Various Types of Binary Options

tradingBinary options are of various types with which you can trade. A new trader may get confused with the variety of binary options, but even an experienced trader may be overwhelmed. If you want to trade in binary options, you must first study the many types and then choose one that suits you the most. The type you have to choose usually depends on the current market conditions and how the market gets influenced with outside factors, declarations, outcomes, trends and more.

Digital Option

Digital option is the commonest binary option and often known as UP-DOWN option or CALL-PUT option. In this option, you have to place a CALL if you believe that the price will go above the entry price after the contract’s expiration and a PUT if you believe that the price will go down. You should just determine if the digital option will end at a rate higher or lower than the active trade rate at the time of your entry into the trade.

Touch Option

Touch option has numerous types like TOUCH, DOUBLE TOUCH and NO TOUCH.

There are predefined rates required to win the trade. Instead of the trader just guessing whether the cost of the underlying asset will rise or decline, s/he can guess the level at which it will touch or not (no touch).

60 Second Option

As its name suggests, this option expires in 60 seconds and is getting great popularity. Its benefit is that if the cost of an asset is obviously moving in a direction, the trader can conduct many successive trades and maximize her/his profit. This is a great option for those who are interested in quick rewards and who can respond fast and effectively to abrupt market alterations.

Boundary Option

Boundary option is sometimes known as Tunnel Option or Range Option and resembles the Touch option; however, in boundary option, two levels – upper and lower – are defined and the trader has to have the asset within this boundary to get a payout.

The variables in this type are where the asset should be between the limits and where it ends between the limits. It is perfect for a stable market while trading within the boundaries and for a volatile market while trading out of the boundaries.

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