High/Low Binary Options
A successful binary options high/low strategy earns traders a profit by predicting whether the price of an underlying asset will rise or fall. With a correct prediction, high/low binary options traders can earn a large percentage of their stake even from insignificant price movements in a contract lasting a minute or less. But while the payouts can be large, the risks are also high – traders can lose their entire stake.
This tutorial explains how to develop a winning binary options high/low strategy, covering chart setups and risk management tips. We also list the top high/low binary options brokers in 2023.
High/Low Binary Options Brokers
Pocket Option offers short term binary options on a user-friendly platform with competitive payouts of 90%+. Over 130 assets are available with fee-free deposits and withdrawals. Joining bonuses are also available to new users.
Min Deposit Payout % Expiry Times $50 92% 5 seconds - 4 hours Bonus MetaTrader 4 Markets 50% Deposit Bonus No Forex, Stocks, Crypto, Commodities
IQCent offers binary options on forex, stocks, cryptocurrencies and commodities with high payouts up to 98%. The broker uses a proprietary platform with advanced analysis tools and traders can choose contract timeframes ranging from 5 seconds to months, appealing to both short and long term traders.
Min Deposit Payout % Expiry Times $250 98% 5 seconds - 30 days Bonus MetaTrader 4 Markets 20% to 200% Deposit Bonus No CFD, Forex, Crypto, Commodities
Videforex binary options are available from 20% payouts on crypto up to 98% payouts on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.
Min Deposit Payout % Expiry Times $250 98% 5 seconds - 1 month Bonus MetaTrader 4 Markets 20% to 200% Deposit Bonus No CFD, Forex, Stocks, Crypto, Commodities
Dukascopy offers binary options on currency pairs, stocks and indices, alongside powerful trading tools and market insights. User gets flexible contract sizes and deposits are protected by EU law, though the $1000 starting investment is higher than alternatives.
Min Deposit Payout % Expiry Times $100 90% 3 minutes - 1 day Bonus MetaTrader 4 Markets - Yes CFD, Forex, Stocks, Crypto, Commodities
AZAforex offers binary options with time-dependent payouts that can be taken out on any asset included as a CFD or spot instrument. Over 50 binary options are available with a $1 minimum stake and payouts up to 190%.
Min Deposit Payout % Expiry Times $1 190 Bonus MetaTrader 4 Markets - No CFD, Forex, Stocks, Crypto, Commodities
Focus Option offers binary options trading on 140+ instruments including forex, cryptocurrencies, commodities, indices and company shares. Contracts include 30 seconds, 1 min, 2 mins, 5 mins, 15 mins, 30 mins, 1 hr, end of day, and long-term contracts up to 30 days. Decent payouts typically climb to 95%. The browser-based platform is beginner-friendly with sophisticated analysis tools.
Min Deposit Payout % Expiry Times $10 95% 30 seconds - 1 week Bonus MetaTrader 4 Markets - No CFD, Forex, Stocks, Crypto, Commodities
CloseOption offers binary options trading on 30+ fiat and digital currencies through an easy-to-use web-based platform. 15 contract timeframes are available from 30 seconds to 1 month, suiting both short-term and long-term traders. New users also get a joining gift.
Min Deposit Payout % Expiry Times $5 95% 30 seconds - 1 month Bonus MetaTrader 4 Markets - No Forex, Crypto
World Forex offers binary options where you simply decide the stake, price direction and contract timeframe. The payouts are high at up to 100% on American contracts and 85% on European, which also offers a partial refund to traders who close contracts before expiry.
Min Deposit Payout % Expiry Times $1 100% 1 minute - 7 days Bonus MetaTrader 4 Markets - Yes CFD, Forex, Stocks, Crypto, Commodities
GC Option offers beginner-friendly binary options with 86% payouts and opportunities on forex, metals and cryptocurrencies. The broker stands out for its market-leading trading software and access to short-term opportunities with contracts spanning 60 seconds to 48 hours.
Min Deposit Payout % Expiry Times $10 86% 1 minute - 48 hours Bonus MetaTrader 4 Markets - Yes Forex, Crypto, Commodities
RaceOption offers 100+ binaries with decent payouts up to 95% and ultra-fast expiries from 5 seconds. With a $250 minimum deposit, clients can enjoy free deposits, fast withdrawals and a range of trading bonuses.
Min Deposit Payout % Expiry Times $250 95% 5 seconds - 30 days Bonus MetaTrader 4 Markets 20% - 200% Deposit Bonus No CFD, Forex, Stocks, Crypto, Commodities
BinaryCent provides binary options trading on a range of markets through a slick proprietary platform. Traders can invest as little as $0.10 per trade and earn payouts up to 95%, and these are excellent terms that accommodate casual and low-capital traders while allowing profit opportunities.
