Binary options, also known as digital options are type of online trading with two possible outcomes-yes or no. It is based on prediction in what direction will price of an underlying asset go with predetermined expiry time. Fixed payouts and fixed expiry time are considered to be an advantage in binary options trading.
Traders in South Africa who are interested in this online type of trading will find this as an excellent solution thanks to ability to know in advance how much money can they earn and at what specific time will an option expire. Read below to know more on what are binary options types.
Binary Options Types
In binary options industry, a lot of brokers offer a wide range of trade options for traders worldwide to choose from and start their binary options experience. Traders can choose among selection of available trade options, some of them are short term, while others are long term.
Each binary options type has its characteristics and different profit ratio. For example, traders beginners and experienced traders have different knowledge level of binary options trading and it is assumed they will choose those types that suit them the most in order to achieve success while trading binary options.
Majority of reliable binary brokers provide traders with following binary options types: High/Low, 60 Seconds, One Touch, Boundary, Ladder Options etc. More detailed specifications we will provide you below in our article. Choosing a right trade option is very important because it defines trader’s investment preferences and if it turns out to be good choice, one can achieve success and maximize profit while trading binary options.
Entire trading process with binary options is based on market trends and analyses and with a wide range of different trade options, each trader can choose those options he finds he’ll be successful in binary options trading. Check below more detailed information about binary options types.
High/Low Binary Options
In binary options industry, High/Low is for years now, considered to be the most popular trade option used by traders worldwide. It is based on prediction will the asset price rise or fall compared with strike price in given fixed expiration time. Let’s say you choose gas as preferred underlying asset within time frame of one day. You have to predict whether price will go up or down and monitor how the market reacts.
If you think price will rise, you choose call option and if you believe price will be below the strike price, then you choose put option. Great thing with binary options trading that in any given money, you can know what is your potential money gain or loss.
60 Seconds Trading
Trading with 60 Seconds is a short term trade and also very popular in binary options trading. In case if asset price clearly goes in one direction, traders can conduct a number of successive trades to make trading process more profitable. 60 Second option is first choice of traders who enjoy excitement while trading and are able to respond very quickly in any market changes that might happen.
One Touch Options
Another one of the most used trade options in binary world are Touch Options. Touch Options work on principle whether asset will touch the strike price in specific expiry time. So if you make right prediction and it does touches the strike price, then option is “in the money”. With One Touch traders can achieve return between 75% – 85%.
Boundary Options in Binary Options
Boundary option is very similar to Touch options with one difference. With Boundary, there are available upper and lower limit where the price can range from. In order to profit from Boundary option, chosen asset has to remain between those two limits. This option is excellent for stable markets, who are not affected by often changes.
Ladder Options in Binary Trading
Ladder Options belong to the latest available trade options in binary industry. They are mostly used by professional traders with years of trading experience, who have knowledge skills to properly and on time predict market fluctuations in real time trading.