Binary
options are meant for investors throughout the globe for trading. This is
because only binary options trading can provide high return. Also binary
trading involves low risk, with easy concepts and can be done easily, and hence
attract more attention. Not only are the new traders, even the experienced
traders too interested in binary trading.
The only
thing that any trader taking up binary option trading should take care of is
the expiry time. No matter whether the trader has opted for long term or
short-term trade, this is the best thing to do. The expiry time vary from few
minutes to many days. Also there are various assets available and these assets
are stocks, currency pairs, commodities and indices.
The binary
options which are known as digital options are excellent for those who want to
earn dual benefits both by manual as well as internet trading. It is not at all
tough to earn money through binary trading. The only thing the traders have to
do is to do the estimation about the movement of the option and then take a
decision. If the decision is correct then the trader earns good returns.
However, a wrong decision would not give any financial benefit though the loss
would be insignificant. There are two types of possibilities in binary trading
options, one is “in the money” where the trader earns good amount of money and
the other one is “out of the money” where the trader gets no financial rewards.
Here are
the types of binary options
available in the market. These are:
- Above/Below: This option is also known as
High/Low and it is the most popular among the binary options. In this type
of binary trading, the trader has to provide the estimation of the rise
and fall of the value of an asset. There are two options ready for
purchase in this type of binary trade. The call option is for those
traders, who estimate that the price of the asset would be higher than the
strike price. The ‘put’ option is for those traders who estimate the value
of the assets to be lower than the strike price.
- Boundary
or Range option: In
this option the trader has to estimate whether the price of a particular
asset would be within a specified range when the expiry time approaches.
There are various types of values that are given and the traders have to
estimate whether the price of the assets are within that range. If the
trader choose the “In” option, that means that the trader would estimate
that the price of the asset would be within the range of upper and lower
value specified. If the trader chooses the “Out” option, it will mean that
the asset price would be outside the specified value range.
- Touch:
In this binary
option, if the trader chooses the “Touch” option, then that means that the
trader is estimating that the price of the asset will reach the strike
price by the expiry day. If the “No Touch” option is selected, then the
price of the asset would not reach the strike price according to the
estimation of the trader.