Min Deposit Payout % Expiry Times $250 95% 5 seconds - 30 days Bonus MetaTrader 4 Markets 20% to 200% deposit bonus No CFD, Forex, Stocks, Crypto, Commodities
High/Low Binary Options Explained
High/low binaries are the trading product that made binary options popular due to their ease of use. A trader simply places a bet on whether the price of an underlying asset, such as gold, will be higher or lower than a predetermined price at the time the contract expires.
The stake, strike price, contract length and payout are all predetermined, meaning that the amount the asset’s price moves will not have an effect on the level of profit or loss.
If the trader is correct about the price movement, they will make a profit, but if they are wrong then they will lose their entire stake. This is an attractive prospect to binary traders who are familiar with the asset they are trading and its price movements, but it can be risky as even the best binary options high/low strategy can come undone when luck turns against you.
Let’s say you have a firm hunch that Apple (AAPL)’s share price will increase over the course of a trading day, so you go to a binary options broker that provides access to NASDAQ stocks to buy a contract.
You decide to open a long position with a four-hour call contract. The market price of AAPL is just shy of 147.200 when you open the $1000 contract, and the broker offers a highest payout of 77% if the stock price rises.
Four hours after you open the contract, AAPL has risen to 147.400.
The contract pays out, and you receive your $1000 stake back plus $770 in profit.
The unpredictable nature of price movements when trading high/low binary options means you will have to accept some losses. Since a losing trade wipes out the trader’s entire stake and a winning trade only earns a portion of the stake, you will need a competitive win rate to earn a worthwhile profit.
For example, someone trading high/low binary options with a 70% payout will need to have at least a 59% success rate to begin making a profit, before any additional fees are considered.
In other words, even though there are only two outcomes, a high/low binary options contract is by no means a simple coin toss, and the majority of traders lose money on this derivative. However, there are distinct advantages to this product, as well as proven binary options high/low strategies and systems used by traders to turn a profit.
One of the key factors that will influence your binary options high/low strategy is the expiry time. These can range from turbo contracts of a few seconds to longer-term contracts that could expire after weeks.
- Turbo: Turbo binary contracts commonly run between 30 seconds and 2 minutes, though some brokers may offer even shorter expiry times. Traders need to tailor their high/low binary options strategies to such a short contract, as prices can quickly fluctuate even if the momentum is moving the price in one direction.
- Standard: While there is no “regular” high/low binary options contract length, expiry times ranging from 15 minutes to several hours are extremely popular. Traders can benefit from many well-known technical analysis methods when investing in high/low binaries over this period.
- Long-term: Longer high/low binary options contracts of days or weeks require a different strategy. Since you are looking at the long-term performance of an asset, you will need to carefully research the trade to make an informed decision on which way the price will go. Your bet may be based on market conditions or an upcoming event/announcement for a specific company, but remember that the longer the contract length is, the more chance there is of an unforeseen event that could scupper your plans.
Benefits Of High/Low Binary Options
High Earning Potential
One of the key reasons traders use high/low binary options is because they provide a high earning potential. This is because you can make a sizable return even on minuscule price movements, and with turbo contracts available you can make many trades per day.
Easy To Understand
High/low binary options are perfect for beginner traders because of how easy they are to learn and use. Traders know all of the terms of the trade before they enter into it, including the expiration time and the payout, so all they have to do is make a prediction about which way the market will move.
High/low binary options contracts are the most common and widely accessible. This means they will be available from most binary options brokers online, and therefore traders can choose a brokerage and trading platform that fits their needs.
The expiry times for high/low binary options are flexible. Brokers may offer contracts with expiry times ranging from 30 seconds to months. This covers a large range of trading styles and strategies, making high/low contracts flexible.
Large Range Of Assets Available
It is possible to deploy a high/low binary options strategy contracts on a wide range of assets, including forex, stocks, indices, commodities, and cryptocurrencies.
Drawbacks Of High/Low Binary Options
High/low binary options are risky since a trader gives up their entire stake in a losing trade. This means traders need to have a good knowledge of the market and practice a sound binary options high/low strategy with discipline. Otherwise, a lot of capital can be lost quickly.
Limits To Payout
Payouts from high/low binary options are quite competitive, but they will almost always be less than the value of your stake. The profits from some other products, such as classic options and contracts for difference, scale with the price movements and can benefit from leverage, making it possible to earn many times your stake in one winning trade.
