Binary High / Low Options
Binary High / Low Options: Winning chances
High / Low Options are rewarded by all brokers with profits between 70 and 90 percent. The extent of the gain depends on the brokers’ business politics and whether or not loss coverage (usually 10 to 15 percent) is paid. Tendency is to pay lower profits when granting loss coverage; thus, profits can be much higher at 85 to (in some cases even) 92 percent when no hedging takes place. However, there are no rigid predefinitions, which is why traders should always take into consideration the overall trading conditions of a broker. Often, there is only one determined value that Digital High / Low Options can win. This profit can e.g. evenly range between 73 and 80 percent. This range is predetermined in regard to difficulty of speculation and remaining runtime by the broker.
How can the chances on High / Low Options be assessed?
Binary High / Low Options are admittedly the easiest type of options. Touch Options for example are much more difficult to determine and are therefore compensated with much higher profits (so-called High Yields). The simplicity of these options is reasonable: At maturity, the base value must have moved only slightly from the initial value in the right direction – theoretically speaking, one point or Pip is enough to generate profit. Once again, due to imprecisely determined course values it is not reasonable to argue over one point. If for example the DAX rises from 9,480 to 9,500 points – which is absolutely realistic – this small movement would cause the holder of a High Option (Call Option) a gain of 75 percent. Who believes in a particular trends can book Digital High / Low Options and calmly wait for the final outcome. If the trader has reached his or her goal prior to maturity, it is possible to secure a slightly smaller profit by Early Closure.