What are High / Low Options? Highlow binary options present an essential element of binary options trading. These types of options give traders the opportunity to predict, if the price of an asset will increase within a pre-decided time frame, which ranges from a certain number of days to a whole year. Accordingto binary options quotes, in most cases, long term options trading activity has an expiry period of one week. This option is suitable for more experienced traders, who are intended to exploit their expertise and knowledge on the market by making a long-term investment.
How are High / Low Options traded?
This method of trading is the same as trading regular binary options:
Step 1: Choose an asset
Step 2: Choose a time frame/ Expiry period
Step 3: Determine the amount you are intended to invest
Step 4: Make a prediction that answers will the price rise or fall by the end of the trade?
Below are some beneficial attributes of High / Low Options:
Strategic Decisions – it makes your decisions less impulsive and reckless. These decisions are fuelled by analysis and assessment, instead of simply being a hasty guess. Traders who tend to choose to trade with Long-Term Options consider then less risky.
Emotion does not affect your decision – the adrenaline and excitement associated with short-term options does not cloud your judgment. With long-term options traders are obliged to look into the future of an asset and make a well-informed decision on its likely movements.
Maximum analysis carried out – long-term options give you the ability to exploit all possible market analysis instruments before coming to a decision. It is possible to assume that many of you have heard these options trading quotes that state that yearly and quarterly earnings reports will help make predictions on stocks, whilst monitoring asset’s movements over several months will enable you to predict their future performance more accurately. And it is hard to deny this absolute truth.
In conclusion, in this article we have familiarized with highlow binary options. Long term options trading has its advantages and disadvantages, that is why their utility depends on many factors in every particular situation.