In binary options you can trade and profit from any market you choose. Most brokers offer a wide variety of assets for trading which include forex pairs, individual stocks, indexes and commodities. Binary Options that are traded over the counter are commonly referred to by several names however are most well known as European Options.
Binary option trades allow you to open positions for predetermined periods of time. Below is a listing of the types of trades brokers are offering these days as well as some unique offerings.
Up / Down – These are your standard binary option trades. The number one thing to look at here is that in binary options you only need a 1PIP movement in the right direction to get the full payout. Most brokers offer returns between 70-81%. The main thing you need to look at here are the time frames you wish trade. The typical trading platform offers trades of 15 minutes, 30 minutes, 1 hour and in some cases even more. Longer term trades such as 2 weeks or 1 month can be more fun to track but less engaging. The newest expiry time available was introduced by broker TradeRush and is the fastest expiry on the market today, 60 seconds!!!
Call option: This is the right of a trader to buy a contract at a fixed market rate. This is a prediction of upward market movement.
Put option: This is the right of a trader to sell a contract at a fixed market rate. This is a prediction of downward market movement.
DOUBLE UP – When your trade begins to near its expiry time and it looks like you have chosen the correct direction this gives you the choice to increase your investment by extending it to the next expiry time for a onetime fee and chance for higher payouts.
ROLLOVER – This feature is a stop loss strategy that gives traders the chance to postpone the expiry of an option already placed. You will want to take a look at this feature when it looks as though your trade is not going to hit its target expiry rate and you want to extend it for a chance to expire in the money.
Option Builder – Many brokers have started to offer their clients to build their own option. The trader has full control here in regards to the asset to trade, amount to invest as well as return percentage. This is a very unique trade as you can choose to receive a lower percentage if the option expires in the money while still being able to retain a higher percentage of your original investment if the trade ends out of the money.
One Touch– One touch trades are explained in the Glossary section. These trades are longer term and available with most brokers during non market hours as well as market hours. The difference here is that the chosen asset or instrument must reach a predetermined price in order to be In the money. With up / down options a movement of only 1PIP is needed. These options typically pay out much more than up/down options and can reach up to 700%.
No Touch – As the name suggests in this type of binary trade the trader places an option that will profit only if the price the underlying asset or chosen instrument will not reach a specific level before the expiry time. It is important to note that the further away the trigger is from the current market price the lower the payout will be as the likely hood of market rates not reaching that price is high.
Double One Touch – This type of binary option traders set two price levels. They will make the full profit percentage either of these levels are reached. Double one touch binary options are normally traded when traders are expecting high volatility in the market but are unsure in which direction the market will go.
Double No Touch – Double no touch options are in essence the opposite of double one touch.