Binarytools platform offers a type of contract called Higher/Lower. It allows users to speculate on the price of an underlying asset. Whether it increases or decreases over a specific period of time.
This type of contract has its own characteristics and associated risks. So it is important to understand each of them to make decisions when investing.
Higher/Lower
By understanding the operation of the Higher/Lower contract, users can maximize their opportunities, thereby obtaining profits and effectively managing the associated risks.
This knowledge enables them to make informed decisions, optimize their trading strategies, and capitalize on market movements to achieve their financial objectives.
Through a comprehensive understanding of the contract’s mechanics and the factors influencing asset prices, users can make more precise predictions and implement various strategies to enhance their trading experience.
How does the Higher/Lower contract work?
This type of contract is similar to the Rise/Fall contract in that it requires making a prediction about the market movement in relation to a price barrier established before purchasing the contract
The main difference lies in the so-called barrier, which in the case of Higher/Lower is established prior to the purchase of the contract. This detail is significant, as it directly affects the strategy and risk associated with the contract.
By having the option to choose the barrier level prior to purchase, investors can tailor their trades to their expectations about market direction and volatility. This gives them the opportunity to explore new opportunities and optimize their exposure to different assets.
Higher/Lower contracts offer a duration per trade that can vary from 5 ticks to several days, depending on the investor’s choice. This flexibility in terms of time frame allows trades to be tailored to different investment strategies and preferences.
The ability to choose the length of time to hold the contract gives investors the opportunity to adjust their trades according to their expectations and market analysis.
The payouts associated with this type of contract tend to be very diverse, given the positioning of the barrier. This provides flexibility to traders in terms of their investment strategies. It is essential to understand that this contract has only one barrier, which can be positive or negative.
In the case of positioning a barrier above the price of the asset, it must be positive. On the other hand, to position a barrier below the price of the asset, it must be negative.
Selecting “Higher” means you will win the trade if the exit point is higher than the barrier price.
If you select “Lower” you will win the trade if the exit point is lower than the barrier price.
If the selected condition is met, the trade will be won. However, the trade will be lost if the selected condition is not met or if the exit price is equal to the barrier.
See how you can complement your strategy manually: ¡Live trading manual! HIGHT/LOWER!
Learn about other advantages of this contract
Proper management and investment strategy are fundamental to achieve success in this type of operations. Therefore, it is crucial for traders to educate themselves on the various aspects . Such as market analysis and interpretation of asset trends.
One of the advantages of trading Higher/Lower contracts is the flexibility they offer in terms of duration and potential payouts.
Traders have the ability to select the time period that best suits their investment objectives and strategies. This allows them to customize their trades according to their needs and preferences.
To maximize the chances of success in trading Higher/Lower contracts. A solid understanding of the financial market, as well as tools and resources to support informed decision making, are essential.
Get to know our latest bot
Your opinion is important
As a brand, our mission is to innovate and bring quality products to our community, and the entire Neuronaltrader team is working hard to keep adding value to your assets!
If you are part of our community and use Binarytools to automate your strategy. Let us know if you have a particular strategy you would like to share.¡Join Here!
Important: You should not take the information and/or knowledge expressed in this article as investment recommendations or financial advice. All investments and/or actions involve a risk and each person is responsible for researching, educating and analyzing before making an investment decision.
