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Types of option contracts

First Binary Option Service has been established by online trading professionals possessing solid practical experience of trading on financial markets. The service provides a mass user with the opportunity to start working on the OTC market of Binary Options with the help of First Binary Option Service the leading Trading Platform. Today, First Binary Option platform is regarded as the most advanced platform and is optimized for simultaneous use by a large number of traders and investors.

High / Low

Option contracts of "High - Low" class are the easiest financial mechanism to use proposed by "First Binary Option Service". It is possible to use contracts of these types as in speculative purposes, and for partial hedging of risks a trader undergoes in the futures and options (Spot) market.

The mechanism of contracts of this class is based on a comparison of instrument price at the closing of an option contract with the price that existed on the server at the time of its opening. Closing price of the option contract is the price that is displayed in the last tick of the last minute bar of option contract's validity. The condition of the contract' accomplishment is strict compliance (more or less) of closing price with the opening one.

If you choose "Call" contract, for the successful execution it is necessary that the closing price will be at least one point higher than the opening price. If you choose "Put" contract, for its successful execution it is necessary that closing price will be at least one point lower than the opening price. Quoting is executed in a four-digit system. In case at the moment of contract's closure the closing price is equal to opening one, the contract will be considered as unexecuted.



"First Binary Option Service" suggests the following procedure of working with the option contracts of "High - Low"

1. Select a trading instrument. In order to select it you need to choose the appropriate tab in the interface ("All", "Currency", "Commodities", "NYSE Stocks") and, further, select the appropriate item in the drop-down menu of button "Instrument".

After your choice, the picture in the tab "Volumes" will show you the distribution of "Call" and "Put" contracts for this instrument in percentage, the panel "Order Management" will display the percentage of the current profitability of option contracts of the chosen instrument. In the graphic part of the platform there will be candlestick chart of the price of the chosen instrument.

2. Select the expiry of your option contract according to your trading strategy. For that, press the button "Expiration time" in the platform and from the drop-down menu, select the value that suits you best.

3. Select the volume of your option contract, entering it into the appropriate field "Volume". "First Binary Option Service" allows a minimum volume of one unit of account currency.

4. Evaluate the possible direction of price movement after the conclusion of your contract, and then in the part "Order Management" press the appropriate button. Up arrow button means "Call" contracts' execution, down arrow button for "Put" contracts' execution.

5. After you click the button "Call" or "Put" there will be obscuration of the interface for the Company's server processing period of your request. After your contract is processed, you'll see it at the bottom of the interface in the column "Current operations".

6. After the expiration, your contract will be closed automatically; you will see its result in the tab "Account History" at the bottom of the interface.

7. The total balance of your account, free margin and company's server time are displayed in the appropriate line of your trading interface.

If you are interested to open a trade of this type of contract, please sign up here!