Types of Binary Options

Many types of binary options are available for trading and this may seem a bit confusing for new and even some experienced traders. You can choose the type or method you want to use depending on your trading needs. If you are an experienced trader you may choose various methods depending on the prevailing market conditions. The traders may place the trade after determining how the markets may react to external announcements, influences, trends, results and other specific conditions.

Popular methods of binary options trading

Digital option - This type of trading is commonly referred to as up/down and call/put option. In this method the trader places a call option if they believe that the price may end above the entry price after the contract expires and a put option if they believe the price end below the entry price. The various expiry periods that are available for trade include 60 seconds, 15 minutes, 1 hour, end of day, end of week and others.

After the trader places the trade, the platform monitors the trade automatically and exits at the specified time. You do not have to log into the system to complete this transaction. Email notification is send at the end of the closing session on the status of each trade. The status of the ongoing trades can be easily followed by the trader from the account portfolio page.

Touch option - This option has many types of varieties that include touch, no touch and double touch. In this predefined rates that are necessary to profit in the trade are indicated instead of the trader predicting whether the value of the underlying asset may increase or decrease.

You may predict a level that it may touch or not touch. The level that is predicted can be higher or lower than the current price of the asset. Purchase of options can be done at the weekend after the market closes. The asset then trades during the week and if it passes over the specific level on Monday then it is declared a win. No touch pays when the defined level is not reached and in double touch two levels are defined and pay is possible when either of the level is reached.

60 second option - This is fast becoming a popular method of trading where the trade expires in 60 seconds. The advantage of such trading is that when the asset is moving in a particular direction the trader may place successive trades to maximize profit.

Boundary options - This method is referred to as range or tunnel option and is similar to the touch option. Two levels are defined in this method known as upper and lower and the trader makes money when the asset stays within the level.

The trader may choose different types of binary options depending on the prevailing market conditions to maximize profits.

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