Tuesday, August 11, 2015

The Main Trading Options Available in Binary Trade Options


There are basically seven types of trading options or "call or put" options to choose from once you have selected a broker or platform to do your binary options trading. The following is a list of the most common put and call options with an explanation for each one.


  •  binary option (currency)
  • pair 
  • long term
  • 60 seconds 
  • one touch 
  • ladder
  •  follow 


When a trader start contract or open a position he simply picks one of these call or put options, select his investment amount and select whether this trade will be a "call", predicting the price will go up or a "put", predicting the price will go down when the trade reach its expiry date.

Binary option or currency

Currency or binary option as I mentioned in another post is the most popular option for binary options trading. Uki just choose a currency pair to watch and determine whether it will go up or down from its strike price or stating price when the chosen timeframe ends. If your prediction is correct sand you invested $25, a potential payout of 81% of your investment will be paid to you, a payout amount of $45.25. A profit of $20.25.

Pair

Pair is a binary option where two assets are paired together such as Apple versus Google or Gold versus Silver. The goal here is to predict which asset in the pair will do better in the specified timeframe. In this case, the timeframe generally ends at the end of the day.

Long term

Long term options are simply call or put options that have longer expiry dates, usually one week, a month, several months or a year.

60 seconds

The 60 second option is the least popular in binary options trading. If you are not careful here you could lose all your money very quickly. This basically gambling when you use this option. However you can improve your odds of winning if you execute this option on a rapidly increasing or decreasing price trend when they occur. You can make a quick profit in a short period of time if you know what you are doing. You  van also do 30-second, 2-minute, 3-minute and 5-minute expiry date under this option.

One-touch 

The one-touch option is a longer term option. The idea here is to predict if the price of the asset will touch a predefined price in a specified timeframe. The predefined price can be higher or lower than the starting price. If your prediction is correction you can earn a potential payout of up 500% of your invested amount. You $25 investment can become a $125 payout, a profit of $100.

The Ladder

The ladder option as the name implies is an option where you have  five price levels to choose from. With this option you have to predict how fair up or down the price of the currency will go. The price is predefined to go up or down/ Each level has a different potential payout amount and during trading the potential amount are constantly changing depending on what the market is doing. Potential payout can go as high as 600% of your invested amount.

Follow

The follow option is a good option for beginners, especially if they still are nervous about binary options trading. The trader simply make a selection of which of the top 10  traders in the platform to follow. You simply follow his actions and it is done automatically by the platform. You just set your investment amount and how long you wish to follow him. It can be a day, week, a month or a year. These guys are usually right close to 80% of the time. You will make a profit here by being patient and consistent with your decisions.

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