Comparison of option types (1) – HighLow options

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Comparison of option types (1) – HighLow options

There are many types of binary options: Touch options and No-touch options, Classic medium-term high-low options which are offered by all brokers, KIKO options and many others.

But which one of these options is the best deal?

Why should you choose a broker based on the offered option types and expiration times? In today’s article, you’ll learn what high low options are and in the next episode, we will look at Touch and No-Touch options.

Classic high-low binary options

The concept of the classic options is surely notoriously known. Simply predict whether the price of the asset (currencies, a commodity or a stock) at a certain time rises or falls and a reward in the form of a profit of about 180% of the amount with which we traded is awaiting us. These options can be traded with the vast majority of brokers. Best brokers who allow trade in conventional high-low options include: IQ Option, Olymp Trade and Expert Option. What does such trade look like can be seen in the picture below.

This is how a CALL highlow option works

Broker Bonus Min Deposit Minimum Trade Amount Payout Demo US Traders Allowed Review Open Account
FREE DEMO ACCOUNT $ 10 $ 1 Up to 100 % !* Review Trade Now!
FREE DEMO ACCOUNT $ 10 $ 1 82 % for Standard, 90 % for VIP accounts* Review Trade Now!
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Spread binary options

The broker High Lows offers highlow options with a small modification and calls them spread binary options. Unfortunately, they only accept Australian Traders now

Broker Info Bonus Demo US Traders Allowed Open Account
Payout: Up to 100%*
Min Deposit: $ 50
Only for Australia Trade Now!

The strike price is moved (what is a strike price?) a little in our disadvantage. This means that the price has to do a bit more movement than the minimum to get to the earnings. The advantage is that the broker pays a higher income of 100%. Do you understand how a spread option and classic option differ from one another? For better understanding, check out the picture below and compare it with the picture above.

This is how Spread binary options work. Notice the higher earnings and offset strike price.

I think that with high low binary options there is not much to explain. It is really the simplest type of trading. In the next part of this miniseries, we look at touch and no touch options.

Advantages of classic options:

  • It’s sufficient for the price movement to be minimal and sometimes even one-hundred-thousandth (0.00001)
  • We have clearly defined how much we will earn or lose
  • These options are offered by most brokers
  • If options do not play out nicely, they can be extended using the rollover function sometimes
  • Sometimes, we can „sell out“ from the position, so we do not get into loss
  • We can use hedging

Disadvantages of classic options:

  • We are bound by the expiration time.
  • Lower appreciation compared to other types of options.

Author

More about the author Step

I’ve wanted to build a business of some kind and earn money since I was in middle school. I wasn’t very successful though until my senior year in highschool, when I finally started to think about doing online business. Nowadays I profitably trade binary options full-time and thus gladly share my experiences with you. More posts by this author

HighLow Review: Special Trading Assistant for Binary Options

Reviewed By Binoption

What Is HighLow

Regulation

Signup & Login

Option Types

Demo Account

Trading Platform

Mobile App

Cashback & Loyalty

Deposit & Withdrawal

Scam or Legit

HighLow Review: Special Trading Assistant for Binary Options

HighLow is a popular Australian broker which provides world-class service and assistance to its clients. In a short span of time, they have managed to become one of the leading binary options broker.

HighLow is owned and operated by HighLow Markets Pty. Ltd.

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They offer training through “Quick Demo” service.

A new trader who does not know how binary options trading works or how to place a trade, HighLow’s demo trading can be a great help for him.

Besides, it has taken being regulated seriously which is the evidence of HighLow’s willingness to be committed and fair in terms of conducting business and providing service.

In this review, we will go through the various key elements of this broker so you can be well-informed about their features.

HighLow Review – What Is HighLow?

High Capital Risk Is Involved In Financial Trading

HighLow is an Australian based broker which offers its service across the world including Europe, Asia, Africa and the Middle East.

It is regulated by ASIC and the registration number is 364264. Also, it has got its license from the Australian Securities & Investment Commission (ASIC) .

License (AFSL – 364264).

It is rather very strict to take initiative against any kind of scam activity to ensure the highest service to the traders.

In order to provide the best service, it uses MarketsPulse platform.

We will discuss this proprietary platform later in our review.

HighLow boasts over 11 million trades per month. Their payouts are one of the highest with a lot of variety in options for their traders.

Why HighLow?

HighLow is a broker that is dedicated to providing excellent service to their traders.

In an industry that is full of competition, HighLow manages to pull ahead of the pack.

We believe these features will help a trader to take a decision whether to choose HighLow or not as his broker. These specific features are –

  • Min Deposit AU $10 (For $AU Accounts) and US $50 (For $US Accounts)
  • Min Trade Size is AU/US $10
  • ASIC regulated broker
  • Up to 200% payout
  • Mobile trading enabled
  • Demo trading facility
  • Hassle-free withdrawals
  • Min Withdrawal $50
  • Quick Access funds
  • Cashback for new accounts
  • Segregated funds
  • Feature rich trading platform
  • 4 different types of options
  • Rich education section
  • Responsive customer support

HighLow Regulation

HighLow is one of the few brokers that are fully licensed and regulated.

