Types of binary options

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Binary options are a type of financial instrument that offer traders a simple and easy way to speculate on the price movements of various underlying assets, such as stocks, currencies, commodities, and indices. There are several different types of binary options available for traders to choose from, each with its own unique set of features and characteristics.

High/Low Options: High/Low options are the most basic and widely traded type of binary option. Traders simply need to predict whether the price of an underlying asset will be higher or lower than its current price at the expiration time of the option. If the trader's prediction is correct, they will earn a fixed payout. If their prediction is incorrect, they will lose their initial investment.

One Touch Options: One Touch options are a bit more complex than High/Low options. Traders are required to predict whether the price of an underlying asset will touch a predetermined target price at any point during the lifetime of the option. If the price does touch the target price, the trader will earn a fixed payout. If not, they will lose their initial investment.

Range Options: Range options, also known as boundary options, require traders to predict whether the price of an underlying asset will remain within a specific price range or break out of that range by the expiration time of the option. Traders can earn a fixed payout if the price remains within the predetermined range, or lose their initial investment if the price breaks out of the range.

60-Second Options: 60-Second options are a type of High/Low option that have an expiration time of just 60 seconds. These options are popular among traders who want to profit from short-term price movements in the market.

Pairs Options: Pairs options allow traders to compare the performance of two different assets and predict which one will perform better over a set period of time. Traders can earn a fixed payout if their prediction is correct, or lose their initial investment if they are incorrect.

Overall, each type of binary option has its own advantages and disadvantages, and traders should carefully consider their investment goals and risk tolerance before deciding which type of option to trade.




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