Types of Trade Options Used in the Binary Options Trade!
Binary options trade is a simple and yet somehow complex trade. The rules are simple because it is prediction of value of an asset. However, there is more to the trade other than a simple Yes or No. If it were that simple, it would just be another version of gambling. Therefore, you must have adequate reasons to pick your option. It requires extensive research and understanding of the price movements.
Binary options trade has three main types of options that you can use, it all depends on your preference.
Learn about the types of trade options used in the binary options trade:
Put and Call Option
It is the most popular type of trade in binary options. Essentially, when you trade with the Put/Call option, you simply predict whether the price of the principle asset moves up or down at the expiration of the trading period.
The outcome of the trade depends on whether you made a correct prediction or not.
On one hand, if you predict that the price of a principle asset is going to be lower at the end of the trading period, and it indeed ends up being lower than when it started, then that is a Put Option. Consequently, you will have a winning trade and you will profit from that individual trade.
On the other hand, if you predict that at the end of the trading session the principle asset will end up at a higher price than at the beginning of the trade, then it is Call Option. Therefore, if you make a correct prediction, and the principle asset ends up with a higher price than the original price, you have a winning trade and you profit from that particular trade.
One Touch Trade Option
When trading with the One Touch Trade, you receive a target price and the commencement of the trade. If the principle asset reaches that particular price, or goes beyond the price at any given time during the life of trade, you will have a winning trade. Essentially, the broker is responsible for setting the target price before you start trading. Therefore, you can prepare your information beforehand.
It is worth noting that there is a difference between One Touch options and other types of trade options. In this case, the trading period expires the moment the principal asset reaches the pre-determined price. Therefore, it you predict that the principle asset can reach a particular price during the life of a trade, you only need to see the asset reach that level and you have a winning trade.
Read more about Binary Options Trading Strategies
With Boundary trade, the broker offers you a range of prices. It is entirely up to you to determine whether the price of the principle asset will be within or without this given range. Boundary Trade has different variations and versions that are complex have very high payouts although they are not easy to win.