You can feel confident trading with them knowing your funds are secure.

As mentioned above, HighLow is regulated in Australia and hold an ASFL (No.364264).

Their regulation is provided by ASIC, a strong reulatory body with stringent policies.

Another notable thing about HighLow is that all their clients money are held in segregated accounts in Client Money Trust Accounts with National Australia Bank (NAB), a regulated Australian bank.

This segregation ensures clients money are used for hedging purposes by HighLow.

HighLow does not initiate speculative positions in the market nor has any exposure to corporate debt.

HighLow Login and Sign-up

In this section, we will explain the sign-up and login process of HighLow broker.

HighLow Sign-up

The sign-up process of HighLow is quite simple and it takes only 3-5 minutes to get started.

These are the steps to sign-up for a real account: (No registration is required to use the demo account)

Visit the sign-up page by clicking the “Sign up” button below.

Provide the required details such as your country, full name, email address, and a password of your choice.

Next, you have to verify your profile by entering your complete address which incluses your street address, city, and state/province.

Enter your date of birth and mobile number to complete the verification process.

Read the terms of agreement and comply with them and submit them.

The final step involves submitting a photo ID such as driver’s license/passport and a secondary ID such as bank statement or any utility bill.

HighLow Login

Once you have successfully completed the Sign-up process, you can login to your account.

You need to enter your userID or your email address and password to login to the platform.

In case you forget your password, you can retrieve it by providing your email.

High Capital Risk Is Involved In Financial Trading

HighLow Option Types

HighLow offers 4 different types of options to their traders.

This kind of versatility allows traders flexibility and choice.

Let’s take a look at the different types of options.

HighLow Options are the most common form of options trading. You can trade forex pairs, commodities, indices, and more.

The payout percentage varies from 180% to 190%. This type of option is best suited for short-term investors who open small positions.

This type of options involves bid/ask spread, similar to that ofthe forex market.

The payouts in spread highlow reach 200%, which is practically twice your investment. This type of options is suitable for traders who are large market movers expecting big payouts.

Turbo Options focuses on short time intervals ranging from 30 seconds to 5 minutes. Traders who can take advantage of shorter time intervals should take advantage of this option.

Turbo Spread is similar to highlow spread where the traders can enjoy maximum return (up to 200%).

Large market movers will prefer this option type.

HighLow Asset Index

Currently, HighLow offers 34 different assets. You can trade these assets as binary options in HighLow’s trading platform.

However, when you are trading turbo options and turbo spread, you only get to trade 7 currency pairs.

Let’s take a look at the different assets offered by HighLow

17 Currency Pairs

  • AUD/JPY
  • AUD/NZD
  • AUD/USD
  • CAD/JPY
  • CHF/JPY
  • EUR/AUD
  • EUR/GBP
  • EUR/JPY
  • EUR/USD
  • GBP/AUD,
  • GBP/JPY
  • GBP/USD
  • NZD/JPY
  • NZD/USD
  • USD/CAD
  • USD/CHF
  • USD/JPY

10 Indices

  • AUS200
  • HKG33
  • JPN225
  • UK100
  • US30
  • CHN50
  • FRA40
  • GER30
  • NAS100
  • SPX500

4 Cryptocurrencies

  • Bitcoin
  • Ripple
  • Ethereum
  • Litecoin

3 Commodities

  • GOLD
  • UKOIL
  • USOIL

HighLow Demo Account

HighLow offers quick demo to new traders.

You can try their demo account without even registering for an account.

Anyone can try quick demo and learn binary options trading.

A trader will get the same taste, experience and thrill through this demo version.

Every demo account holder will be provided $10,000 virtual currency to place trade.

The demo platform is exactly similar to that of the real trading platform. Traders get access to all the trading assets as well as the features of the platform.

High Capital Risk Is Involved In Financial Trading

HighLow Trading Platform Overview

Let’s discuss HighLow’s trading platform now. They offer their proprietary trading platform which is available for both desktop and mobile.

We will disucss about mobile trading in a later section. For now, let’s take a look at the desktop app.

When you enter the web platform, you’ll be greeted with a good looking user interface.

On the top, your account balance and cashback balance are displayed.

Just below that, you have the option to choose from any of the 4 option types. Depending on your selection, your asset list will be displayed.

The assets are sorted on the basis of expiry times.

The trading hours are from Monday 9:00am – Saturday 8:00am AEDT.

The expiry times offered are: 15 min, 1 hour, and 1 day.

You can also favorite an asset so as to find it easily.

HighLow trading is a satisfying experience.

If you want to view all assets at once, click on the all assets and select from currencies, cryptos, indices, and commodities.

Under that. you will find the trading chart for the asset that you have selected.

The time interval in the chart adjusts to the expiry time that you have opted.

