High/Low Binary Trading
If you've decided that you want to trade with binary trading, you still have more decisions to make. One of these decisions is to decide which type of binary option trading you want to do. The most popular of these choices is the up/down or high/low binary option trading. It can also be called the above/below binary trading option. Learning about high/low trading is a great way to get into binary trading and to get your feet wet in this field.
The theory behind up/down trading is just as it sounds. The investor is looking to predict whether the item, whether it is gold or another item, will go above (up) or below (down) in a certain amount of time. It doesn't matter what it is that you are trading; it is all done in the same way. The question is simply is the price of gold (for instance) will go up or down in a given amount of time. And this is high/low or up/down binary option trading.
More on Binary Trading
As you begin to look into high/low trading, here is what you'll need to do. First, pick an item that you will be trading and monitoring. Let's use gold as an example. Then, pick an amount of time that you want to use for the expiration. You might say that you are only monitoring this for four hours, or you might pick four days. Now, for the time that you've set, decide if you think the value of gold will go up or down in the amount of time that you already selected. Decide how much you want to invest in this binary trading and get started! It's really quite simple to use high/low binary option trading and to enjoy this type of trading.
The Up/Down Model
Now, of course, while we are enjoying binary trading, we also want to know how much money we can make with it. This type of binary option trading has payouts that vary a great deal. It will depend on what type of item you are trading, on how long a time you've set for the expiration and on the broker you've chosen. The payout for high/low binary trading can be as high as 70-85%. One other reason that this binary option is such a popular one is that it does have quite a high return if you've predicted well and done a good job. It's also, as you can imagine, a great way to get started with binary trading because it doesn't require extensive background knowledge, complicated formulas or any other detailed knowledge.
A Quick Binary Option Example
Finally, as a quick example, let's look at the gold example again. You see in the morning that gold seems to be trading lower than you've seen it recently. You decide that in one hour from now, gold will be trading at a higher amount than it is right now, and you place an investment of $100 on the prediction that the price of gold will go up one hour from now. In one hour, if the price of gold has gone up, then you'll get a return on your investment.