Types of Binary Options
Binary options trading is a type of financial trading that offers various types of options for traders to choose from. Each type of option has its unique characteristics, payout structure, and risk level. In this article, we will discuss the different types of binary options.
High/Low Options: High/Low options are the most popular type of binary options. With this type of option, traders need to predict whether the price of an underlying asset will be higher or lower than the current price at the expiration time. If the trader's prediction is correct, they receive a fixed payout. If the prediction is wrong, they lose the investment.
One Touch Options: One Touch options are a type of binary option where traders need to predict whether the price of an underlying asset will touch a specific price level or not. The price level is set by the broker, and the trader needs to predict if the price will touch that level at least once during the expiration time. If the price touches the level, the trader receives a fixed payout. If it does not touch the level, they lose the investment.
Range Options: Range options are also known as boundary options. With this type of option, traders need to predict whether the price of an underlying asset will remain within a specific price range or move outside of it at the expiration time. If the price stays within the range, the trader receives a fixed payout. If it moves outside of the range, they lose the investment.
60 Second Options: 60 Second options are a type of high/low option where the expiration time is just 60 seconds. Traders need to predict whether the price of an underlying asset will be higher or lower than the current price after 60 seconds. If the prediction is correct, they receive a fixed payout. If it is wrong, they lose the investment.
Pair Options: Pair options are a type of binary option where traders need to predict which asset will perform better than the other during a specific time frame. For example, if the trader chooses Apple and Google, they need to predict which stock will perform better during a specific time. The payout is fixed, and the trader receives a fixed amount if their prediction is correct.
In conclusion, binary options offer a wide range of trading options for traders. Understanding the different types of options is crucial for making informed trading decisions. Traders need to choose a type of option that suits their trading style and risk appetite.
