It’s hard to talk about binary options in general because there is a big difference between binary options trading in the USA and the rest of the world. To understand the difference, you need to understand basic principles of the binary options trading. The primary form of trading binary options is the call/put options. American binary options brokers offer only this kind of trading. It is a simple high and low trading, and it involves two aspects, expiry time and the selected option.
For example, if a trader chooses gold as the underlying asset they may check the price of the gold. At that point, they may pick a call option and decide on the expiry date. If the price of the gold stays higher than the price listed in the option at the moment of the expiry date, then the trader earns money. If the price doesn’t reach that amount, the trader loses their investment.
Brokers outside of the USA offer a wider range of options for trading. As the interest in the binary options goes up, the number of different trading options goes up as well. Most common options these traders provide, except the call/put, are:
– One touch option. In this type of trading, the trader can choose one out of the two prices that are set above and below the current price of the asset. If the price of the said asset touches the price chosen by the trader they win the trade. The price doesn’t have to stay above the selected point, only touch it once before the expiry date.
– Range option allows the player to choose one of the fields in which they believe the price will stay. If the price stays within that range until the expiry date, then the trade is won. If the price goes out of that range, even for a split second, the trade results in a loss. This type of binary options is excellent for people who know how to recognize assets that are not sold on the other markers, as their price stays stationary for a long time.
Content goes here – The primary zero to 100 dollars trading style remains in the background of every trade. New options offer different fixed payouts that are stretching this basic concept. Some brokers offer payouts that go up to 500 percent of the investment. The higher the percentage of the payout the chance for a successful trade goes down. Winning a 500 percent payout deal is very hard, and due to that people tend to avoid those deals.
– An ongoing trend in binary options world is the option to exit the trade before the expiry date. If a trader chooses to leave the trade, they get a part of their investment back. This is a good option only if the chance of the success goes down dramatically. This is just a short overview of the options in this trading world. Qbits MegaProfit if you want more info about these options.