When it comes to its basic meaning, binary options is a type of trading where profit could be determined with just two options. In general it is an all or nothing scheme that would give investors the chance to gain a profit that exceeds your investment for more than 100%. Moreover, this profit could only be achieved once the trader wins the bet, otherwise, he get nothing at all. Since the trading can only be decide through two choice, you could say that binary option investment solely relies on the person’s luck – include the fact that the trading has an average winning and losing ratio of 50 -50. However, binary options could actually be played in different ways as it is categorized in various types.
High or Low Binary Option
This type of binary option is the most common and typical among the rest. Sometimes high or low signifies the binary option itself as its system mechanism basically describes what a binary trading is. So as we all know, high-or-low binary option is done by guessing the amount of an asset before the expiration time, in reference with its strike price. If you think that the value would rise before the due time, then you should buy the option “call”. If you think the value would fall under the strike price, then you should choose “put”. If things has gone your way and won the bet, you the amount $100 is all yours, and if otherwise, you will lose all your bets.
One Touch Binary Option
One touch binary option Centument is a bit different with high-or-low when it comes to the method of playing it. In one touch, traders would speculate if a price reaches a specified target on or before the expiry time. The prize in this trading could also vary depending on the distance of the current price to the specified target. If the current price is closer to the target, then the payout would be lower since the risk is lower. And if the current price is quite further from the target, then the payout would be higher. Whatever you choose in this type of binary option, the rule “winner takes all” is still followed if you won the bet.
Range Binary Option
In range or boundary binary option, things are determined according to the two set limits – termed as higher limit and lower limit – wherein traders would aim for the current price to stay at the chosen limits until the expiry date without touching other trigger points. If the prices would cooperate with the traders wish and stay within the selected limit within the due time, then the trader would win, but if it goes out and touches other trigger points, then the investor would lose.
Binary option has varieties of other trading types in the industry nowadays. Each has its different perks and entertainment which makes it unique from each other. This however may be a good thing for everyone to try to linger on this trading industry while trying out every type that would suit their interests.Read More