Trading with Binary Options seems to be very simple. Even without experience it’s possible to understand the basics within a few minutes. When you still need to know these basics we recommend to take a look at our trading section here. In this article, we will show you step by step how to trade with binary options at 24option.
Simple High/Low option
A High/Low option is the fundamental of option trading. You can either select “high” when you think the price of the underlying asset will be higher than the current price at the expiration date or select “low” when you think it will be lower. That’s an overview for a typical EUR/USD High/Low option:
That’s the 24Option trading interface and every time you select an option from the menu below these details will appear. This is your home when trading with binary options. 24Option is one of the best brokers and you should take a look at it if you’re not trading at 24Option already. Click here to do so!
Let’s take a look at the left column:
The “question” you should answer is whether the currency pair EUR/USD will close over or below (high or low) 1.26868 at 20:45 when the option expires. When you’re buying a call-option you bet that the price will be over 1.26868 at 20:45. So in case it is 1.26869, you will make a profit. When you buy a put option you will make profit when it’s 1.26867 or lower. You don’t have to know the exact price at the expiration date. The only thing you need to know is whether the price is higher or lower. Once you have made your decision, you can type in the amount you want to bet:
Once you clicked on high or low and the Euro amount you want to bet you will see two possible returns. It’s either 85% or 0%. This means that when you bet 100 Euro you will either get 185 Euro or 0 Euro in return. There are assets and options where you will get more than 0% even though the option is out of the money. In this case you will see the returns as well. It all depends on the options you selected. EUR/USD is usually a currency pair where you can’t expect the best payoffs. In this case you don’t receive a refund of 10% for example for options that are out of the money. Everything you need to know is also visible at a chart like that:
The gray horizontal line indicates the current price. You will see the trend for the last 30 minutes. The red vertical line indicates the expiration date, in this case 20:45. The countdown on the left shows when the opportunity to trade this option will end. This is not a countdown for the expiration date (in most cases). It just shows when the option you currently selected won’t be available any more. There are 60 second options at 24Option as well and you better be quick in this case. 60 seconds is not a long time and you have to trade quickly.