THE DIFFERENT TYPES OF BINARY OPTIONS

The term binary option is used in finance to describe a payment of an amount determined in advance or not a penny, hence the term binary option (only two solutions available to you at maturity) . Profitability is known in advance. Either you receive an agreed sum or you get nothing and lose the commitment and implementation. Why binary options are also known as "all or nothing" because if the order to buy or sell is the tendency to choose the maturity of the contract there is a gain, otherwise it is a waste. This option is used in the assembly of structured products, but is also sought by individual investors. There are many types of binary option offered by online brokers.

The 'One Touch'
As its name 'one touch' or 'a touch' is an option that allows the investor to determine an exact cost by which he thinks the price of the asset will rise during the life phase of the option. These contracts stipulate that the price of the asset on which the option holder must reach a predetermined value. Usually traders use supports or resistances to determine what values %u200B%u200Bto use as a reference value. The option is enabled only if the price reaches the value before the contract expires. If the market than (or equal) then this will be worth the price fixed barrier 100, and if the trade will be worth 0. This option is becoming increasingly popular in the binary option industry.

The 'High Low'
The binary option 'High Low' is a very popular option (a classic). This is the option are more "intuitive". It is to decide whether the price of the asset on which the option holder will be located above (high) or below (low) the current price when maturity will arrive. It typically offers between 70% and 90% of feedback. The binary option to 60 seconds (or 30 seconds) have the same principle, the feedback are similar.

The 'area' or 'out of area'
This option is also called option 'Boundary'. the boundary options are in the money if the asset on which the option holder remains within a predefined framework. The investor thus determines a baseline value and a high value which form the range within which the price of the asset must survive to maturity. As you can see, we use technical tools in principle to determine the boundaries of the said 'boundary'. This is to decide whether the underlying asset will close within (zone) or outside (out of area) of a specific area.

Contracts binary options are unique and have certain characteristics that make them different from other financial instruments less speculative, more choice of trade, reduced costs of trading, better gains. Among the asset classes speculated on the binary options 11binaryoptions.com market were the currencies (foreign exchange), stock indices, shares and commodities. Currencies are the most used in the market for binary options assets.
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