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What Kinds of Binary Options are there?

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There is actually not just one kind of binary option and it’s good to have some awareness of what is out there. All types of binary options are based on call or put betting options.

Before you start trading, you need to set up an account. You can open a free live account at 24 option.

Cash or Nothing

With this binary trading option you set the strike price of the merchandise, the asset price controls the price. This is the most manageable form of all the binary trading options, and is easy even for new investors. You just have to make a decision of whether the price will increase or decrease within the contract’s period. Additionally, you have the option to call if you feel that the asset price might be at a higher than market value. But if you feel the asset price will decrease from the current market price it’s better to buy “put” options. These options are capable of gaining a fixed amount of approximately 16% of the stock or nothing in relation to the predictions before the expiry date.

Asset-Or-Nothing

These options require you to directly predict the price of the asset to gain a pay-out equal to the price of the asset, if it goes through. Payouts in this case are not determined by chance as the asset price determines the actual pay-out.

No Touch

Nicknamed Lock in or Touch Digital, you receive a pay-out when the binary option expires and reaches or exceeds a pre-determined point. Either the price will hold off during the contract’s timeframe or will rise to prearranged levels; the contract ends when you get to this level.

Double One Touch and Double No Touch

Dubbed Lock Out or Range binary options. Investors in this case receive a pay-out only if at the end the binary options never reached or exceeded any of the two pre-determined points. It is similar to the Double One Touch binary options, where both the levels must be reached by the asset price within the contract’s duration.

Double One Touch binary options are where you pay-out at expiry if the option reaches or spreads over any one of two prearranged points. If any barrier is touched at the expiry time the trade is out of the money and the investor fails to receive the payout.

One Touch Binary Trading Options

Also called the Lock In or Touch Digital. You receive the payout on expiry if the option reaches or extends the pre-determined point. In this binary trading option, an investor is expected to set a strike price which assumes the asset will hit within the expiry date. The investment is successful if the asset reaches the trigger and the investor gets a predetermined fixed amount according to the contract.

Category: Investing
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