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Binary Option Types of Trading

Brokers will offer you an extensive range of digital Binary options trade types, and you are able to choose whatever that suits your trading strategy the best.

High/Low

This option is very popular due to its simplicity. This higher/lower binary strategy is the classic base of binary trade. It is also called "Call/Put" option. All you have to do is to predict if the asset price is going to get higher or lower than the entry price before the contract expires.

 

You would choose "Call" option if you guess that the asset is going to result in higher position than the current level when it expires. If you think that the asset is going to be lower than the current level when it expires, your will go for a "Put" option.  A great number of brokers offer this kind of option on an hourly or end-of-day basis. Interesting news is that more and more brokers are now offering trade with shorter time periods.

 

The asset and the yield offered by the brokers determines the amount of payout you earn for profitable trades. Usually, traders can expect a return more than 70% up to around 90% for these option types.

Touch Contract Options

The touch binary option contract is attracting an increasing number of traders from all over the world and consequently being available at a lot of binary broker's sites. When using this options, you are going to predict if the underlying asset's price is going to touch a set level before the contract expires or not. The level that we are talking about here can be either higher or lower than the asset's current price.

 

The amount of payout is determined depending the asset price reaching the target price set or not when placing the contract. If it touches the level then the trader is going to get the agreed return. If not, then there is no gain.  These option forms are usually available on a daily basis. Some brokers are providing their traders with weekend one touch options as well. But most of the time, the broker will set the target distance provided in the contract.

 

You will see the similarity in returns provided for these options and that of the High/ Low contract, although you will have the chance to gain up to 700% with some of the weekend contracts.

Boundary Contract Options (Range)

In both the Boundary binary contract options and the Touch options, a price level is specified on an asset. But in this case, two levels, specified upper and lower target, will be combined to form a boundary range. If the options is to pay out, neither level won't be touched for before the contract expires.

 

The best time to utilize the range trade is when you see that volatility is low and you believe you can earn money from movement in the asset's price that is rather quiet.  Other than trading the asset price in order to remain within the range, you are able to have the chance to make money from the asset's price going beyond a set range. Similar to the Touch contract, this is taking place on the predicted volatility of asset's price movement.

60 Second Options

The sixty second option is very similar to the Call or Put option except the fact that this option comes with the shorter expiry time. Traders can expect fast payouts using this options, but this is not the simplest form of trade because of the short time frame. The advantage of 60 seconds options is that they can be useful to profit consistently from a trend.

 
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