Whether a cheaper or expensive binary is better

#1

I plan to scalp a binary fornex pair say USD/JPY. If the market moves my direction on a put or long. Does a 50 dollar contract get faster take profit results after it is in the money----------- or is a cheaper contract say 30 dollars contract get faster take profit scalp results after in the money???

#2

Hello.

You are really asking the wrong question. It is not a matter of price. It is a matter of market movement. The At The Money Binary will need the market to stay slightly higher, or increase for a Long. Also to go lower for a short. The ATM contract will move the fastest to a possible take profit. The cheap binary on the other hand HAS to move. Up for a long and down for a short.

Think of it this way. A ATM Binary can stay the same or increase to be profitable. A OTM (Out of The Money) has to move to be profitable. Move within the expiration Period that is. The OTM will also react slower (Nadex Price ladder) to price movement than the ATM Binary. Hope this helps.

#3

Thank you. very helpful. One more question. Say I am in the same trade. In am in a fornex atm trade USD/JPY The market direction on this binary option fornex contract goes does down on a put. Can I make over 50 dollars on a atm the money contract or series of contracts 50/ 50? To put it more clear will each contract have the potential to make over 50 dollars if the maket moves very strong my direction? or is each contract caped at 50 dollars on a 50/50 option? It will save me a lot of time and hard earned experiance, I appreciate the helpful answers!!

#4

If you bought at 50 and you held to expiration and it expired in your favor, the most you would be able to make is 50 dollars minus fees per contract.