Introduction to the High Yield/Speculative Options
The binary options market has a unique payout structure which you will not find in other markets. Rather than payouts for trades being determined by the number of pips and the trade volume of the trader’s position, payouts in the binary options market tend to be fixed within a range and that is why they are also called fixed return options (FRO).
Payouts tend to be within a range, as opposed to a single figure, and they are expressed as a percentage of the investment amount. One of the trade types that binary options traders can trade is the high-yield/speculative trade types.
The high-yield/speculative binary options go by different names depending on the trading platform that the trader is using. The following types are commonly seen:
a) High Yield Touch option, which is available on the SpotOption trade platform as well as the Tech Financials Ltd trade platform. It is available for trading on the white-label brokerage partners of this platform. Examples of brokers offering this trade type are iOption, GTOptions, TradeRush, EmpireOptions, OptionFair, 24Option, etc.
b) The High Yield Boundary Option is exclusively found on the Tech Financials Ltd trading platform, and is therefore available for trading on partnering brokers such as AnyOption, OptionFair and 24Option.
c) Run Bets are found on the Betonmarkets platform and there are various types of run bets which we shall discuss.
High Yield Touch Option
The high yield Touch option is basically a One Touch trade which has a high payout that approaches 500% for successful trades. The trade has the following components:
a) There are two variations of the high yield one Touch trade. There is a bullish component which sets a strike price that is located far above the market price, and there is a bearish component which sets the strike price at a price located far below the market price. So the trader has to perform the analysis and decide which of the two possibilities to go for.
b) There is only one possibility for a successful outcome. The trader cannot choose both a bullish and a bearish possibility.
c) The strike price is located far above the market price, and it is the improbable chance of success that puts the high payout tag on the trade type.
High Yield Boundary Option
The high yield boundary option is basically an OUT trade, in which there is a high payout of between 380% and 500% for successful trades. The trade has the following components:
a) The successful outcome is in the asset breaching any of the two price barriers, set at ambitious distances from the market price (either to the upside or downside).
b) Most times, two sets of strike prices to the upside are provided (bullish outcome) and two sets of strike prices for a bearish breach are provided.
c) The price barriers are located at some distance from the market price, and the improbable nature of a successful outcome are what put the pricey payout tag on this trade type.
Run Bet
The Run Bet is an exclusive product to Betonmarkets. They are purely speculative as the nature of the trades is such that no real analysis can be performed on the trade to determine the final result. The following bet types are available for the Run Bets.
a) Lucky 10 Digits: This bet type promises a trader 10 times the invested amount if the trader is able to predict what the final digit in the price of the asset would be after 5 ticks.
b) Quick 10%: This bet type promises a trader 10% of his investment if he can predict that the last digit of the asset after 5 ticks would not be a particular number.
c) Run Bet Up/Down trade type promises the trader double the invested amount if he can accurately predict if the market will move up or down after 5 ticks.
These are the common speculative/high yield trade types that a trader can expect to trade on the various trading platforms.
