Binary Options Types

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Several types of Binary Options can now be traded online using a variety of binary options trading strategies. This diversity in binary options types offers investors with different opportunities, and if fine-tuned, could be mastered and become profitable in the long term to the Binary Options trader. Some of them include; High/Low: The most commonly available binary options are “High/Low” also known as “Above” and “Below” or “Call/Put” binary options. Basically, a trader will receive a payout on a long binary option if the market is higher than the strike price of an above binary at expiration, or under the strike of a below binary.

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One Touch: Some online binary options trading platforms also offer “One Touch” above or below binary options that generate a payoff as soon as their trigger level trades in the underlying market… even before the expiration time.

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Boundary: Another popular type of binary option is the “Range or Boundary” binary that is characterized by a range that is compared to the underlying market at the option’s expiration. Typically, an ―in‖ range binary pays off if the market ends up inside the range, while an ―out range binary pays off if the market ends up outside the range.

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Given the various types of binary options, it is important to go through all the ones available on the site you wish to trade on. Some brokers offer more diversified trading types compared to others. It is important to know what you are looking for in a binary options broker.

 

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