at the expiration time. The expiration time includes one week, two weeks, one month, two months, and three months.

Long Term Example:

Assume that a trader opens a position with $25. The trader forecasts that the rate of EUR/USD will go up one week later. The payout of the trade is 77% and the refund rate is 0%.

If the target price of EUR/USD was higher than its current price one week later, the trade will be “in the money” and the trader can obtain a return of $25 + $25 x 77% = $44.25.

If the target price of EUR/USD was lower than its current price one week later, the trade will be “out of the money” and the trader will get $0 back.

Sixty Seconds

Sixty Seconds binary options are sometimes referred to as “short term binary options”. As their name indicates, the expiration times of Sixty Seconds binary options are very short. It includes 30 seconds, 60 seconds, 2 minutes, 3 minutes, and 5 minutes. Generally, traders make a prediction on whether the price of a financial asset will go up or down in a short period of time. The minimum trade amount is $5.

Sixty Seconds Example:

Let’s assume that a trader thinks the price of EUR/USD will go up in the next 60 seconds. He invests $5 and enters the trade by choosing the “CALL”. The payout for this trade is 70% and the refund rate is 0%.

If the rate of EUR/USD went up sixty seconds later, the trader will make a correct prediction and the return on his investment will be $5 + $5 x 70% = $8.50.

If the rate of EUR/USD went down sixty seconds later, the trader will make an incorrect prediction and the return on his investment will be $5 x 0% = $0.

One Touch

In the One Touch binary options, a trader forecasts whether the price of a financial asset will reach its goal rate. This type of binary options is available during the weekends and they can be purchased from Midnight on Saturday to 7:00 p.m. on Sunday. It attracts binary options traders who seek high payouts.

One Touch Example:

A trader predicts that the price of APPLE will touch the goal rate at least once within the next week. The trader opens a trade with $50. The payout and the refund rate for this trade are 500% and 0%, respectively.

If the current strike price touched the goal rate, the trader will win the trade and get a return of $50 + $50 x 500% = $300.00.

If the current strike price did not touch the goal rate, the trader will lose his investment and obtain a return of $50 x 0% = $0.

Ladder

In the Ladder binary options, traders can choose and trade with five different price levels within an asset. The price levels and payouts, as well as the profits, are prearranged by the binary options broker. Traders need to choose and determine whether the price of an asset will be above or below the predefined price level at the expiration time.

Ladder Example:

Let’s take the above figure as an example. It shows that the current strike price of EUR/USD is 1.08621.

Assume that a trader opens a $25 trade and chooses “BELOW” at price level 1.08602. If the trader’s prediction was correct, the return on his investment will be $25 + $25 x 196.97% = $74.24.

iFollow

The iFollow is a special feature offered by the binary options broker. It allows traders to follow the most experienced traders on the platform to place trades. Traders are able to see the rank, trader win amount, success rate, followers, and positions. If a trader decides to follow an experienced trader, he only needs to set the follow period (1 day ~ 1 year), max per trade ($50 ~ $3,000), and investment limit ($50 ~ $3,000).

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