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Published On: Mon, Apr 8th, 2013

High option

An option on a high/low system offering a specific rate of return.

The high option usually offers a 75% return when the underlying assets expires at a higher than expected price point and a 15% refund if the underlying asset sets up to expire at a lower level than the target price.  A high/low instrument is an instrument that lets the investor decide if the underlying asset will be above or below the target price at the expiry time.  A low option is similar to the high option, but in reverse.  It offers a 75% return if the underlying asset expires at  lower than the expected price point and a 15% refund if the underlying asset expires at a higher than expected target price.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

 

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