Question about Binary Trading

Hi everybody,

I want to trade with binary options with the following strategy, and I have some technical questions. When somebody can show me how to buy and sell the right options I will write a journal about my trades here.
So, I want to do thefollowing things: I want to buy two OneTouch Options: One Option has a strike price ABOVE the actual price, the other OneTouch Option has a strike price UNDER the actual price.
If there is the right price action I will get the options money (100 €) - the money for the options (2 * 38 Euros), so there is a profit of roundabout 24%.

I have attached the pictures for my problem: I dont know if I have to take the Bid or the Ask price?
I think the Ask Price is the price I have to pay when I want to trade, and the bid price is the price when I want to sell before expiration time. But the options are european style and i cant sell them before time! And there is no spread on options.....

I think the question is stupid, but I dont want to spend money just to try.....
I am trading at Saxobank but the support is crap....they dont answer :-(
Maybie my question is stupid, but I dont know another way to get it out.....

Thanks for any replys!

I have attached two pictures: One for the OneTouch option with the strike price ABOVE the actual price, the other for the opponent side....


Ghaz

When it comes to Binary Options

Strike Price and Expiry Price is Bid+Ask/2

Unless there is high volatility on the market you will see slippage

ok, I try to ask in another way:

If I want to BUY an OneTouch option for a strikeprice above the actual price, I have to choose the Ask price?


If I want to buy an option (=sell currency) with a strike price UNDER the actual price, I have to choose the BID price?


I think it is a painful question for a newbie, but I am very tense about it.....

If a pro could answer my question it would be very helpful,


thanks,


Ghaz

You always buy the touch option at the higher price.

In your example you buy the 1.6650 touch at 37.77
and you buy the 1.6250 touch at 37.25.

If you choose the lower price, you say it will not touch.

I would suggest, you open a demo account and do some test trades.

Good luck.

You buy at the broker's ask, and sell at the broker's bid.