What is a High Option in Binary Options? | Definition


Binary Options High Option, also known as a Call Option, is a type of binary option contract where the trader speculates that the price of the underlying asset will be higher than the strike price at the time of expiration.

High Option in a nutshell

  • Binary Options High Option, also called Call Option, speculates on asset price surpassing strike price at expiry.
  • Traders select underlying assets like stocks, commodities, or currencies for High Option trades.
  • If asset price exceeds strike price at expiration, traders earn fixed payouts; otherwise, they lose investment.

How do High Options work in binary options trading?

High options in binary options trading offer a simple yet potentially lucrative way to profit from market movements. Before you choose the high option, you should double-check everything. And once you are sure that the asset’s price will increase from its spot price, you can pick “high” by placing the call option. 

Example: How to trade a High Option? 

To trade a high option in binary trading, the trader needs to understand whether the value of a given asset will go high or it will be lower than a certain price range. In short, whether the price will increase or decrease. With a simple prediction, you can either make a huge profit or end up losing your invested amount to someone else. 

  1. Selection of asset: The trader selects an underlying asset such as a stock, commodity, currency pair, or index.
  2. Prediction: Based on market analysis and indicators, the trader predicts whether the price of the chosen asset will rise or fall within the specified timeframe.
  3. Purchase: If the trader believes the price will rise, they purchase a High Option.
  4. Expiration: The option has a predetermined expiry time, and if the price of the asset is higher than the strike price (the price at which the option was purchased) at expiration, the trader earns a fixed payout, typically a percentage of the investment. If the price is lower or equal to the strike price, the trader loses the investment.

To understand the high option, here’s a small example. 

Let’s consider a high option trade with PocketOption on the EUR/USD currency pair, currently valued at 1.06761. You anticipate that the value of EUR/USD will rise within the next 15 minutes and decide to invest $100 in this trade. With a payout rate of 92%, a correct prediction would yield a profit of $92, resulting in a total payout of $192. However, if the value of EUR/USD decreases instead, you would lose your initial investment of $100.

Read other important articles in the binary glossary.

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About the author

Marc Van Sittert
Marc Van Sittert is an experienced Binary Options Trader and coach who is originally from South Africa. He started his career in 2014 by trading old-school Binary Options online. His main focus is on short-term contracts with 60-second trades.

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