If you are relatively new to the binary options industry, then you probably do not have too many information about the variety of binary options you have at your disposal. That is exactly why we’ve written this material – to make you familiar with some of the basic types of binary options you could use.
Option #1 One touch
The “One touch” binary option is basically an order that becomes profitable when the market reaches a certain level after the order had been placed. That level is also known as “trigger” in the trading jargon.
It is a very effective option, especially when the market is moving impulsively in a certain direction. It also carries a high level of risks, since the market needs to reach your trigger in order for you to make money. A well-established money management system is a must in this situation. Since there is a high level of risk, the payouts are also big, with some brokers reaching more than 300%.
If the trigger is very close to the current price, then the payout will be smaller. In the opposite scenario, it will be higher.
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Option #2 No touch
This is a type of binary option that works in opposition to the one touch option. You basically are setting a level that won’t be reached by the market in a pre-determined period of time. This time, if the trigger is close to the current price, the payout will be high, and small in the opposite scenario. You have to consider very carefully the trading time ideal for binary options.
Large swings can hit your trigger and thus you will lose money.
Option #3 Double no touch
In this case, there are actually two triggers and the market needs to fluctuate between them, without touching them. If the market will reach only one of those, you will be “out-of-money” and your capital at risk will be lost.
This is an effective binary option, especially in times when the markets are ranging or consolidating. If volatility is high, this is not the right binary option you should consider.
To conclude, these three are just some of the binary options you have at your disposal. In a future article we will discuss other ones as well, but in the meantime try to test the ones above.