Trader basics
-
Trader basics
- Instrument/Trading Platform Types
High/Low
This selection permits a trader to choose whether the asset will be Higher or Lower than the purchase price, at expiry. If you pick Higher and your trade ends Higher, you will gain a profit from the trade. If you select Higher and your trade ends Lower, your trading action will not make a profit.
One Touch
The Touch method lets traders choose whether the asset at expiry will have successfully touched or failed to touch the target price. When you choose Touch, your asset must reach the defined target price just once at any time within the trading cycle, in order to gain a profit. If you picked No Touch, then your trade must expire without reaching the target point at any point during the trading session, in order to generate a gainful profit.
Range (or Boundary)
The Range option gives the trader freedom to choose whether the price of an asset will settle Inside or Outside a certain price range, at expiry. Select Inside, and your asset price must settle within — or inside — the upper and lower limits of the boundary, in order to realize a profit. Choose Inside, and if your asset is Outside the upper or lower limit, then you will not see a profit from the session of trading.
- Returns and Refunds
The following parameters are common to all three instruments and Trading Platforms:
- All binary options offer a fixed return to the client based on a percentage of the invested amount.
- Binary Options which expire “in the money” will typically offer a gain of 70%-85% on the investment. For example, on an investment of $100 USD, the return would be $170-185 USD..
- Binary Options which expire “out of the money” will generally offer a 0%-15% refund of the investment. For example, an investment of $100 USD will receive a refund of $0-15 USD.
- Binary Options which expire “at the money” will be refunded in full.
For a more complete explanation about these possible results, read the following section.
- "In the Money" Expiry
Expiry “in the money” means the Option Trade is profitable. Trading at www.OptionsClick.com is considered “in the money” under the following circumstances:
High/Low
- High option – when the expiry level is above the target price.
- Low option - when the expiry level is below the target price.
One Touch
- Touch option – when market price reaches the target price before the expiry time. If this happens, the option will automatically and immediately expire “in the money.”
- No-Touch option - when the market price does NOT reach the target price before expiry.
Range
- In or Inside option/trade - when the expiry level falls within the range limits (i.e., above the lower and below the upper target price).
- Out or Outside option/trade – when the expiry level falls outside the range limits (i.e., below the lower or above the upper target price).
- "Out of the Money" Expiry
This means that the option/trade is currently not profitable. Options that expire “out of the money” yield a loss for the client. Trades at www.OptionsClick.com are considered “out of the money” in the following circumstances:
High/Low
- High option – when the expiry level is below the target price.
- Low option - when the expiry level is above the target price.
One Touch
- Touch option – when the market price does not reach the target price before expiry.
- No-touch option - when the market price reaches the target price before expiry.
Range
- In or Inside option/trade – when the expiry level falls outside the range limits (i.e., below the lower or above the upper target price).
- Out or Outside option/trade - when the expiry level falls within the range limits (i.e., above the lower and below the upper target price).
- "At the Money" Expiry
Expiry “At the money” means an option trade is currently trading at its target price. Options expiring “at the money” expire at their target price. When this happens, OptionsClick will refund the initial investment to the client. A trade at www.OptionsClick.com is considered “at the money” when:
High/Low
- High option - when the expiry level is the same as the target price.
- Low option - when the expiry level is the same as the target price.
Range
- In or Inside option – when the expiry level falls on one of the boundaries (i.e., the lower or upper target price).
- Out or Outside option - when the expiry level falls on one of the boundaries (i.e., either the lower or upper target price).
- Instrument/Trading Platform Types