High Yield Binary Options

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

High Yield Binary Options

High-yield variations represent no particular trading types among the different binary options, but rather the high risk levels of individual types of options. Hundred percent profits are here possible – and indeed, the risk is equally high.

Binary options – high yield

If the profit margins move in the normal risk categories, depending on the broker, between 65 and 90 percent, 500 percent can definitely be achieved in the high-yield trading. This would mean that a profit with an input of only 10 Euro instead of the remaining 6.50 to 9 Euro even up to 50 Euro, could be reached. As with every financial instrument, exorbitant profit chances confront enormous risks, which also apply especially to the high-yield options.

Fig. High Yield is called one touch at anyoption

High Yield – only chosen option types

The exceptional types of trading in high-yield trading are also offered by several online brokers, such as for example, the one or no touch or the range options. With this, the particular variables, so the duration and the distance from the current market price of the base value or rather the span of the range, alter in such a way that the risk for the trader rises significantly. Therefore, the more distant the target price of a one touch option is, the bigger the profit margin. In the opposite case, the predefined market value with no touch options in high-yield trading lies closer to the actual market price of the base value, in order to decrease the profit chance and at the same time, increase the margin.

The duration in high-yield mode

Either the binary options of the high-yield class operate very shortly to generate a higher risk, or they operate over the weekend. If for instance, a big range in a range outside option is given, the chance that the market price abandons the range during the non-trading weekend, is very low. On the other hand, important decisions can be due on a Monday morning, which might expect an intense break. In this case, experienced traders who keep an eye on the different trading hours of stock exchanges, international stock exchanges and the current developments, can make enormous profits.

Binary options – high-yield variations for experienced traders

Even if the high profit quotes dream of quick money, the traders should always make themselves aware of the risks. Without the established analysis technology, professional facilities and extensive background information, no type of trading of binary options would be recommended, least of all the high-yield variables. Firstly, the most important basic concepts and processes should be perfectly controlled and various strategies should be developed in order to present the diverse possibilities in trading with binary options. The high-yield trading recommends itself for a particular challenge, if for example, the volatility strategy is followed around important news events. The intense price fluctuation can be used cleverly to open high-yield touch or range options.

Taking High Yield Binary Options

November 9, 2020 2:49 pm

Many binary options brokers offer one or more exotic trades. Knowing how to trades these with better results—particularly the high yield variety—will help you to increase your profit rates over time. There are two types of exotic trades that are used far more often than others: the one touch trade and the boundary trade.

As always, don’t forget that trading binary options can be very risky, and even with a strong strategy on your side, it is still possible to lose all of your trading capital. Our goal is to help you to overcome some of this uncertainty so that you have a better chance of making money over the long run. Practicing with a demo account will help you to smooth out the bumps before you risk real money.

Boundary Binary Options

With boundary trades, you will ultimately be choosing whether you believe the asset’s price will end IN the given range or OUT of it. With a high yield trade, the range will typically be large, and you will not be able to take a trade out that allows you to choose to stay IN the range. For high yield trades, only OUT options are available.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

This type of trade requires two different things to happen in order for you to be successful with them. One, there needs to be a lot of fast movement on the asset. Prices should be moving much more quickly than they normally do. Two, the price needs to stay out of the given range until the expiry.

If you want to be successful with this type of trade, you need to be able to discern whether or not your asset of choice will meet the two criteria. The higher the rate of return that you are given, the more worthwhile the trade will be, but the more difficult the range is likely to be to surpass.

To figure out when you should use boundary trades, you will need a chart, preferably looking at a timeframe more than five times as large as the time before expiry. For example, if you have an expiry that is one hour away, you should be looking at a price chart that shows at least five hours of data. Next, figure out whether the range has been broken in the past. If there is a history of boundary breaches, then the trade is more likely to be successful. Next, look into the future and see if there is any hope of the boundary being breached again. If the Fed, for example, has an announcement coming up, then that announcement could push the asset out of range. Combine all these factors and then estimate a likelihood of the required volatility occurring. If that outweighs your profits (this will be discussed below), then the trade is worthwhile.

One Touch Binary Options

Comparatively, one touch options are slightly easier to be correct with than boundary options. Because of the fact that the asset’s price only needs to touch the price once at any point during the life of the trade, you are simply evaluating whether or not this is possible. Volatility trending toward the given direction is the best way to determine this or not. Technical indicators that reveal this data will be your friend, here. Concepts like Bollinger Bands and Average True Range are strong methods of determining this.

Next, be sure that you are using strong charting tools and have followed the steps listed for boundary trades. Are there any events upcoming that could influence prices in your direction? This is a powerful tool at your disposal, so use it.

Strong volatility is a helpful tool, but the price still is subject to the general rules that the asset follows. This is why knowing a lot about the fundamentals of your asset in question and its history is a must here. Most binary options traders ignore these things often, but with one touch trades, they are very important.

Finally, be sure that you have enough time to achieve your goal. If you are expected a 10 percent change in price in 15 minutes, you are unlikely to ever be successful. If you are expecting a 1 percent change by the end of the trading day, and you followed all of the proper steps, this is far more likely.

