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Odds in relation to binary payouts.

fxanywherefxanywhere Posts: 18

Guys maybe it is a very stupid question but I can't sort out a mess in my head. The problem is that I can't understand why trading with fixed deposit can give you different payouts. Take for example Optiontrade broker. In trading products Long term, Classic, 60 seconds payouts are only 85% but in one touch there is stumbling 550%. Where is logic? Guess the answer is in percent of probability, but not sure.. What do you think on that matter?


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    kostaszekostasze Posts: 227 ✭✭
    edited July 2014
    it's related to the strike price. In "one touch" option the strike price is far away from the current and it's almost unlikely for the asset to end in the money. That's why you can see a 550% return because it's unlikely to happen.

    Kind Regards,
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    usokusok Posts: 16
    now i get it.. the higher the payout the more harder for it to happen. i guess. thanks kostasze. i hope it also cleared fxanywhere's question
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    optiononeoptionone Posts: 36
    I also wondered why in the new trading type offering by OptionTrade, ladder, there always a high payout up to 4xx or 5xx % and super small 100% for an up or down option and otherwise. Anyone know the principles here? Please share.
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    BryanMacBryanMac Posts: 851 ✭✭✭
    ill do a vid to much typing to answer that clearly.
    Bryan Mcafee
    Hit me up on skype at Brymcafee (McAllen TX)
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