Not only is binary option trading risky because of the possibility of losing trades, but your funds could also be put at risk by fraudulent brokers. For this reason, it is essential to choose a broker with a good reputation and positive user reviews and ratings. We have tested and ranked the top binary options high/low brokers.
Binary Options High/Low Strategies
Many successful binary traders use news events to assess how the market is going to move and make successful high/low binary options trades.
Traders may look to capitalise on an upcoming event, such as a company’s quarterly profit and loss statement, in which case they can set up trades based on their prediction of how that event will go. Or, they can use the news to stay informed about global issues and challenges and use this knowledge to inform their guesses on the general movement of prices.
High/low binary options traders use various technical analysis techniques to help them plan and execute trades. They may use techniques such as Bollinger Bands to gauge volatility and get an idea of high and low resistance levels, allowing them to time their entry into a position. Likewise, indicators such as the Stochastic Oscillator can give an idea of when to expect a reversal by gauging the momentum of a price movement.
There are many methods of technical analysis to master and getting a firm grounding in this will provide advantages to traders who wish to hone their high/low binary options strategies.
Some companies provide information on a particular trade or market through a messaging service known as signals. These can be a useful way to stay informed, but traders should be aware there are different types of signals before they integrate them into their high/low binary options system.
While free signalling software is available, the services that provide this will need to make money somehow, and they may require users to sign up with a specific broker to access the service. Traders can avoid signing up to a substandard broker by paying for their signal service.
One of the most important aspects of a successful high/low binary options strategy is risk management. Traders need a high win rate to turn a profit, so minimising the risk of each trade is a necessity. This also involves setting stringent rules and sticking to them, to avoid losing your profits in an unwise, emotional trade. A common risk management method is to limit the amount of money staked on one trade to 1%-2% of your total capital.
High/low binary traders should also ensure they take profits regularly, stay abreast of news events to get advance warnings of volatile periods, and avoid making trades unless they are confident they can predict price movements with a high degree of accuracy.
Many traders use automated programmes known as bots which make high/low binary options trades on their behalf according to user-set parameters. This allows traders to continue making money while they are otherwise occupied, and it can also remove the dangerous emotional element from trading.
However, high/low binary options traders must still monitor their bots to ensure they are working correctly, and they must be confident in their trading system and strategy before turning it over to bots.
High/low binary options traders are advised to choose a broker that offers a demo account. By making paper trades without any real money at risk, you can test your strategies and trading system while also getting used to the broker’s trading platform.
High/Low Binary Options Trading Tips
Choose A Good Broker
Choosing a broker for high/low binary options trading is one of the most important steps. Ensure that you select a brokerage that is highly reputable so that your funds are safe, and also one that offers all of the tradable assets that you want, such as UK-listed stocks and precious metals like gold and silver. This is going to make your trading journey safer and easier.
The trading platform that you choose is another major part of high/low binary options trading. A good platform is going to allow you to conduct quality technical analysis and place trades efficiently and effectively, which is essential.
The most popular trading platforms are MetaTrader’s MT4 and MT5, but there are many other quality, browser-based terminals available.
Final Word On High/Low Binary Options Trading
It is important that you use a tried and tested trading strategy for high/low binary options rather than trading sporadically or based on a hunch. Gambling with any kind of trading is risky, but with the ‘all-or-nothing’ style of high/low binary options, you can easily lose large sums if you don’t take a disciplined, informed approach and practice risk management. It is also important that you choose your broker and platform carefully so that you can make the most of your trading experience.
Use our list of the best high/low binary options brokers to get started.
Should Beginners Start Trading High/Low Binary Options?
High/low binary options appeal to beginners because they are easy to understand and simple to use, but they are also risky. For this reason, we recommend that all beginner traders use a demo account to practice high/low strategies before risking real funds.
Is High/Low Binary Options Trading Profitable?
Yes, it is possible to make money from high/low binary options trading but it’s also a risky process where poorly researched or emotional trades can lead to large losses. This means it’s important to acquire knowledge of high/low binary options trading beforehand to ensure you are making educated decisions.
Where Can I Trade High/Low Binary Options?
High/low binary options are one of the most common contract types, and therefore they are offered by the majority of binary options brokers. We have reviewed and ranked the top high/low binary options brokers.
Is High/Low Binary Options Trading Risky?
Because an unsuccessful trade means you lose your entire stake, the risk with high/low binary options is large for traders who do not manage their wallets. This is why it’s essential to educate yourself before you begin trading and trade on a demo account before risking real funds.
Can You Automate High/Low Binary Options Trading?
Yes, high/low binary options can be automated using trading bots which will use your strategy and trade on your behalf. This means you can make a higher volume of trades and don’t need to be at your computer at all times.