As binary option trading grows in popularity, the number of different types of binary option trade types also becomes available, which enables seasoned traders to select the most appropriate method for their strategy and market conditions, as well as allowing novice traders to learn the trading skills required whilst using the basic type. This enables traders of any ability to use the same trading platforms.
Binary option trades have a various selection of expiry periods available including 60 seconds, 10 minutes, 15 minutes, 30, minutes, end of day and so on. You select the expiry time at the time of placing your trade. Once you have placed your trade the platform will monitor it and will automatically close the trade after the selected time period.
The easiest to use trade is the UP/HIGH/CALL or the DOWN/LOW/PUT option. A trader will place a UP/HIGH/CALL trade if they believe that the price of the asset will end up higher than the entry price at the time of the expiry of the trade or a DOWN/LOW/PUT option if they believe it will be lower than the entry price.
The TOUCH BINARY OPTIONS is a well used option which also has a number of varieties including TOUCH, NO TOUCH and DOUBLE TOUCH. This type of binary option trade with predefined levels needed to win the trade, rather than the trader predicting if the asset will increase or decrease. The trader will predict if the asset will reach (TOUCH) a set level or not reach the set level (NO TOUCH) With a DOUBLE TOUCH there are two predefined level. The payout is when on a NO TOUCH the defined level is not reached, on a DOUBLE TOUCH the payout is when both defined levels are reached. This type of binary option trades are typically used over a longer time scale such as 2 or more days.
The 60 SECOND BINARY OPTION is gaining in popularity and is a trade that expires after just 60 SECONDS making it very fast paced trading and is normally used if the value of an asset is clearly moving in one direction or for traders who are able to respond quickly to sudden market moves. They are basically the same as the UP/DOWN but with a shorter expiry time.
BOUNDARY OPTIONS is a form of trade used that is similar to a TOUCH OPTION, they can also be known as RANGE OPTION or TUNNEL OPTION. In this form of trading there are two defined levels. The upper and lower levels are defined (RANGE or BOUNDARY) the trader requires the asset to stay inside upper and lower levels to receive a payout. There are some variants to this type of trade where the asset must stay within the limits.