High options are one of the most essential binary option types. Because high low options resemble the way most people naturally think about investments, new traders often find that high options are the ideal tool to start their career with.
High options are the easiest way of investing in a binary option. Simply put, a high option predicts that the market will rise over a given period of time. Together with low options, which predict that the market will fall, high options create high / low options, the classic way of trading binary options.
If you win your high option, you get a payout of up to 90 percent. If you lose, you lose your complete investment. This means, high options allow you to make a profit of 90 percent in only a few minutes – but you can also lose your entire investment in only a few minutes.
High options work on short timescales from 5 minutes to a few hours. To allow you to invest on shorter and longer time scales, binary options brokers have created 60 seconds options and long term options, which allow you to invest on timescales from 30 to 300 seconds and weeks to month, respectively. Essentially, though, these option types are just high / low options with a different expiry.
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The important thing to understand about high options is that you will win your option even if the market only climbs the smallest possible increment. No movement is too small for high options, as long as it points into the right direction.
High options are ideal to take advantage of even the smallest market movements, allowing you to employ strategies that you would be impossible with all other binary option types and allowing you to profit from predictions you can’t profit from in any other way.
High options are perfect for new trades. While low options share all of the general characteristics of high options, high options have one significant advantage: they resemble our natural way to think about investing.
From watching the news and reading about investments, we are all raised on the idea that making money on financial markets means to take advantage of rising prices. Stories about Warren Buffett, the development of stocks such as Google and Amazon, and connection of high courses to economic prosperity have given us a predefined way of thinking about markets that closely resembles the mechanics of high options.
Consequently, most new traders find it difficult to trade low options and take advantage of falling prices. This way of trading seems almost alien, and it takes time to understand how to find opportunities to take advantage of falling prices.
Therefore, we recommend that newcomers start by focusing on high options. Finding opportunities for rising prices comes easier to most of new traders, and by focusing on this way of trading, they can reduce mistakes and increase earnings.
After newcomers have mastered high options, they can still expand their trading to low options and other binary option types. For most traders, this will be a natural, effortless transition, made possible because they started at the right point.
To find the right strategy for these options, you have plenty of possibilities:
Technical indicators: Technical indicators aggregate past market movements in a way that allows predictions about what will happen in the future. With moving average crossovers, momentum divergence / convergence, and similar techniques, you can easily create trading signals that even newcomers can trade.
Trend analysis: Trends are market movements that take the market up and down. By understanding trends, you can tap into an almost endless reservoir of profitable trading opportunities.
Candlestick formations: Candlestick formations are simple price formations that allow you to predict what will happen next.
If all of these possibilities sound too complicated to you, you can also take a short cut: You can subscribe to a signal provider. Signal providers analyze the market for you and alert you whenever they find a profitable trading opportunity.
With this system, you can outsource the most complicated part of trading these options, while still being able to reap the full rewards the system has to offer.