Binary Options Low Option definition
The low option in the binary trading world is nothing but the direction of the trade. Therefore, this option is exactly the opposite of the high option.
To select a successful low option, you need to analyze whether the price of a given asset will increase or fall. If you think that the value will decrease, you can pick the “low” by placing the put option.
How do Low Option work?
When you are trading any asset in the market, you need to keep a close eye on market fluctuation and news trends. By doing this, you will understand the price movement of the asset you are trading in.
If you assume that the value will decrease from its current spot, you can choose to go low. By picking low, you are opting for the put option. Meaning you are selling the asset.
If everything works in your favor and the price actually decreases, you will make a huge profit. Otherwise, you will end up losing the trade.
Example of Low Option
Here’s a quick example of how the low option works.
Let’s assume you are trading in gold. Its current market price is $100, and it has an expiry time of 1 hour. If you believe that the price will decrease by a certain percentage and pick a low option, you will win the trade if it actually does.
The low option is a part of binary options trading just as high option. You can win any given trade by choosing a low option if you believe its price will decrease from its spot price.