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All or Nothing Binaries

The term all or nothing in binary options means; you’re either going to win your trade with a guaranteed percentage or lose what ever invested. It’s a bit scary to think about, if you are a new trader. When you have the chance to earn 90% on a trade, the risks go up just as well. The important factor here is to always understand your risk before entering the market.

This fixed return will be determined by the broker and the strike price you get in at. Assuming you take a call option on Google Stock at $800 a share for $100. Your return on investment will be set before you enter the trade. Say you take this trade for an 81% return if the trade finishes in your favor. This would mean you will get back $181 into your account. If the price finishes anywhere below the strike price, your return will be $0 or a loss of $100.

Type of Binaries
There are several types of binaries that traders can use. You have the simple call and put option, boundary options, and touch or no touch options. These are all forms of all or nothing binaries. It’s best to test each of these before risking real money trading them.

There are also so many different types of timeframes you can trade these. You have the shortest timeframe of 60 seconds up to weeks. Our favorite style of option is the 10-15 minute binary. This gives your trade enough time to work itself out. You can even trade over the weekend on an all or nothing trade, but these are extremely risky.

Here are some examples broken down.
BinariesCall Option – Say you take a call option on the EURUSD hoping for the price to go up. Should the price finish above your strike price or the price you entered, you will have a winning bet. The percentage was determined before you entered the trade. Should the price go down instead, you’ll most likely end up losing the whole investment.

Put Option – This is the opposite scenario of the trade above. This time you want the price of the EURUSD to go down. If the price moves in your favor, the determined percentage will be rewarded to your account. Should the price move up, even by 1/10th of a pip you will lose the whole investment.

Touch and No Touch – In this all or nothing scenario you’re seeking a trade whether you think the price will touch a certain price or not touch. All the price needs to do is touch the price point for a winner. If the price doesn’t reach that high or low, then you’ll lose the total investment. It is that simple. When trading this method you need to be very careful and look for the best setups.

The Boundary option is similar to the touch or no touch, but this time you are looking for the price to stay in a certain range. Should it do this you will have a winner. Of course, if it doesn’t, the investment will be lost.

Once you learn the different types of trading models you should start to practice on an demo account. This will help you get better with your entries. Over time you will learn what to look for, so you can take the best trades only.

Risk Disclaimer