Binary options trading methods
The name binary options is the general name for the type of exotic options with only two predefined potential outcomes. There are different binary options trading methods that are covered in general in this article. Essentially the binary options trading methods evolve constantly and there are more methods created from time to time that adhere to the basic rule of allowing only two predefined outcomes and presenting new products or financial markets to binary options brokers.
The first most popular binary options trading method is the call / put binary option. This option requires the trader to predict whether an asset rate is higher or lower than current rate at the expiration time. For example, if we choose to trade on facebook stock binary option with an option that expires 40 minutes from now, will the rate 40 minutes from now will be higher or lower than the current facebook’s stock rate. The call / put binary options is thought to be the easiest binary option method to trade with.
The one touch binary option is a binary options trading method that requires the trader to predict if the asset rate will “touch” a specific rate before the option expires. Some brokers provide the option to choose “no touch which is to predict that the rate of the asset will not touch a certain specified rate until the option expires. The one touch binary option chances are based on the volatility level of the asset. Touch prediction is easier when the asset is very volatile and the no touch fits assets with lower volatility. Many brokers issue one touch binary options with higher payout because they are more complex to trade with.
The range binary option is less popular and not all brokers support it. This binary option trading method requires the trader to predict whether a specific asset rate expires in or out a specific predefined range. There are many factors to take into consideration when trading range binary options and they are not recommended for beginner traders.
The option builder binary option is not really a trading method by itself but more a customization tool built on top of existing binary options trading methods. The option builder lets the trader to create a new binary option based on a selected asset with a customizable expiration time. The option builder trading method fits advanced and experience traders that want to have more control over their trading.
The 60 seconds binary option is also not a binary options trading method by itself. The main attribute of this kind of binary option as you can see by its name is that the expiry time is 60 seconds. These options are usually based on the call / put option type and are offered by a growing number of brokers. We include the 60 seconds as a standalone trading method because it requires a different approach towards trading (very fast analysis and decision making) but it enables traders to generate fast profits from short trends and while on the go through the different binary options mobile applications.
The binary options brokers that offer a variety of different binary options trading methods include: iOption , NRGbinary , Cedar Finance , ZoomTrader , Banc de Binary , OneTwoTrade , 24option , and EZTrader .
Articles about binary options trading methods:
Option builder binary options (also known as options builder) are built on the call / put binary options as an advanced option customization tool. The essence of the option builder binary options is the ability to fully personalize key features in the issuing of the option. The trader can decide when the option is issued, [...]
Range binary options are very common as a trading method. The predefined condition of the range (boundary) binary option is whether or not an asset rate expires in the declared range. Just like the call / put binary option, the decision the trader needs to make here is relatively easy because the decision is between [...]
The one touch binary options (also known as lock-in and touch digital) are usually the options with the highest payout. The predefined condition of the one touch binary option is whether or not the asset’s rate will reach (“touch”) a specific rate at any time until the expiration time of the option. Many new traders [...]
The Call / Put binary options (also known as Up / Down and Above / Below options) are the dominant binary options trading method. Some 60%+ of the binary options trades performed are done using this very intuitive and simple trading method. The predefined condition for the Call / Put binary options is whether the [...]
60 seconds binary options are relatively new and were launched with the binary options mobile applications and are served on the mobile applications and the brokers’ on-line platforms. The 60 seconds binary options are based on the call / put binary options and offer a very quick way to generate profits from binary options that [...]