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Binary Options Types

Binary Options Types! Introduction of 5 major types of binary options: cash-or-nothing, asset-or-nothing, one-touch, no-touch, and double-one-touch/double-no-touch.

1) Cash-or-nothing options; this is the most common type of option, as the name shows, this is a predetermined fixed contract in which you either win or lose the entire amount traded; the entering price and expiry time are also predetermined so there are no variables to focus on. You choose the prediction, up or down, and wait for the expiry time to find out the result.

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2) Asset-or-nothing options is a type of option where the stake is the asset itself, rather than the amount of money invested; in this type of option, the traders wins or loses the value of the asset he traded, depending on the price of the asset at the expiry time.

3) One touch binary options are a different type of trade from the two already presented above. In this type of option, the trader has to predict if an asset will “touch” a specific price level during the specified time of the trade.

4) No touch binary options trading is the opposite of the one-touch option; the trader predicts whether an asset price will not touch a specific level during the specified time.

5) Double one-touch and Double no touch are similar to the types 3 and 4 described above, with the single difference that there are two levels this time. In the double no-touch option, there are two price levels that the asset needs to hit before the expiry time, while in the double no-touch option, the asset price trend mustn’t touch any of those two levels until the time expires. Binary Options Types

Almost all brokers use in their Binary Trading Software these ways of transaction.

Any trading type will have two options known as the call option and the other one is the put option. A call option is a right the trader enjoys for getting a contract for an amount that is determined in advance. The put option is the right the trader will get for making a sale of the contract at an amount that is again finalized in advance.

Binary Options – what are they?

Binary Options – what are they? Binary Options Trading is the easiest and fast way to trade Stocks, Indexes, Forex, and Commodities online. You need to focus on just three elements: the asset, the time period, and the prediction. Basically, in binary options trading (also called digital options trading) you just need to predict whether the price level of an asset will increase or decrease in a given period of time.

This article will give a brief introduction to Binary Options Trading and how they are used today.

If you predict that at the end of the specified time the price level of the asset you are trading will be higher than the current level, that you should place the CALL option. In reverse, if you think that the price level of the asset will be below the current level, you should select the PUT option.

If by the specified time your prediction was correct, this means that you are “in the money” and you will get up to 85% of your initial investment; if your prediction is incorrect, it means that you are “out of the money” and you will lose up to 100% of your investment. In some cases, the broker offers you special trade deals in which, even if you lose your investment, you will get back 5% to 15% of your initial investment. Binary Options – what are they?

How are binary options traded?

Here’s a bit of binary options trading explained. Remember, you need to focus on three things: the underlying asset, the prediction, and the time period.

– The underlying asset – whether it is a commodity, index, share, or currency, you should concentrate on trading those assets you are most familiar with;

– The time – for each option, at the moment you make the trade there is a time limit specified; when the time expires, if your prediction is correct, you win, if not, you lose; the time range can be from one hour to several days, according to the specific trade conditions;

– The prediction – is based on whether you think that the price of a certain asset will go over or under the current level; if you predict right, you can make a nice profit of up to 85% of the amount you invested.