What Are Binary Options?

What Are Binary Options? Binary options trading is one of the more profitable types of investments out there. Some see it as simpler or more enjoyable than the typical purchase and sale of stocks and other assets. To put it literally, the word binary means ‘having two parts’, which is why binary options trading has only two investment possibilities for you to predict and choose between – Call or Put.

Binary options trading is an investment that works more like a prediction that can be either right or wrong, but nowhere in between. An investor bets that a given asset will be above or below a certain point after a fixed amount of time. That time can vary greatly, but it can be as quick a turnaround as 30 seconds.

If the prediction is correct, the investor will recoup his or her investment plus a bonus on top—if they’re wrong, the investor loses the entire amount put into the venture. What Are Binary Options?

Different types of Binary Options:

There are different types of binary options, all with their own individual benefits and features, which you can use depending on your own preferences and the different markets’ formations.

High/Low: If you select this option, you are choosing whether the market price will close above or below the current price. So, by calling a Call option – the price must stand above the striking price at the time of expiry; and calling a Put option – the price must stand below the striking price at the time of expiry.
Quick: A Quick option is exactly as the name suggests – it allows you to make quick and profitable returns. The expiry times will range between 30 seconds to one hour, with its prime objective being that you’ll make quick returns.
One Touch: One Touch trading will allow you to decide if the market price will reach a certain value before the expiry time. If you believe that the price will rise above the upper line presented on the graph you would put in a Call option, and if you believe the price will fall under the bottom line presented on the graph, you will put in a Put option.
Range: Range trading has both an upper and lower option target price which eventually forms a boundary range. To put in a Call option, the price needs to remain higher than the striking price and lower than the upper line at expiry. To put in a Put option, the price needs to remain lower than the striking price, and higher than the lower line at expiry.