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A Simplified Definition of Binary Option Trading For Beginners!

Author: Binary Option Signal
by Binary Option Signal
Posted: Dec 26, 2015

Learning something new is never easy, especially if you have no idea where to start. Binary options trade is easy to trade but you need to learn the trade if you want to become a successful trader. Definition of binary options might seem like rocket science to many beginners, but once you master the concept you become an expert effortlessly. Your success depends on how much effort you put to learn successful binary options strategies. The common binary options include the following.

One Touch/No Touch

When you choose to use One Touch, you state the opinion that the price of the underlying asset will touch a particular level before the time expires. You will win the trade if the asset touches the predetermined level, regardless of which direction it takes after touching that level. On the other hand, if you state your opinion that the price will fail to reach the predetermined level before the expiry time, you will use No Touch option.

It is important to note that when you use One Touch option, you do not have to wait for the expiry of the trade. Nonetheless, when you choose to use No Touch option, you have to wait until the expiry of the trade in order to affirm that the price does not reach the per-determined level.

One Touch trading has the highest payouts when compared to the other options. It can go as high as 700% and that is why it is one of the best Binary Options Guides. Nonetheless, the chances of winning in One Touch/No Touch options are minimal hence the high payouts. In this regard, it is important to look for the right opportunities to trade here.

Up/Down Options

Up/Down options are easy and any beginner starts here. When you select Up/Down option, the price of the underlying asset when time expires should be higher or lower than the initial trade at the beginning of the trade, depending on the type of option you select. If you choose Up (Call) option, then you will win the trade if the price of the asset during the expiry time is higher than the initial price. Conversely, if you choose Down (Put) option, you will win if the price drops at the expiry of the trade.

Notably, Up/Down options work best in trending markets. Trending markets will minimize the risks and increase the chances of earning high payouts because the prices are constantly moving up and down. Nonetheless, avoid using these options in a ranging market because the risk of losing the trade is very high. It is important to learn Up/Down options because they are the basic options you can use in your successful binary options strategies. You will have a he winning potential if you know how to use them effectively, although they do not have high payout as One Touch/No touch options.

About the Author

Binary options may also be used as a vehicle to trade the volatility of the underlying market with limited exposure whereas trading the outright market in volatile conditions can be quite risky.

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Author: Binary Option Signal

Binary Option Signal

Member since: Dec 26, 2015
Published articles: 6

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