Alpari Russia Starts Offering a New Type of Spread Attached Binary Option

The new binary options type offered by Alpari Russia is called Spread High/Low. It is essentially adding a spread to

alpari logoAlpari Russia is introducing a new type of offering for clients of its binary options service – the name of the new tool provided to traders is Spread High/Low. In a nutshell, there is a spread added to the market price for those more volatile times when a trader is more confident that a bigger move is going to occur in a given asset.

While the offering is marketed as an increased opportunity for higher profits, coming with a 100% payout, there is no free lunch, meaning that the risks associated with trading these particular options are higher because of the handicap on the market price.

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Alpari Russia is serving as an agent to a company named Binary Products LTD, which is registered under the laws of Saint Vincent and Grenadines.

Alpari Russia’s Binary offering provides a number of solutions for users. traders can trade using the High/Low, One Touch, and four other order types that allow users to dictate their own terms. The firm offers a web-based trading platform, coupled with its mobile offering on the iOS and android system.

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Binary Options trading continues to evolve as participants on both sides of the spectrum establish themselves in the short-term trading approach. The ‘gamification’ of financial markets has resulted in traders exploring trading instruments such as Binary Options that meet the needs of their short-term trading objectives and can be used in fast moving markets.

We will have a more detailed look at an example of the new binary options play offered by the company.

GBPUSD Chart
GBPUSD Chart, Source: NetDania

In this particular case, we have chosen to buy a Spread High option on the GBP/USD forex pair. The market price of the GBP/USD pair is 1.6094, however, in order to play the Spread High/Low option a markup (or markdown in the case of a Spread Low option) is being added. In the given example the markup is 6 pips – so the trader would bet on the price of the GBP/USD to close above the final price which is the market price plus the markup.

For those of you familiar with sports betting, this is essentially a handicap bet. Just as a football team can have a goal or two (or more) added to its score to add to the final result of the game, the Spread High/Low binary option’s end result will depend on the market price closing above/below the bet’s price which is formed from the market price plus the spread.

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