TYPES OF BINARY OPTIONS

kinds of binary options There are different types of binary options, every one with different trading model. Today in the options market, generally there has recently been an invention of different kinds of binary options trading through different brokers. Binary options involve making a prediction of market price direction of an underlying asset. An underlying asset can be a commodity, stock, index or currency; it's much more like a 50/50 win situation. In this post, we shall discuss these types of binary options TYPES OF BINARY OPTIONS 1. 'Higher/Lower' options: This is the type of binary options that you must predict whether the price should go up or downwards within a specific timeframe. If the price at the time of expiration moves above or below your entry point you will either win or lose eg. Let's say you made a call option at 1.4567 for apple stock on 1 hour timeframe and at the particular time of expiry the price moved above 1. 4567, you will make a profit but if the price moved below 1. 4567, you will make a loss on Apple stock. The volume of loss or profit that a trader will make depends on the pip value.

The higher the pip value against your current entry point the higher your loss value and also the higher the pip value in line with your entry point the higher your win value.

2. 'Touch /touch "options: This is a type of binary options that requires a trader to predict if the price of an asset will touch a particular point within a specific time which has been stipulated by the broker. E.g. The options may read ''Will the value of Apple stock touch 1.4567 point within one hour, if you predicted touch and at the right time of expiry the price of Apple stock touched 1.4567 point you win the option and vice versa.

3. 'Boundary' options: This is a type of binary options that requires a trader to determine whether the actual price of an asset at expiry will fall within or outside a certain range. E.g. The options will read ''Will the price of Apple stock fall within 1.4567 to 1. 6789 at expiry of one hour, if you forecasted 'fall' and at the period of expiry the price dropped within 1.4567 to 1.6789 you win and vice versa.

4. 60 Seconds Options: This is actually a type of binary options that requires a trader to predict whether the particular price of a asset will go up or down within 1 minute. Eg. Let's say a trader made a call option at 1. 4567 for apple stock on 60 seconds timeframe, if at the time of expiry the price is above 1.4567 point, you win but if it's below 1. 4567, you lose. So this particular type of options requires a trader to create his decisions as fast as possible. many traders choose this type of options because you earn more money within a short period of time when compared with various other to be be succesfull in trading binary options involves risk taking binary options signals