Although the main principle of binary options trading is fairly simple, brokers and software providers often come up with different variations to attract more traders. Don’t worry, these binary options types are almost just as easy to understand as the basic type, even if you’re a complete beginner. To prove that, we will show you the most common types of binary options you can find, which are also known as trading modes. You might be surprised with how many possibilities the industry has come up with over the years, so stick around and maybe you’ll find your new favorite. Let’s get started, shall we?
Binary Options Types | Basic types
We’re not going to go into the standard Call and Put Options here because we have a separate article just for that, and instead we will dive head-first into all other binary options types. Something you’ll see almost everywhere is the so-called ladder trading. Here, price levels are stacked above each other like rungs of a ladder and you have to guess how high the actual price will go. The more “rungs” you guess right, the bigger the payout. Apart from this, pairs are also a popular type of binary options. Like the name says, here you will be dealing with pairs of assets which are always fixed but correlate with each other and come from the same industry. This is a good way to make a hefty profit if you’re an expert in one particular field. But there are more things to discuss, so stay with us.
Binary Options Types | Go social?
Don’t forget that, no matter which trading mode you choose, you need to have a sound and well-defined Binary Options Strategy if you want to profit. The only instance where that may not be necessary is social trading because there you can follow other traders and simply copy their decisions. Another of the binary options types is the so-called one-touch mode, where you have to guess whether or not an asset’s price will at some point touch a designated level. Here you’re not interested in the situation at the expiry time because the price can touch the level at any point in time between you opening the trade and the trade’s closure. Of course, there are also types of binary options offering trading in extremely short or extremely long timeframes, but we think those really don’t require any further explanations.
Binary Options Types | Conclusion
As you can see, there are many binary options types to choose from, so examine your broker’s platform thoroughly to find what suits you best. No matter which one you choose, you will grasp the concept quickly because everything always boils down to whether a price goes up or down. However, if you need help in creating a suitable trading strategy, don’t forget to check out our other educational articles. You will surely find what you need there.