In the optionFair guide, we take a look and give a few pointers on how to make profits by trading binary options with optionFair. Binary options offer a fast payout in a short period of time, which is why they are fast gaining popularity. optionFair is one of our “recommended binary options trading broker“. Read the optionFair review here.
Before we get into the details, traders, have your credit card ready. Click here to create an account with optionFair and once you make your deposit, come back to read the rest of this article. And don’t forget you “get additional bonus up to 35%” on whatever amount you deposit. Binary options traders, especially those who are new, must bear in mind that while binary options trading, also known as fixed risk trading offers, high potential to profit from the financial markets, it does involves a bit of knowledge on the assets you trade and the prevailing market conditions. In the optionFair guide, we list out the three primary types of binary options available with optionFair and explain how each of these types of binary options works.
The binary options trading tips has been designed bearing in mind the optionFair trading platform. While the options trading tips can be used with any binary options broker, this tutorial deals specifically with the optionFair binary options trading platform. optionFair is unique in being the only platform which allows the trader to invest in both sides of the pricing range, ensuring fairness in pricing and creating more profit opportunities.
optionFair Guide – Types of binary options trading
optionFair offers three kinds of binary options trading as mentioned below. There are three factors that influence the outcome of a trade. The market price, target price and the expiry time. It is essential to understand some terminology before you start trading.
- Market Price, is the present prevailing price. The present price when you enter or open a contract.
- Target Price is the set price by the broker. This constantly changes and the target price is frozen when you enter or open a contract.
- Expiry Time is the time that is set when the contract expires. By default every asset has 15 minutes of trading time before the contract ends. So for example, if you choose an asset at 11:00AM which expires in 8 minutes, then this means that you can open a contract within 8 minutes. After the 8 minutes expire, your asset is frozen for 15 minutes. You can only sit and hope that your trade ends in the money.
Optionfair Guide Tip: Timing is thus essential when you enter or open a contract as it defines the criteria for your success.
High/Low Options Trading
High/Low type of binary options trading is where you speculate whether the asset you trade will end up higher or lower at the present market or target price. For example, let’s assume you are trading the BP stock. When you click on the + button and the present market price is 452.776 and the contract expires in 15 minutes, then basically you speculate that in 15 minutes, the asset will end up higher than 452.77
High/Low Trading – optionFair
optionFair Guide – One Touch Trading
One touch options trading type of binary options trading is where you speculate whether the asset you trade will touch or not touch the target price. For example, if you are trading the crude oil asset, where the present market price is 98.660 and the target price is 98.815 and the contract expires in 15 minutes, and you select the ‘Touch’ option, then you state that at the end of the 15 minutes, the crude oil asset will touch the target price. One thing to remember is that it doesn’t matter if the target price exceeds the preset price range. As long as the price touches the target price, you are ‘in the money’
One Touch Trading – optionFair
Boundary Options Trading
Boundary option is a type of binary option that allows you to trade within a range. It is quite similar to One touch, but in boundary option, you have ranges. For example if you are trading crude oil asset with a market price of 98.700 and the contract expires in 15 minutes, you are shown the upper and lower prices of 98.828 and 98.597. You speculate that at the end of the expiry the asset will either end inside the range (within 98.828 and 98.597) or outside the range.
optionFair Guide – How to trade with optionFair
Traders can choose any of the three kinds of binary options trading available at optionFair. However, there are some subtle differences that traders need to bear in mind.
When and what assets to trade the High/Low option
Choose the High/Low kind of binary option when you think that the asset will end higher or lower than the market price within the time frame. The best assets to trade high/low include stocks such as Barclays, Google or Apple. You can also trade commodities such as Crude Oil, Gold. Currency trading under high/low is recommended only if you are sure of what you are doing.
With the High/Low option it is advisable to open your trades 15 to 30 minutes before expiry based on the chart analysis from the previous hour. Also take into consideration the prevailing market conditions that might affect the price of the asset.
When and what assets to trade the One Touch option
The one touch option is best defined with the statement, will OIL touch 98.825 price range in the next 15 minutes or not. The one touch option is best suited for commodities such as OIL, Gold which are not very volatile. By making use of economic indicators, there is a good chance that you can actually profit with one touch options.
When and what assets to trade boundary options
Boundary options are loosely related to support and resistance levels. As obvious, currencies are the best assets to trade and the probability of winning from boundary options are high if you can read the currency charts on a daily basis.
Bear in mind that the above tips should act as a general guideline. It is advisable that traders should develop their own strategies to trade binary options as there is no ‘one strategy fits all’
optionFair Guide – Quick Trading Tips
Above/Below options are now available for trading on weekends for the assets EUR/USD, OIL, FTSE, DOW JONES. Buy an Above/Below option choosing the direction you think the markets are moving. A successful investment will return between 210% – 350% depending on how far the target is from the Friday close.
Click here to read the optionFair trading tutorial. Make use of the optionFair guide trading tips and start trading binary options with more success!
