4 Main Trading Styles for Binary Options
The binary options platform allows a trader to trade with different assets. And there are many binary options brokers that allow investors to trade using a few types of styles. However, all binary options trades rely on a few simple steps such as:
- Choose an Asset
- Predict the Future direction of the asset movement
- Choose the amount to be invested
- Choose an expiry time to close the trade
There are four main trading styles are very popular in binary options trading. In this article, we will get a deeper insight of these trading styles.
Binary options brokers provide investors with many different choices regarding online trading. Call/Put trade is the standard type of Binary Options trading style. It is also known as Up/Down Trade or high/Low trades or All-or-Nothing trades and even Fixed Return Options (FFO). FFO is a synonymous form of Binary Options Trading. This Type of trades starts from selecting an asset and determining in which direction that the asset will move. It is either up or down. When investors believe an asset will move up they select a CALL OPTION and when they believe an asset will move down they simply select PUT OPTION.
If the asset and the prediction are determined then the trader must have to determine the expiry time of the trade. The last step to execute a binary option trade is, the trader has to decide how much to invest.
One Touch Trading:
One Touch is an exclusively unique style of Binary options trading. In this trading style, the trader have to predict not only the direction but also the price that the asset reached at the time of the trade’s expiration. If a trader can predict the direction as well as the price of the underlying asset at that particular expiry time, it could be highly rewarding way to trade but very risky.
60 Second Trading:
it is fairly new and designed upon the request of Binary Options traders who wanted to trade multiple options at one time on the same asset. It has become very popular in the trading industry because the trader has the ability to make a lot of money in a short period of time.
In general, binary options platform was built especially for short time traders. 60 second trading style makes the trading process easier and faster than ever. When a trader makes a 60 second trade then the expiry time automatically pre-set to 60 seconds from the time the trade placed.
Binary Options brokers provide the ability for traders to place multiple 60 second trades at a time.
Option Builder is same as Call/Put option. But it is the advanced pro edition of Call/Put options. It meant for serious and experienced traders, in fact it is not recommended for beginners. This binary options trading style allow to take the full control of selecting their own payout ratio for each individual trade that is placed.
Out of the four, Call/Put option is the most popular binary trading style. Since Binary Options are FRO, a day trader will know before making any investment exactly what the two possible outcomes will be when the trade will reach to expiration. This gives them a strong basis for practicing risk management strategies for investing in binary options.