Fixed Price Options is a type of binary option which is available for trading via the TechFinancial trading software. A select number of binary options brokers using the TechFinancial platform offer Fixed Price Options trading. Some of the brokers include 24Option and OptionFair.
Fixed price options may be explained using the concept of the strike price. Futures trading, just like options refers to contracts involving a trader and a broker or two traders. Despite the fact that many hold the opinion that the risk involved in this type of trading is too high, having an experienced broker and a well-planned investment strategy can help you make great returns from futures trading. Before you invest your money in this trading, it is pertinent to be aware of the risks associated with the trading.
As an investor, you can use a fixed price to trade any underlying assets through the stock options. The fixed price options allow a trader to buy and sell assets at a fixed price. Also, note that every transaction has an expiry time. Simply put, every call option that trades with a fixed price can be used for the trading process.
No Touch Options is a favorite binary option used by traders, but the option is fraught with a lot of risks because it involves predicting how the market will behave in a given time frame. For traders who can make a correct prediction of an asset’s price behavior, this option is a guaranteed method of making a lot of profits. With no-touch options, the longer the expiry time of the trade, the higher the profits that could be made, although the risks are considerably higher.
No Touch Options
The double no-touch options is most preferred among traders. In this option, the investor is guaranteed a specific payout if the price of the asset being traded exceeds the two barrier levels.
To use this options, investors and traders must pay a premium to their broker, and this allows them to choose their preferred barrier position, expiration time, and the payout that they will receive if the price exceeds or reaches the two barriers. The only expenses an investor will incur in the double no-touch options is the premium paid to the broker, and this is considered standard practice in binary trading, though you might win or lose some trades. Double One-touch options are gaining wide recognition among traders, particularly for trading Forex. Below is how the options is used for trading:
Assuming the USD/EUR is presently at the rate of 1.20, and you think it would remain the same for the next 20 days, you can use double no-touch options to set 1.19 and 1.22 as barriers, and you can help you make huge profits from this trade. The trader gets a stipulated payout if the asset’s rate does not touch the two barriers during the life of the options, but if it reaches any of the barriers, the trader gets nothing. It is clear that the trader wins if the rates fail or rise or remain the same, provided it doesn’t touch the two barrier levels.
The One-touch option is used in trades in which the investor wins if the price touches a specific point. In the one-touch options, traders make a win if they can correctly predict that the price will reach a support or resistant point within a specific period. Investors trading with the one-touch options must be able to predict if the underlying asset they want to invest in will reach strike price during termination time, upon which they will receive a preset payout that usually ranges from 250 to 400 percent. Traders who are confident that an underlying asset’s price will reach a certain point during the trading can make huge profits with this form of touch options. Another advantage of the one touch over other types of touch options is the huge amounts of returns you get if you predicted the price movement correctly.
For best results when trading with the one-touch options, trade assets during the weekends as the markets will be closed. One touch promises high returns on investment, and you can get as much as 500 percent payouts. Here is an illustration of how to use
Assuming you want to trade the Forex pair EUR/USD and the trade will close by 1:30 on Friday, the trading platform will provide the call option for people who want to bet that the EUR/USD will rise, and the put for traders who believe the rates will decrease. As a trader, you choose the option which you think is most likely and then wait till the termination of trading. If your prediction was correct, you get to win a very high payout.
One of the best things about the One touch option is that you can use it even when you are not sure of the asset’s price behavior. It is also risky because it involves a lot of guesswork, but the potential gain is worth it if you are correct.
One Touch options are a favorite of many traders, particularly in the commodity and Forex trading markets and are usually traded with a different price from the original market price. It is important to do a serious research of the markets before using one-touch options to reduce the risk of losing your investments.
A range option refers to an option in which the trader bets that the price of an asset will stay between two set levels or that the price will exceed one of the set barriers for a specific period. Binary range options is a type of new currency option which provides the risk profiles of assets to make trading easier. Binary range options offer traders a combination of barrier and digital options features which increases the chances of making a win. Range options are different from call/put options; they only offer traders a specific payoff if their underlying currency remains in a fixed option boundary. When trading with binary range options, the barrier levels are usually higher or lower than the spot price of the currency being traded.
This option is ideal for traders who believe that the price of a currency will be stable at a particular price. This enables them to invest a stipulated premium which guarantees a maximum return on investment irrespective of the type of trade they choose. Binary range options provide the traders’ insights that could help them reduce risks, thereby maximizing their profits.
Binary range options are simple to use and allow traders to calculate their profits easily. Also, it is highly structured and offers the trader the opportunity of capitalizing on any decrease in the price of the underlying currency even without a writing option. As a broker, binary range options gives you the privilege of selecting boundary levels that allows trading with options premiums so that your traders who have a light budget can also participate in the trading. Here is a depiction of trading with binary range options:
A trader wishes to buy a USD/EUR range options which are presently trading at the rate of 1.10. This puts your range between 1.00 and 1.20, and trading on the FOREX pair will terminate at 1.20. At termination time, USD/EUR option is exactly 1.29, and you opt for the “in the range option”. The implication is that you can only break free after the time has elapsed, and you are considered to be “in-the-money”. This type of transaction will fetch you a minimum return of 75 percent, which is impressive for both brokers and traders.
Rebate options, also called cash back are used by traders to reduce the price of the assets they buy. It is one of the things a trader chooses at the negotiation stage before buying an asset, and the other is reducing the interest rate of the trade.
Rebate options are used by dealers to woo trader into buying certain trades. During short transactions, shares borrowers also get the dividend portions and interests paid to shareowners and lenders.
If you wish to join a rebate options, contact your online broker for more information as there are different kinds of rebate option deals.
With rebate options, traders who have the options can get payouts even if the options were not successful. Barrier rebate options are monetary derivative products which terminate automatically when the price of the traded assets increase to a set price level. If this happens, options holders will get a refund of their investment.
Barrier rebate options can only be used if the price of the underlying assets will reach a set limit. Barrier rebate options can either be knock-in or knock-out. When it is a knock-in, the contract can be executed when the price of the traded assets increase or decrease below a certain price boundary. When it is a knock-out, this implies that the contract will be terminated automatically when the price of the traded assets increase or decrease below a predetermined boundary. Rebate options allow holders to trade in financial assets at prices set before specified future dates.
Barrier rebate options also give traders a refund if the trade was a knock-out. This type of options is, however, not common because it reduces the profit of the dealer. With the stiff competition ongoing in the binary options industry, traders can use the rebate options to reduce the cost and risk involved in trading binary options. You should always remember that binary options are a risky enterprise that could lead to loss of all your investments, so only invest money you can afford to lose.
This article may also be interesting: Become Proficient at Binary Options using A Demo Account.