Wednesday, February 27, 2013

Various Types of Binary Options


Binary options are meant for investors throughout the globe for trading. This is because only binary options trading can provide high return. Also binary trading involves low risk, with easy concepts and can be done easily, and hence attract more attention. Not only are the new traders, even the experienced traders too interested in binary trading.

The only thing that any trader taking up binary option trading should take care of is the expiry time. No matter whether the trader has opted for long term or short-term trade, this is the best thing to do. The expiry time vary from few minutes to many days. Also there are various assets available and these assets are stocks, currency pairs, commodities and indices.

The binary options which are known as digital options are excellent for those who want to earn dual benefits both by manual as well as internet trading. It is not at all tough to earn money through binary trading. The only thing the traders have to do is to do the estimation about the movement of the option and then take a decision. If the decision is correct then the trader earns good returns. However, a wrong decision would not give any financial benefit though the loss would be insignificant. There are two types of possibilities in binary trading options, one is “in the money” where the trader earns good amount of money and the other one is “out of the money” where the trader gets no financial rewards.

Here are the types of binary options available in the market. These are:

  • Above/Below: This option is also known as High/Low and it is the most popular among the binary options. In this type of binary trading, the trader has to provide the estimation of the rise and fall of the value of an asset. There are two options ready for purchase in this type of binary trade. The call option is for those traders, who estimate that the price of the asset would be higher than the strike price. The ‘put’ option is for those traders who estimate the value of the assets to be lower than the strike price.
  • Boundary or Range option: In this option the trader has to estimate whether the price of a particular asset would be within a specified range when the expiry time approaches. There are various types of values that are given and the traders have to estimate whether the price of the assets are within that range. If the trader choose the “In” option, that means that the trader would estimate that the price of the asset would be within the range of upper and lower value specified. If the trader chooses the “Out” option, it will mean that the asset price would be outside the specified value range.
  • Touch: In this binary option, if the trader chooses the “Touch” option, then that means that the trader is estimating that the price of the asset will reach the strike price by the expiry day. If the “No Touch” option is selected, then the price of the asset would not reach the strike price according to the estimation of the trader.

2 comments:

  1. no doubt binary options is exciting trading platform becoming popular day by day. according to me trading in any market is always risk. but by taking in depth knowledge we can become master in trading. proper strategy will surely help to earn good profit. Know about Binary Options UK

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  2. Finally, this is where novice and seasoned traders agree on: binary options trading. Both have expresses interest in investing for the long term with binary options. It is more profitable, and yet with lesser risks as a trader will know exactly the profits for every trade. There are many trading platforms that give binary options services; however, there’s one that is always included in the list of top performing brokers. Trading binary options 24option.com has definitely given investors the confidence that only a reputable broker can bring.

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