Beginners in options trading often come across the term Binary options. Binary options trading is simple to learn but needs lots of dedication to succeed in real life. They are the simplest type of financial trading instruments in the trading market. It requires the prediction of the value or price of the assets. In Binary options returns are fixed, unlike stock market where the profit depends on the underlying asset value. The binary option trading became popular among the European people due to its simplicity and opportunity of small investors. Unlike other trading options, it requires a broker for trading binary options and deposits.
How to Start Binary Options Trading?
You need to find the trustworthy broker who you will provide you with the platform to trade Binary option. Binary options include commodities, stocks, currencies, etc. You need to buy a trade which means you are doing the call option and when you sell the trade you are making the put option. The Expiry date of the trade can from 1 minute to 30 days duration. The Expire date depends on the broker you choose and platform you use.
Types of Binary options you need to know
1. High/Low Options
In this type of option, the trader needs to predict whether the price of an asset will be higher or lower than the predetermined value of the asset. The trader needs to put the expiry date with the put option.
2. One-Touch Option
In this type of option, the trader has to determine whether the predicted value will stay within the specified value or touch it. One touch option has only two outcomes whether it reaches the barrier or does not.
3. Range options
It includes the prediction of the value within the ranges. You need to decide the range of the assets along with the expiry date. Trader finally has to predict whether the value of the asset will be a range or not.
4. Ladder options
In this option trader will be provided with the different ranges of price and trader has to place them to determine whether the value of asset will rise or fall at each level.
5. 60seconds Options
It is the fastest trading option, where trader needs to predict the price within the time bar of 1 minute, that price will stay below or above the strike price.