3 Types of Binary Options to Choose From

Posted by tradesolid on April 29th, 2016

Everybody is using binary options trading to earn profits and so can you even if you are not that of an expert. In case you are beginner, you have to be aware of what this system is about and how can you make the most out of it.

Depending on the broker you choose, you will come across 3 types of binary options. Usually the average earnings ratio lies between 70 to 90 percent and it might vary from one broker to another. In order to get started, let’s have a look at the types of binary options:

1. Up/Down Options

It is also known as the high/low or above/below system and it is one of the most common types available. All you have to do is place call option if you think that the closing price of the asset will be higher than the strike price at the time of expiry. The second option is to use the put option which shows that the closing price is going to be below the strike price at the time of expiration. Although it is the simplest form and it is meant for the beginners but the problem is that the payout is quite low. You also have to be careful when it comes to managing the risk.

2. Touch Options

You don’t have to worry about the market being above or below a certain level of expiration. You simply have to TOUCH the strike price at least once during the option contract period in order to make it profitable.

The touch traders are offering during certain times through the day. Some of the brokers re even offering them during the weekends, providing high payouts. This type of option broker works well when the volatility picks up. Some of the systems in order to make trading even more exciting provide the double touch or double no touch option having 2 strike prices only. The price of the asset is supposed to touch 2 different levels for the trader to win.

3. Range Options

This binary options trading type is like super Mario underwater as he cannot touch the top or the bottom of the screen. There are in range and out of range trades. For the first one, the market price must stay in the predetermined range and it should not touch the two strike prices when the option period for the trade to be in the money. For the latter one, the traders can make profit if the price break out of the predetermined range within the option period.

Now it is up to you which binary options trading type to choose if you are looking forward to make money. You can try each one and choose to trade with the one that you are most comfortable with. It is not going to be difficult, all you have to do is get your act together and start focusing on the one that you think will bring you the best outcomes in terms of profits and ease of use.

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