Opteck – Types of Binary Options

The CySEC-regulated binary options broker, Opteck, offers four different types of binary options trading instruments: Quick Options, High/Low Options, Range High/Low Options, and One Touch Options. You should understand the characteristics of each type of binary options and choose a trading instruments based on your preferences.

Quick Options

Quick Options are a type of binary options in which the expiration time is very short. They are sometimes called “short-term binary options” or “60 seconds binary options”. The traders predict whether the price of a financial asset will close higher or lower than the current price in a short period of time. The expiration time includes 30 seconds, 1 minute, 2 minutes, 5 minutes, 10 minutes, 30 minutes, and 60 minutes. The minimum limit for investing in a single option is $25.

Quick Options Example:

Let’s assume that a trader thinks that the price of EURUSD will close higher than the current price in one minute. The trader would like to invest $25. He enters the trade by selecting the upwards arrow. The payout for this trade is 64%.

If the price of EURUSD closed higher than its current price one minute later, the trader would make a correct prediction and the return on his investment would be $25 + $25 x 64% = $41.

If the price of EURUSD closed lower than its current price one minute later, the trader would make an incorrect prediction and the return on his investment would be $0.

High/Low Options

High/Low Options, also referred to as Up/Down Options, are the most popular type of binary options among traders. The traders forecast whether the price of a financial asset will close higher or lower than the current price at expiration time. Compared with Quick Options, the expiration time of High/Low Options is much longer. The expiration time ranges from 5 minutes to 3 days. The minimum investment amount for this type of binary options is $25 and the maximum investment amount is $10,000. If the trader’s prediction was correct, he will win; otherwise, he will lose his initial investment.

High/Low Options Example:

Let’s take the above figure as an example. A trader would like to open a $25 position with the asset EURUSD. He forecasts that the price of EURUSD will close higher than its current price at the time of expiration. The payout rate of the position is 83%.

If the price of EURUSD closed higher than its current price at the time of expiration, the trader’s prediction would be correct and he could make a profit. The return on his investment would be $25 + $25 x 83% = $45.75.

If the price of EURUSD closed lower than its current price at the time of expiration, the trader’s prediction would be incorrect and he would lose the investment. The return of the trade would be $0.

Range High/Low Options

In the Range High/Low Options, a trader makes a prediction on whether the price of an asset will expire in or out of the pre-determined range. The expiration time is predefined and the trader can select from a set of expiration times. The payout of the range high/low options is usually higher than that of high/low options. The minimum limit for investing in a single option is also $25.

Range High/Low Options Example:

Let’s assume that a trader opens a position with $25. The trader forecasts that the rate of oil will be inside the target rates at the time of expiration. The payout for this position is 100%.

If the current rate of oil was inside of the target rate range, the trader made a correct prediction and the return on his investment would be $25 + $25 x 100% = $50.

If the current rate of oil was outside of the target rate range, the trader made an incorrect prediction and the return on his investment would be $0.

One Touch Options

In the One Touch Options, a trader speculates whether the market price of an underlying asset will touch the predetermined price level prior to expiration time. This type of options has the highest possible return on investment among all binary options types.

One Touch Options Example:

Assume that a trader forecasts that the price of EURUSD will touch the target price. The trader opens a position with $25. The payout of the trade is 100%.

If the price of EURUSD touched the target price, the trader will win the trade and get a return on investment: $25 + $25 x 100% = $50.

If the price of EURUSD did not touch the target price, the trader will lose the trade and the return on his investment will be $0.

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