Placing a trade is quite simple in HighLow’s trading platform.

All you have to do is select your trade amount, click on the high or low button, and finally place your trade by clicking on the “Invest” button.

The amount to be placed in the trade can be input manually or you can select the pre-defined values of $50, $100, and $500.

Placing a trade has been made even easier with the help of one-click trading. You have to click on the green or red button to place your trade and that’s it.

In the bottom section, there is the current activity section which shows all your active trades. Unfortunately, there is no option to view your past trades.

High/Low Binary Options

This type of binary trade is the most common option used by traders and looks to gain from the direction of the market. A buyer of a call option believes the price of the underlying asset will push up and above a strike price set at the outset. Conversely, purchasing a put option is in the belief that the asset price will push lower and below the strike price. These are European style options where the price is required to be above or below the strike at expiry.

The alternative would be to buy or sell the underlying asset, and where the binary high/low option sets out the amount of risk and reward at the outset, a straight forward spot buy or sell can achieve the same risk limit by using a stop loss. The reward however is unlimited, as the price can go higher or lower beyond traders expectations.

What to do if you want to trade a high/low option

If you do decide to try and trade direction through high/low options, the following steps apply:
Decide on the asset you want to trade – naturally.
Decide on the strike price, as this will be the level you believe or expect price to ‘close’ above or below at the end of expiry.
A call is purchased if you believe the price will end up above the strike price at expiry and a put if it you think it will be below the strike price.
Decide when the option will expire – what time you believe your direction or move will be achieved in.

Placing the trade is simple enough, but as well as getting the direction right, the timing is also an added consideration. Some brokers may limit your choice of timing by only offering a minimum expiry of 7 days or 1 week. Naturally, it is more difficult to ascertain what will happen to the price over this length of time. You may also have a view on the market or price on a shorter or longer time frame. A choice of expiry periods is preferable.

How you can be successful with high/low options

Just as you would have to keep in touch with the latest news and data when holding positions in the underlying assets, so the same would seem to apply with binary options. However, with a European style option, once the trade is placed, payout will only be achieved at the end of expiry if the direction and timing is successful. In this instance, a traders ‘hands are effectively tied and there is little he or she can do over a rigid expiry period. If the broker platform allows expiration dates of between 3 hours and 3 days, then traders have more reason to react as the option will be more dynamic – a shorter expiry period is more dynamic. The effect of news on prices is at its strongest during this shorter periods. In these instance, when data and news are plentiful, it may be more beneficial to trade the underlying using stop losses – one can benefit from the volatility also.

So can strategy be used with high/low options? Yes, as it is based on you directional view. Technical analysis is can be applied, as it is a strategy that is dependent on price action. Charting and pattern recognition can be an excellent tool. Just as you would in standard trading positions, you would need to pay attention to any bullish reversal candlesticks, or bullish patterns for example. There are a number of binary options brokers who offer downloads of trading platforms that include Forex, crude oil, spot metals, and index futures. They should preferably be offered on the same platform, and provide analysis through charts and related indicators. This will all add to the likelihood of trades being more successful as it would in all cases.

As in any form of speculation, traders can feel comfortable in choosing to trade through high/low binary options. Much like in any other financial market or asset, guesswork is not the best way to approach trading. Yes, it can work at times, but you will be far more successful in the longer term with a good strategy in place – one that helps you get an idea of where an asset is heading, but with binary options, you will also have to determine whether the asset will end up on a high or on a low beyond your predefined strike price.

The benefits of trading high/low options

There are a number of benefits to trading high/low options when compared to trading regular Forex or stock markets. The main advantage here is that there is no need for either a stop loss or a take profit target. All a trader needs to focus on, once price and payout and loss has been determined, is the expiry date of the option. As soon as a trade is active, it cannot be changed or adjusted. This can be a positive thing as traders not be tempted to change their strategy or extend their stop losses. If you are a disciplined however, the flipside of this is that the binary option will give you a set amount if you are correct. When trading spot, the underlying asset, if you stick to a rigid stop loss, then the rewards can far outstrip the risk (amount of stop losses in money terms), perhaps as much as 3 or 4 to 1.

High/low options can be applied to all market conditions. They can be traded in markets that are trending or moving sideways in a range. There is no need for the price to be trending strongly in one direction. All that is required is for the price to be a fraction higher or lower in order to provide a return. High/low options are perhaps more popular when there is strong trend or increased volatility. A higher level of risk, can be balanced out by higher payouts. If you believe the market will move strongly in one direction, binary options can be a very profitable based on the level of your strike price.

Trading binary options has become a very popular form of investment for a number of different types of trader. The fact that they are so simple has made them very popular for beginners also, and has attracted many new investors. But as with any form of investment, the risk of losing your money is ever-present, so it is wise to set out your strategy and what you hope to achieve with your trade, and whether binary options or standard ‘spot’ trading is better served to help.

Best Binary Options Brokers 2020:
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    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

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