Binary Options Types

Binary Options

You making the decision to get involved with binary options is a very good one. Binary options offer you a good way to make a lot of money while at the same time allowing you to risk only a small amount. The core aspect of trading binary options is that you can either win or lose, plus the return is fixed. Every binary option you get into is only going to have two possible outcomes. The majority of brokers you will look at will offer you different options, some more than others. You only need to understand what the main types are though.

Different binary options trading types will allow for you the trader to come up with a sound strategy that you feel is going to work best for you. The different binary options allow you to take advantage of price volatility concerning various assets or even currencies. Following are the main types of binary options trades you will want to consider. Each of these has it benefits and drawbacks. Your ability to be successful with binary options will come down to you knowing which one of these types to use and when.

Traditional binary options or Call/Put binary options

The most frequently used type of binary options and also the most easiest to understand would be the Call/Put binary option. In order for you to get involved with this type of binary options trading you will need to make a decision on which way you feel an asset is going to move. Do you believe it is going to move up or do you believe it is going to move down. You will have to choose a time frame you believe this will happen in.

If you believe an asset price is going to go down then you would purchase a put binary option. If you believe an assets price will go up then you purchase a call binary option. The majority of these binary options types are going to expire in a few hours or a few days. They are made to be short term. There are longer term options available though.

Touch binary options

Touch binary options are a really good way for a trader to take advantage of price volatility. The time factor does not really play as strong of a role with these as with the Call/Put option. The only thing you need these to do in order for you to be successful is have the price touch a certain strike point during the life of the contract. If this happens then you are in the money. The only way you can lose this type of binary options trade is if your strike price is not touched at all. It does not matter what the final price is. The price targets you can set can be low or they can be high.

If you are a really good binary options trader and you know how to collect information then binary options trading will be very powerful for you.

60 Second Binary Options

If you are a trader who is into making really quick binary options trades, then you will like 60 second options. With these there is no delay. The turnaround times for these is one minute. The only way to be successful with 60 second binary options is during times of the day when the market is really volatile. This binary option is also good when the market is experiencing very strong price rallies. If you are at least an intermediate trader or an advanced trader then this option is for you. In order to succeed with these you must have the ability to see strong price moves coming. It is not something novice traders will be very good at.

Boundary Binary Options or Range Binary Options

With range binary options you are able to pick out two different price targets that are going to represent a higher and lower range for an asset. The range is referred to as a boundary, and it gives you the trader a lot of flexibility to pick whether or not an asset price will stay within the two price amounts you have set or if it will move past it.

If the price of an asset touches either one of the boundaries you set then this would lead to you losing the trade. The goal with this form of binary options trading is for the contract to expire before the price levels selected can be reached or surpassed. This method works well for traders who are able to foresee high price volatility over a certain period of time and make good decisions.

These are very basic types of binary options trades you can get into. All of them are made for a certain type of investor. For instance, the Call/Put trader will usually be the beginner or the person who does not have that much experience in binary options trading. The Boundary binary option will be best for those who have experience and can make good estimates concerning how long of a position they should take. Most brokers you go to are going to offer different forms other than what is mentioned here, but these are the types you should focus on more than anything.

As you gain experience you will learn how to leverage the different types of binary trades in order to minimize your risk, but this is going to take some time to do. Starting out with a basic approach and working your way up to some of the more advanced forms of trading will help you gain the skills needed. Once you are advanced enough, you can experiment with some of the really advanced types that some brokers offer.
For example, some brokers allow you to design a custom binary trade. But when you do this you are taking a lot of risk. So it is not for people who do not have experience. Binary options trading can make you a lot of money, but you must make sure you know what you are doing first on a basic level.

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