Types of Binary Option
In addition to the standard Up/Down option on forex binaries, we offer two alternatives that can potentially offer greater returns and more freedom.
Up/Down
You simply decide if you think a currency pair is going to finish up or down on the previous day’s settlement price. If the forex pair finishes up, the binary settles at 100, if it finishes down it settles at 0.
Ladders
Ladders offer greater freedom to the forex binary trader, providing opportunities for more varied positions than simple Up or Down settlements.
With Ladder binaries we provide you with a range of levels for a forex pair to finish higher than at the end of the day (Chicago time). By choosing a specific level for the forex pair to finish above, you can get a better price than you would on a more simplistic binary.
Example
We quote the previous day’s settlement for EUR/USD at 1.4818. We offer a range of ladder prices to finish above and below this level. On one hand we offer a binary of 60.1 for the pair to finish above 1.4820 on the day. On another, we offer 28.2 for the pair to finish above 1.4870 at settlement. Should you buy 10 contracts at $10 per point for the EUR/USD to finish anywhere above 1.4820, you would stand to make $3990 (100 – 60.1 x 10 x 10) if you were correct.
However, if you took a greater risk and bought 10 contracts at $10 per point for the EUR/USD to finish above 1.4870, you would make $7180 (100 – 28.2 x 10 x 10).
Daily Ladders are available on AUD/USD, EUR/USD, GBP/USD, USD/CHF and USD/JPY.
OneTouch
Our Monthly OneTouches can result in even more dramatic short-term profits. While they are a monthly rather than daily or weekly contract, they close as soon as the pair hits the chosen level. Like Ladder binaries, for each pair there is a range of OneTouch levels, each with a different price. The higher the level, the higher the price.
Unlike Ladders, the forex pair has only to hit the level you choose for the contract to be closed out at 100 – you do not have to wait until expiry at the end of the month. This means you can benefit from more immediate returns and are less vulnerable to fluctuating markets.