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Different Types of Binary Options Trading



Binary options trading is a type of option wherein traders bid on whether a certain asset will go up or down in a certain amount of time. If the trader correctly calls the movement of the asset, he or she will be awarded a fixed amount of return. Otherwise, he or she receives nothing at all. This is the reason why it is called binary options trading, as there are only two possible outcomes in this situation. Binary options trading is also known as all-or-nothing options, digital options, and Fixed Return Options (FROs).

In traditional trading, you have the option to get the services of a broker who would act as an intermediary between you, the trader, and your market. The same goes for binary options trading. The only difference is that everything is done online or by installing software. One prime example of such is BinaryMate.¬†Is BinaryMate good?¬†Well, there are plenty of reviews regarding the site online. The reviews outline the pros and cons of the product. Nevertheless, what’s good about the platform is it boasts of many tools that can help you be successful in binary options trading. It likewise guarantees the best maximum return rates.

While the platform is barely new, it has features that have been proven to contribute much success to brokers. For instance, traders who use it have the option to trade manually or automatically. Traders can also access the software from any device, and it boasts of high-security standards. Hence, BinaryMate is worth checking out especially if you’re new to binary options trading.

Binary options trading makes use of different models in various trading platforms and markets. One of them is called the “cash-or-nothing binary options trading”. This is perhaps the most popular form of binary options trading wherein the investor buys a contract for either a Call or a Put. A correct bid will earn a fixed return, usually between 170% and 200% of the stake. If the investor made a wrong bid, the investor loses their stake, but sometimes, 10% to 15% is given back.

Another type of binary options trading is called the “assets or nothing binary options”. This type of binary options trading is very similar to the cash or nothing binary options. However, the return is not determined by the stake but rather by the value of the underlying asset itself.

Meanwhile, there is also what is called the one-touch binary options trading in which the contract will end once a predetermined value is “touched” by asset prices; thus, the term “one-touch”. The investor needs to call whether the asset price will reach that value during the duration of the contract. The opposite of this type of binary options trading is the “no-touch binary option”.

Finally, there are the double-one-touch and double-no-touch binary options trading. These types of binary options trading follow the same concept of the one-touch and no-touch binary options trading. However the double-one-touch and double-no-touch binary trading makes use of two values instead of one.

These are the main binary options trading models that are used today. While many people consider this type of option as a gamble, this types of investments actually allow you to calculate the risks involved, allowing you to make an informed decision.