Chris C


#1

Sorry but I gotta ask this basic question:

A long out of the money binary is when the FX price is below current price and you think that it will stay below?? And opposite for a short position??..

*Best to trade these during times with good volatility *Low risk and less profitable??


#2

No…

A long OTM binary is when the binary strike price is above the current (underlying) price. In order to be ITM at expiration the underlying needs to move up. In a short the underlying is above the binary strike price, and needs to move down to be ITM.

If you are trading OTM, you need to have reason to do it, and volatility needs to be involved.

They are low risk in the sense that you are putting less money at risk in the trade, but the probability of success is much lower.

Happy trading!!! Brad