Types of Binary Options Trading

Binary options have evolved from having just one type to taking on several forms. Since it has witnessed a surge in public interest, several types of binary options have become available. Most of them can be confusing for a new trader who is seeking binary options trading tips, so here is a brief explanation on the types of binary options trading:

1. High/Low Options: this is the most basic type of binary options. In this type, the expiry price of an asset should be higher or lower than its opening price. If an investor selects high and the price at expiry is even one pip higher than the opening price, he/she wins the entire pay-out, but if the expiry price is lower than the opening price, an investor choosing a low option will win. This is best used in a trending market.
2. One Touch/No Touch Options: for one touch options, the expiry price is expected to be within a certain range before expiration and it can either maintain that range or go higher. The reverse applies for a no touch option; an investor will win the pay-out if the expiry price does not reach the predetermined range. This type of option is best used when you are not sure about the price level.
3. Boundary Options: an investor will choose whether the closing price will be within a predetermined range when the option expires. This type of option is also known as In/Out; when an investor is “In”, he/she requires the expiry price to be within the set range, but when he/she is “Out”, the expiry price is expected to be outside the boundary.
4. 60 Seconds Options: these options are exactly like High/Low options, but they expire in 60 seconds. The same principle that applies to High/Low options applies here, only there is a 60-second expiry time involved. This type is suitable for investors that do not like the hassle associated with a long expiration period and those that need to constantly feel the excitement of being in the market.
5. Pair Options: here the price of an asset is expected to be higher or lower than that of another asset it is paired with when options expire. An investor interested in pair options will pit one asset against another and decide which one will perform better before the expiration time. The direction of the investment does not matter here, all that matters is how the asset selected performs in contrast with the asset it is paired with.
6. Ladder Options: this is considered to a complex type of options, it was introduced not too long ago and is also similar to the High/Low options. Here, an asset has several price levels that are further away from the initial one, an investment choosing this type of option can select a price that is farther from the current price and, the farther he/she goes, the more he/she has to win, but also the lower the chances of hitting the desired price.

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