The most demandable types of binary options at the markets

Each broker of binary options offers a wide range of types of options. As a trader, you should always understand what every option means and know what types of binary options are available. Wanting to win the competition of other brokers, everyone is trying to sell as many options as possible using different names, but in fact they are one and the same. In addition, some brokers believe that they must translate the name of options, which further confuses the traders. This article lists all of the major types of options that can be traded at different brokers.

Classic binary options: buy / sell (call / put) and “above / below» (high / low)

These types of options is the world standard, and in fact the main binary options trading. Here you have to determine whether the asset’s price will be above or below at a certain point in the future. For example, you can buy an option for 60 minutes that the oil price will not exceed $ 100. In addition, you can sell the option and make a profit if the price of oil stays below $ 100. It’s simple enough. Payouts depend on the broker and could be, for example, 80%, and if the option is not executed – the payment is 10%. This means that for $ 100 option you can get $ 180 if you are right, or just $ 10 if the option is not executed.

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Although worldwide there are uniform standards, such brokers as Call and Put broker, Anyoption, etc., may call these options differently. Some call them the Call and Put option, someone High / Low, but there are those who call them “up / down» (up / down).

Options with the touch of a price: “One-Touch»

Conditions for this type of option are much more manageable. 99% of brokers call them One Touch options and they are not more complicated than the classic option High / Low. Here you do not need to determine whether the price is below or above. Instead, you have to determine whether the price touches a certain value at the time of expiration.

If the price is higher than the current rate, it is an option to buy (Call option), if it is below, it is an option to sell (Put option). If you purchase an option to buy, you win when the price touches a given mark. If you sell an option to buy, then you can make a profit only if the price touches a given mark. If you buy an option to sell, you win if the price touches the bottom mark, and lose if it touches it. In the caset of a sale, everything is just the opposite.

It is important to note that the option “One-Touch” can be traded only on weekends. At the weekend the “mark to touch” is determined for the next week. Thus, you cannot buy the Touch option on Wednesday that will touch a certain point during 60 minutes or not.

Options “One-Touch” are becoming more and more popular. They are in demand in volatile markets, especially when there is a probability of large fluctuations. Thus, the price of the underlying asset can touch a certain point.

Dividends in the options

Some brokers also offer options that can be redeemed. This condition is possible with executed and non-executed options, but in this respect there are significant differences between the brokers. Some brokers allow you to sell back only those options that are executed and bring 60% of the profits. Compared with the original 70% to expiration, it is certainly less, but you should also take into account that you get rid of the risk. In the end, you can take the money immediately and do not wait until the end of the option.

Some brokers allow the traders to sell back option which is not executed. Of course, you do not get all the money back, but in comparison with little compensation in the case of loss (if it exists at all), the amount you receive in this way is acceptable. These options are offered by a few brokers.

Trade with boundaries: the boundary options

In boundary options you bet whether the price to be within the two boundaries and, of course, hope that there won’t be volatility and unnecessary movements. Thus, volatile markets can delight traders of boundary options!

Some brokers give traders the opportunity to create their own options. It is an innovative approach that can be very profitable for all the traders. At least if you know how to create your own options. You can take into account several features, such as the expiration date, the underlying asset and the payments and at the same time to calculate risk factors. Thus, you can have full control over the trade of binary options!

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