Login >>Register >>Recent >>Popular >>Categories >>RSS >>AboutUs >>Privacy >>SEOScore >>Guidelines >>Terms >>FormatSoftware >> Cookies

  




 
Home Page >>Investments >> View Article

  View article as RSS      Short Url      RSS Short Url      SEO Score: 76
 

Types Of Binary Options Available In The Market

By: Roman M. Sadowski
Types of binary options

There are several binary options offered by brokers in the industry. All of them are different and based on different principles. Some will prove to be efficient investment and others will not be worth your attention.
Let's look at few most popular types of binary options.

End of session putcall
This is my favourite one. This is typically an intraday option that the price of the underlying will be higher or lower than it is now at the close of the current session. It usually must be placed fairly early in the session but it is also good to trade after the European session is over and NY session opens.
A reasonable commission is typically added to the current price in the form of a spread. Trader opening price is slightly in loss.

Shorter intraday callput
An intraday binary option that the price of underlying asset will be above or below the opening price at some point (chosen by a trader) during the current trading session.
Many binary brokers offer anything from seconds to one hour expiry. These options seems to be the most popular but, in my opinion carry the most of the risk.
Some binary options brokers allow to customize to a wide variety. The problem with these is, of course, finding decent bet pricing. The shorter time frames are designed for gambler rather than traders. They are priced accordingly to sucker bet. In addition some of them include a small spread to shelter the broker even more. Normal payout on these options varies around 70%, which is low and dangerous. The binary trader must show a high accuracy system to generate return. Personally, I don't know how I can be done.

Range
You are betting that the price of the underlying asset will be between two specified prices in the point in the future. This method can prove viable in the ranging market with low volatility. In the currency market, the best example of it would be EURCHF. This pair has traded in the very low range for years now. This is due to the fact that the Swiss central bankpegged Frank to the euro to avoid further increase in the price. Every time EURCHF rises above 1.22, central bank would step in and sell the currency on the open market in order to depress its price.

One touch
A binary option that trader would use to bet than the underlying asset will touch the specified price in up to the specified expiry date. The options will be in money if the price level is touch before or on the expiry date. Once the price is touched once, binary option contract is closed and the trader cashes in. This is very interesting method of playing binary options. Expiration dates tend to be longer than intraday. Techniques performs well in high volatility environment and offers attractive payouts.

No touch
Binary option contract taken by trader who thinks that the price will not touch specified level at the expiry. This option cannot be exercised prior to the expiry. Trader must wait until the option expiry to close the contract and collect winnings. These options also offer attractive payouts. They depend on the price action, volatility and the distance between the current price and the specified price. As longer the price away from the current level, as higher the payout and probability of hitting. No touch binary options obviously carry substantial amount of risk with them.

UpDown
This is just another binary option contract used in ranging markets. Trader get paid id the price touched either of the specified barriers. They are set above and below the current price level. These options can be used in the ranging markets with low volatility. These options seem to be less attractive than the rest of options mentioned above. They don't offer attractive payout to consider them in your portfolio.

These are most binary options available to the trader in the industry. All of them fit into different trading styles and markets offer an opportunity to generate an income.

Tags : Types ,Binary ,Options ,Available ,Market ,price ,options ,binary ,option ,touch ,trader ,current ,session ,specified
Total Views : 26    Word Count Appx. : 680
Article Number : 213805
See All From Author Roman M. Sadowski
     
     
     
     



© 2017 Myartsubmit.com . All Rights Reserved.
  Time taken = 0.03 seconds
Cookies

Last Updated September 15, 2014

Cookie Policy
Like most companies, myartsubmit uses cookies and similar technologies (“cookies”) on our websites to facilitate and improve your online experience.

How we use cookies
Cookies contain small amounts of information which are downloaded to your device when you visit our website. Cookies are sent back to our website to allow us to recognize your device.

Recognizing your device with Essential Cookies allows our site to help you navigate efficiently to obtain the information and services you have requested.

Analytical and Customization Cookies allow our site to remember your preferences such as language selection and help you to view information that is most relevant to your interests; these cookies also help us to maintain and improve our websites by providing information on how visitors find and use the sites, and how well the sites are performing.

In some cases Advertising Cookies may be used to make advertising messages more relevant to you.

Unless you disable the cookies on our website, by using our website you agree to our use of those cookies.

Making cookie choices
You may see the list of myartsubmit and selected partner cookies on our website and make choices about those cookies by visiting our Cookie Consent Tool here. In addition to our Cookie Consent Tool, most browsers allow you to manage cookie preferences. If you decide to disable cookies on our site, you may not be able to take full advantage of all website features once you have done so,

Sharing tools
To enhance your experience on our websites, we sometimes embed content and sharing tools from other (third party) sites, such as “like” buttons from social networking sites; these third party sites may also place and access cookies on your device. Myartsubmit does not control the placement or access of these third party cookies. You should check the relevant third party website(s) for more information about these cookies and whether and how you may make choices about them.