0-100 Binary Options.
AnyOption company presents one more unique type of binary options which is a 0 -100 binary option. The profit can reach up to 1000% in a trading session. However, risks are also high. Therefore, this type of binary options is rather for experienced traders and professionals.
0-100 Binary Options.
This type of the binary options is similar to One Touch options, but the difference is that an option doesn’t close in case the price touches the required level; it closes at the moment of expiration. The maximum term of the 0-100 binary options is 30 minutes. One more important and major difference from other types of binary options lies in profit calculation.
Profit Calculation.
Under the condition of the 0-100 options, the price is to be above or below the mark presented on the chart as a line in the middle.
Purchase of an option : If you expect the price of the underlying to be above the central line by the end of the option validity, you need to click a BUY button.
Sell of an option : If you anticipate the price of the underlying being below the center line, you need to click a SELL button.
The risk-to-reward ratio is always 100. That’s why this type of binary options is called 0-100. Before you make a deal, you know the risk-to-reward ratio precisely. To get a price in which the risk amount is less that the reward amount is always better for an investor.
For instance, if the reward is $60 and the risk is $40 than this means you can earn $60 investing $40.
However, this option type is associated with higher risks and required a deeper analysis of an underlying. There is one more hidden reef there. If you do not know it, you can suffer losses. Immediately after you make a deal, you are offered to buy it back at a lower price. That’s why don’t click a Buy or Sell button in the column of the active options. You should do it only if you understand that your forecast is wrong. Therefore, you fix your loss, however, you won’t lose a full amount as you get back a part of your investment.
A middle line divides the field into the upper blue and lower yellow parts in the window of the 0 — 100 option. The current price of the options is set in the field of the triangles. In the blue field, to the right of the price triangle there are indicators of the maximum reward to risk ratio. It is calculated automatically and depends on the price of an option. Below, in the yellow field , the triangle is at the right, there are similar indicators of the maximum reward to risk ratio for sell at the left. The expected profit you get in case your forecast is correct is shown there. In the blue window like in yellow the total amount of buy and sell being equal to $40.5 and the risk being equal to $59.5 constitutes $100. In the upper part of the window the currency pair is set to EUR/USD. Also, the expiration time of the binary option can be set there; in this case this is 2:30 p.m.
If you are sure that the price will rise, you can buy a 0 — 100 binary option at the price $47.8 USD. This is the price of your risk. It is displayed in the blue and yellow window. There is an amount of your expected profit above it which is the spread between the price of purchase and 100. It constitutes $52 there. If you buy the option at $47.8, and it reaches the required mark within the period set, you get $100. The net profit constitutes 108,3%.
If you are sure that the price won’t reach the required level by the moment of expiration, you can sell the option at 40,3%. In this case you risk to lose the spread between the purchase price and 100. It’s equal to $100 – $40.5 = $59.5. When you sell the option, your risk constitutes $59.5, which means the amount is more than the expected profit.
Advantages.
Execution in just one click: you just need to click a SELL or BUY button.
Immediate order execution: no need to wait for confirmation.
You can buy or sell back immediately on the same page..
To buy a 0-100 binary option is better at that moment when the trend is steadily rising or falling with a per-second speed.
The disadvantage of this binary option type is a short list of underlying securities. The 0-100 binary options can be only on some indices and currency pairs. Thus, you don’t find there British Petroleum stock or Daimler AG stock. However, if you like the currency market, this type of binary options can be of interest to you.