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Types of Binary Options
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People often overlook the different types of Binary Options due to the popularity of the above/below options. In fact there are several types of Binary Options. Binary Options defined as – “Using or denoting a system of numerical notation that has 2 rather than 10 as a base.” Indicates there are only two possible outcomes... Read more
People often overlook the different types of Binary Options due to the popularity of the above/below options. In fact there are several types of Binary Options. Binary Options defined as – “Using or denoting a system of numerical notation that has 2 rather than 10 as a base.” Indicates there are only two possible outcomes when trading above/below options i.e. you either win or loose. Winning or loosing will depend solely on how accurately one can predict whether a particular asset will increase or decrease by the closing time of the option. This means ending above (win) or bellow (loss). A call option means the trader is confident that the option will end above the current price. Alternatively if the trader believes the option will go below the current price he will take a Put option. If the option ends in the money i.e. the trader chose the right direction, he receives a very high return of between 70% – 90% of his initial investment. Please take not of certain differences between the traditional options and above/below options. When trading traditional options your value of your investment increases as you go more and more in the money. With Binary options, it is irrelevant how deep in the money one is as the assets exact price does not change the payout i.e. one only needs to predict the direction. You cant sell or exercise your Binary option as you would in the traditional sense. Where owners of traditional options can take delivery of assets Binary option traders never actually buy the option. They are purely buying an option on the direction the asset will move. The three major types of binary options are  – above/below; range and touch. By understanding each type traders become more flexible and can achieve so much more.

Types of Binary Options

People often overlook the different types of Binary Options due to the popularity of the above/below options. In fact there are several types of Binary Options. Binary Options defined as – “Using or denoting a system of numerical notation that has 2 rather than 10 as a base.” Indicates there are only two possible outcomes when trading above/below options i.e. you either win or loose.

Winning or loosing will depend solely on how accurately one can predict whether a particular asset will increase or decrease by the closing time of the option. This means ending above (win) or bellow (loss). A call option means the trader is confident that the option will end above the current price. Alternatively if the trader believes the option will go below the current price he will take a Put option. If the option ends in the money i.e. the trader chose the right direction, he receives a very high return of between 70% – 90% of his initial investment.

Please take not of certain differences between the traditional options and above/below options. When trading traditional options your value of your investment increases as you go more and more in the money. With Binary options, it is irrelevant how deep in the money one is as the assets exact price does not change the payout i.e. one only needs to predict the direction. You cant sell or exercise your Binary option as you would in the traditional sense. Where owners of traditional options can take delivery of assets Binary option traders never actually buy the option. They are purely buying an option on the direction the asset will move.

The three major types of binary options are  – above/below; range and touch. By understanding each type traders become more flexible and can achieve so much more.

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Your capital might be at risk
Your capital might be at risk