A Final Word on High Yield Trades

In general, you will be wrong far more often than you are right when you are trading high yield binary options. This doesn’t mean that they cannot be the right choice, though. In order to be successful, you need to have a firm understanding of risk management. There’s a simple way to figure this out, which we will go over here. You need to know your rate of return and your expected rate of success. Let’s illustrate this with a quick example.

If you have a one touch trade on the EUR/USD that returns a 300 percent rate of return, you need to be able to be correct more than 25 percent of the time. If you risk $100, you will have $400 returned to you—your original $100 and $300 in profit. If you are correct 26 times out of 100, you will have made $7,800, and lost $7,400. That’s a profit of $400 over this period of time. Your goal then is to look at your rate of return and figure out how often you need to be correct in order to be successful. If that is possible given the difficulty of the trade, then the trade is worthwhile. If not, the trade should be avoided. Over time, you will learn to refine this skill a bit better. Using a binary options demo account will help you quite a bit in the practice department. As a general rule, the higher the rate of return, the less often you need to be correct for this to work. Brokers will typically make the goal harder to hit when rates are higher, meaning higher degrees of volatility are needed for your trading to be successful.

As you may have noticed, we have operated under the assumption that brokers will not post high yield trades unless they feel that they have an advantage. Most of the time, this is true, and they should be avoided thanks to that. Occasionally, you will find that this is not the case, and these are the instances where you should execute the high yield trades. You will still be wrong more often than not, but if you are calculating the odds of success correctly, then you will stand a better chance of generating a profit over time.

Conclusion:

We make it our mission to not recommend anything but the best – which, according to industry experts, is IQ Option, the top regulated broker for your country with a minimum deposit of ONLY $10!

  • FREE $10,000 demo account
  • Award-winning trading platform
  • Licensed and regulated broker

Types of Binary Options

While Binary options traditionally started out with the plain CALL/PUT options over time the different binary options contracts have evolved giving rise to different type of Binary options. The wide choice offered caters to different types of trader profiles and risk sentiment. Understanding the different types of binary options is essential for a trader before they blindly start trading one of the many types of options that are available. In this article, we explain the different kinds of option expiries in an effort to educate the reader about the same.

Types of Binary Options trades

Binary options can be broadly classified into the following types:

  • High/Low Options (the traditional CALL/PUT Options)
  • Touch Options (also known as One Touch Options)
  • Boundary Options
  • Short Term expiry Options

High/Low Binary Options

The traditional CALL/PUT option, trading High Low option is as simple as speculating if the price of an instrument will close above the price at which the contract was entered or if the price will close lower than the strike price. CALL/PUT options are one of the easiest of binary options to trade. They typically offer a return of 60 – 75% of the invested amount and there is a wide choice of expiry date and times to choose from.

Touch Binary Options

Touch options are further categorized into the following two types:

  • Touch/No Touch: In this type of Touch option, a trader speculates if the instrument will touch a specified price by the time the option expires. A trader can make two types of options. Choosing a touch option, a trader thinks that the instrument will touch the specified price by the time the contract expires. Likewise, a No-Touch option is selected when a trader believes that the specified touch price will not be attained.

The picture above shows a Touch Option being purchased. The trader expects EURUSD to touch 1.38786 by the time the option expires. If the target price is not achieved, the trader loses their invested amount and if it does, they stand to gain 175%.

  • High Yield Touch: A high yield touch option differs from the touch option in that a trader speculates if the market price will touch the broker’s target price before the expiry time.

The picture above shows an example of a GBPUSD High Yield Option. The trader placed a No touch option, meaning that GBPUSD is not expected to hit 1.68619 by 12:45 the option expiry time. If the trade is successful, the high yield touch option gives a whopping 300% return on investment while still keeping the investment risk capped to the amount invested.

Boundary Binary Options

With this type of option a trader can speculate if the price of the instrument will close within a range or within the boundary. The boundary option has three prices. Upper, Market and Lower and traders can place an IN or an OUT option. IN option specifies that the instrument will close within the upper range of the instrument and an OUT option specifies that the instrument will close in the lower range of the boundary.

The above picture shows a Boundary option with an expiry time of 11:30. So when a trader selects an IN option, they expect EURUSD to close within the boundary of 1.38754 and 1.38775. If an OUT option is selected, then the trader would expect EURUSD to close within 1.38754 and 1.38733.If the option fails to achieve its objective, the option is deemed to expire out of the money.

The returns available for Boundary option varies from one broker to another. (See Best Binary Options Brokers in our ProfitF table)

Short Term Binary Options

The short term option expiries are very fast paced and are not for the light of heart. It is possible to quickly lose all of your investment as it is very addictive but fun at the same time. Short term options come with a 30sec, 60sec, 2minutes and 15minutes expiry times. With short term options a trader speculates if price of the instrument will closer higher or lower than the market price at the time the contract expires. These are actually similar to high/low options but have a very short term expiry dates.

The different types of binary options offer different returns but the risk is always capped to the amount you wish to invest. There are many ways the above types of options can be traded depending on a trader’s risk profile and most importantly their trading strategy.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options: How To Start Trading
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: