As a trader you need to be aware of the other types of
binary options if you want to trade successfully in this market. You can choose
the type depending on your specific trading needs. The type can be decided
depending on the prevailing market conditions and trends. You can make the
choice based on the best payout that is offered in the market.
Up/down – This is
the most common type of binary option and is also known as call/put or high/low
option. The trader speculates whether the underlying asset may close up or down
at a predetermined period. You can choose to take a long or short position. The
various expiry times available to traders include 60 seconds, 15 minutes or one
hour, end of day or more than one day.
After the trader choose the expiry period they do not have
to monitor the trade as it automatically expires at the specified time. The
closing status of each trade is notified to the trader and this helps keep
track of the profits.
Touch/no touch or
double touch – In this type the trader predicts if the value of the asset
increases or decreases. They predict if the value touches or does not touch the
level specified. It can be at a level that is lower or higher than the current
value of the asset.
The traders may be able to purchase the options during
weekend when the markets are closed. When the markets start trading during the
week and if the asset touches the level that has been specified then the trader
makes a profit. No touch is when the
level is not reached. In double touch there are two levels that are specified
and if either one of them is touched, it is a profit.
60 second option –
It is a popular type where the trading expires in 60 seconds. When the asset
starts moving in one particular direction then the trader can take advantage of
it by placing multiple trades so that they may be able to maximize the profits.
As the expiry time is very short it is important that the trader recognizes the
trend and responds immediately.
Boundary option –
It is also known as range or tunnel option and is similar to the touch option. The
upper or lower level boundary or range is specified and the underlying asset
needs to stay within this range so that it is profitable. You can choose this
type of trading when the market is stable. It is best avoided when the markets
are volatile.
Some brokers offer other types of binary options that can be
created by the traders themselves. This can enable the trader to use analytical
tools to follow the movement of the asset during the option period.
http://www.top10binary.net/types-of-binary-options
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