Wynn Finance – Types of Binary Options
Wynn Finance binary options trading platform is developed to be easy to use and user-friendly. The broker offers a wide variety of binary options types: Hyper, High/Low, One Touch, Range, and Follow Leaders. Let us take a look at each type of binary options. Understanding their features will help you identify the right time and make better decisions when placing your trades.
High/Low is one of the most well-known type of binary options. It is also referred to as Up/Down options. When a trader trades High/Low options, he needs to predict whether the price of an asset will go up or go down within a predetermined time frame. If the trader believes that the asset’s price will go up, he chooses “HIGH”, whereas if he believes the price will go down, he chooses “LOW”. The expiry time ranges from 15 minutes to several months.
Let’s assume that a trader is familiar with currencies and would like to invest in the currency pair EUR/USD. The trader believes that the future price of EUR/USD will be higher than the current price in the next fifteen minutes. He placed a trade with $5 and selected “HIGH”. The predetermined payout rate for this trade is 81%. The return rate for this trade is set as 5%.
If the future price of EUR/USD was higher than its current price fifteen minutes later, the trader will make a profit and he will obtain $5 + $5 x 81% = $9.05.
If the future price of EUR/USD was lower than its current price fifteen minutes later, the trader will lose the trade. Since the pre-determined return rate is 5%, the trader can get $0.25 back.
Hyper is essentially short-term binary options trading. It includes 30 Seconds, 60 Seconds, 2 Minutes, 5 Minutes, and 10 Minutes. Hyper options are similar to High/Low options. A trader makes a prediction on whether the price of an asset will rise or fall by a predetermined expiration time. The minimum trade amount for Hyper is $5.
Let us assume that a trader believes the price of EUR/USD will rise in the next 60 seconds. He opened a trade with $5 and chose “HIGH”. The predefined payout rate of the trade is 65% and the return rate is 0%.
If the price of EUR/USD went up as predicted, the trader will make a profit. The return on his investment will be $5 + $5 x 65% = $8.25.
If the price of EUR/USD went down sixty seconds later, the trader made an incorrect prediction. The return on his investment will be $5 x 0% = $0.
One Touch is different from High/Low and Hyper. When a trader trades One Touch options, he needs to forecast whether or not the price of an asset will touch or surpass its target price before the end of the session.
One Touch Example:
Let’s assume that a trader thinks that the price of EUR/USD will touch or surpass the target price once before the time expires. The trader placed a trade with $5. The predetermined payout rate and the return rate for this trade are 81% and 5%, respectively.
If the current price touched the target price at least once, the trader could win the trade and get a return of $5 + $5 x 81% = $9.05.
If the current price did not touch the target price, the trader lost. Since the return rate for this trade is 5%, the trader can still get $5 x 5% = $0.25 back.
While trading Range options, a trader needs to forecast whether the price of an asset will finish inside or outside of a given range at the time of expiration.
Let’s take the above figure as an example. A trader predicts that the target price of EUR/USD will end up inside the predetermined range by the expiry time. He placed a trade with $5. The payout rate of the trade is 81% and the return rate is 5%.
If the asset’s target price finished inside the range, the trader made a correct prediction and the return on this investment will be $5 + $5 x 81% = $9.05.
If the asset’s target price ended up outside the range, the trader lost this trade and the return on this investment will be $5 x 5% = $0.25.
Wynn Finance provides traders with a special feature named “Follow Leaders”. It allows a trader to follow other experienced traders and mimic their trades. It is possible to see their win rate, profit, copiers, score, and trades. The trader can select whom he wants to follow. Please note that this feature may not be available for all traders, thus you may contact your account manager for further details.