4 Popular Trading Styles for Binary Options
Binary Option Brokers offer platforms that enable traders to trade Binary Options using several types of trading styles. All types of trades rely on the investor to:
- Select an asset
- Make a decision on future direction of the asset’s price movement
- Put the amount to be invested in this option
- And select the expiry time for the option to close.
- Call/Put Trading
Binary Option Brokers offer investors with a few different choices regarding online trading. The average style of Binary Option trade is ‘Call/Put’ Trade. This type of trade is also known as High/Low Trades, Up/Down Trades, Fixed Returned Options, and even All-or-Nothing Trades.
This type of trade requires an investor to choose an asset and then determining in which direction the price of that asset will move, either up or down.
- If investors believe the value of the asset will increase they select a Call Option
- If investors believe the value of the asset will decrease they select a Put Option
When the asset and the future direction are determined the investors must then decide expiration time of their trades at which time the option will expire. The final step to executing a trade in binary options is for the traders to determine how much to invest.
If trader’s predictions go right, then traders land ‘In the Money’ and will be given the predetermined profits for their investment.
- One Touch Trading
One Touch trading offers the highest returns on investment of any style of Binary Option trading. It is very difficult and risky as well and not recommended for novice traders. Results supposed to be 500% – 800% return on investment, which is rare in financial markets!
One Touch is an exceptional feature and exclusively to Binary Options trading. One Touch trading requires the traders to predict not only the future direction, but also the certain price level the asset will reach at the time of expiration. An additional feature of the One Touch is that it allows investors to buy options on the weekend, making it the only style of weekend trading in the financial markets.
- 60 Second Trading
60 Second Trading is pretty new and was built upon the request of many traders who wanted to execute multiple trades at the same time on the same asset. It achieved popularity quickly in the financial sector because investors have the opportunity to generate plenty of profits in a short time period, as they can ride waves executing several trades on the same asset at the same time.
Brokers give the ability for investors to execute multiple 60 Second Trades at the same time. Day traders who have the ability identifying market trends can grab the opportunity to ‘ride the trend’ and capitalize while assets are moving.
- Option Builder
Option Builder is similar to Call/Put Trading but it is the sophisticated pro-edition. It’s intended for serious and professional traders and not suggested for beginners. Option Builder provides traders the control of choosing their own pay-out ratios for each individual option that is executed.
Among these four types of trading, Call/Put Trading is by far the most popular binary option trading style. Option Builder and 60 Second Trading are basically Call/Put Options with their own exceptional twists. One Touch Trading is a totally different style, one all to itself.