Trader Basics

Trader Basics List

Instrument Types

High/Low
A High/Low instrument is one which is written around the current market price and allows the user to decide whether the market will by Higher or Lower at expiration relative to the current market price.
One Touch
A One Touch instrument is one which is written around the target price and whose outcome depends on whether the market price reaches or does not reach the target price prior to the expiry of the option.
Boundary
A Boundary instrument is one which is written around two target prices (a lower and an upper target) together forming a boundary range. The outcome of this option depends upon the market price at expiration relative to the boundary range. Short Term
A Short Term instrument offers High/Low trades with a rapid expiry time. Current short term trades include 60 Seconds, 2 Minutes and 5 Minutes.

Returns and Refunds

The following parameters are common to all the four instruments:

  • Options expiring “in the money” will typically offer a return of 100% of the investment e.g. on an investment of 50$ the return will be 100$.
  • Options expiring “at the money” will result in full return of the investment amount to the client.

For a fuller explanation of these possibilities see the following section.

In the Money Expiry

This is a term meaning the option is currently profitable. Options that expire “in-the-money” are those that expire yielding a profit for the client. Trading at www.optionfair.com-on will yield expiration “in the money” under the following conditions:

High/Low Instrument

  • A High option where the expiry level is above the target price.
  • A Low option where the expiry level is below the target price.

One Touch Instrument

  • A Touch option where the market price reaches the target price before the expiry time. In such an event the option automatically and immediately expires “in the money”.
  • A No-Touch option in the event that the market price does NOT reach the target price before the expiry time.

Boundary Instrument

  • An Inbound option where the expiry level is within the boundary (i.e. above the lower and below the upper target price).
  • An Outbound option where the expiry level is outside the boundary (i.e. below the lower or above the upper target price).

Out of the Money Expiry

This is a term meaning the option is currently not profitable. Options that expire “out of the money” are those that expire yielding a loss for the client. Trading at www.optionFair.com-on will yield expiration “out the money” under the following conditions:


High/Low Instrument

  • A High option where the expiry level is below the target price.
  • A Low option where the expiry level is above the target price.

One Touch Instrument

  • A Touch option in the event that the market price does NOT reaches the target price before the expiry time.
  • A No-touch option where the market price reaches the target price before the expiry time.

Boundary Instrument

  • An inbound option where the expiry level is outside the boundary (i.e. below the lower or above the upper target price).
  • An outbound option where the expiry level is within the boundary (i.e. above the lower and below the upper target price).

At the Money Expiry

This is a term meaning the option is currently trading at the same price as the target price. Options that expire “at the money” are those that expire at the target price. In the event of expiry at the money, OptionFair will return the invested amount to the client. Trading at www.OptionFair.com-on will yield expiration “at the money” under the following conditions:

 

High/Low Instrument

  • A high option where the expiry level is at the target price.
  • A low option where the expiry level is at the target price.

Boundary Instrument

  • An inbound option where the expiry level is at one of the boundaries (either the lower or upper target price).
  • An outbound option where the expiry level is at one of the boundaries (either the lower or upper target price).

 

OptionFair® is an innovative binary options and Forex trading platform provider owned and operated by B.O. Tradefinancials Ltd, a Cyprus Investment Firm located in the Republic of Cyprus and licensed by the Cyprus Securities and Exchange Commission: License Number 216/13 www.cysec.gov.cy

 

Risk Warning: All information in and on OptionFair.com is solely for informative means, and is not intended to be taken as financial advice on any issue or subject. No users, traders or site viewers should act, or not act, as a result of OptionFair’s content without first consulting the suitable financial expert advice. B.O. Tradefinancials and its affiliates publicly repudiate all liabilities related to, or resulting from, any acts, taken or not, founded on any or all of the content on this site. It is recommended that traders should know that Binary Options trading as well as trading in CFDs and Forex is known as a ‘high risk’ monetary activity that has the potential to cause the trader to lose part of,or all of the invested funds in a relatively short time period. All traders are kindly advised to decide if this activity will fit their needs, if they have the fiscal resources for it and if this is a worthwhile personal undertaking.

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