Trading with binary options can be a lot of fun – not only because they are easy to learn and they provide opportunities to gain a large amount of money in a short period of time, but also because this trading activity comes with a large number of different alternatives that you can use to trade profitably. The reason for this is hidden behind the fact that the market – respectively the different brokerage companies – offers a diverse abundance of different binary option types. Learning them is not only recommended, but considered mandatory for you, because once you are equipped with the necessary knowledge you will be able to build up the best trading strategy.
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Why is It So Important to Be Aware of The Different Binary Option Types?
Before listing the different binary option types for you– with details and a simple explanation of each – we must say few words regarding understanding them. Some of you might not be so eager to learn new things – especially if you are in the early phase of your trading education and the amount of information seems too much for you. You may ask us “Isn’t it better to focus on a particular binary option type in order to make it even simpler when it comes to trading in a real environment and in real time on the market?”. Well, no, it is not. On the contrary – there are many advantages of knowing the entire list of binary option types. And if you still have any doubt about it, read about them below:
- Becoming a professional in trading is a must – If you think that being an average trader will allow you to earn a decent profit, you are wrong. On the contrary – to highlight the best of your analytical skills and for the best trading opportunities you should be armed with a high knowledge base. And when it comes to binary options trading, knowing the types of binary options is the least you must know to be prepared.
- The more binary options available, the more options to profit – The more binary options you trade, the more opportunities you will have to eventually increase your final outcome. This is not a trading maxim, this is in general a lifetime axiom. When you have more opportunities to try, the potential to gain what you are struggling for increases.
- Adjusting to the market movements – It is essential to adjust your binary options trading strategy to the market movements. To this end, we suggest that you constantly keep up to date on the economy and news flow relating to the economy at all times. These are your main sources of important facts to consider and then to trade utilising this information. With binaries things are the same. Some binary options would be more preferable in a certain market, however, others will not be suitable for trading when the same event takes place.
- Improving your education and skills – Practice is everything, and the deeper experience you have, the more advanced you will become as a trader with binary options. However, there is no way for you to advance and to practice your skills or knowledge if you are trading only with the binaries you are aware of. It is better to become an expert in each of them.
- Knowing your strong points – Keep in mind that some traders are considered professionals in 60 seconds binary options, but others just cannot get used to them and they prefer the one touch binaries. If you know all the binary option types and you start practicing trading with each of them, eventually you will see in which one you are an expert and you will focus your strategy to this particular type of a binary.
Discover the Different Types of Binary Options Now
And finally we have reached the main part of our binary option types theme. Let`s review and learn the list of binary option types together! Are you ready? Well, let`s get started then.
High / Low Binary Option Type
The high / low binary options make you ask yourself a question whether the traded asset you have selected will eventually become higher or lower than the previously announced value. The key moment is the expiration date – aka the time, when your prediction is supposed to happen. Note that in trading with these binaries the payout for each trade is predetermined in advance and it is always transparent to you. In most cases you are able to select to sell the option at any time before expiry, for a partial return.
Put / Call Binary Option Type
This binary option type is highly popular amongst traders. But be aware that it is similar to the previously mentioned high / low binary option type. So whatever term you see, the meaning and the explanation, as well as the binary trading philosophy remains the same.
Another good type of options is 60 second binary option which is one of the most common instruments of the binary options traders.
One Touch Binary Option Type
The one touch binary option pays out the trader`s profit once the price of the underlying asset reaches a predetermined barrier. This barrier is known by the term “trigger”. Once the trigger level has been reached, you will be able to get your final outcome – either a profit, or no return. One touch binary options are one of the most preferred types for the trader in the case when he is 100% confident that the asset’s value will generate a strong move in a particular direction (up or down) and will hit the trigger value.
No Touch Binary Option Type
No touch binary option is the opposite of the previously mentioned one touch binary options. With no touch binary you decide whether the underlying asset will not be able to reach the particular value level. Though, just like one touch binary, the trader is supposed to choose the certain price amount above or below the present price through the market changes. Your trade determines if the price will not reach the determined level during the mentioned expiry date.
Double No Touch / Touch Binary Option Type
In both cases – no touch and touch – a double binary option type has the same philosophy as the previously two mentioned option types with the difference that there are two triggers here. Each trigger covers each side of the market price.
Range Binary Option Type
This type of an option usually refers to the high / low binary option type. The difference appears when the trader determines the direction and upper and lower limits of the price change, which is the suggested range. If the option expires without breaching this range, you will receive your profit, because you will be in the money.
Boundary Binary Option Type
Trading with boundary binary option suggests the same methods as those from range binary option type. On the other side, the similarity to the touch binary option – one and no touch – is also very obvious. Here, though, you define two levels of the asset price. A deeper explanation of boundary binary options is here.
Short-term Binary Option Type
The short term binary option is the high / low binary option. Though, here the periods of time are shorter than the previously mentioned 15 minutes. Short-term binary options can be the following types: 60-Seconds, 2-minutes and 5-minutes. These binaries are very preferred by the trading community since they are very quick for trading and even quicker, when it comes to the expiration time and the payout execution. Though, you need some very strong intuition and good skills in fast reaction to the market changes if you want to trade with the short-term binary options types.
Imagine that you are already on the best binary options broker site– what binary option type will you prefer? Isn’t it just better to consider testing and trying them all till you find out which one you are good at? Different binary option types might distinguish according their expiration date, as well as according to their specifications, but all of them are excellent ways to make fast money without the necessity of huge analysis and reading. Consider each of these types and do not hesitate to share your experience with them! We wish you good luck and great trading experience with the binaries!