The types of binary options
There are mainly three types of binary option, which can be used to make trading operations:
- the binary option High / Low
- the binary option or No Touch
- the range binary option
All these types base their structure on a price of "base", which is below the value of the purchased option (it may be a stock index, a commodity, a stock or currency pair Forex) when you purchase the option.
Defined that price - which depends, in fact, from the moment you buy the option) - depending on the type of binary option must make a prediction with regard to developments in that price during the period from purchase its end (always the option):
- in the case of option binary High / Low, it must be said if the asset price will rise or fall: if you go up, you buy a call option Binary Up / Down, and if descend, a put option Binary Up / Down.
- in the case of option binary Tap or No, we must say if the asset price touches or not a given (at time of this element is defined, is connected to the option you buy) price target: if so, you buy a call option binary Tap or No if not, a binary option put No. Tap or
- in the case of option binary interval, the target price (defined as above) to be considered are 2: they are a price range within which we must say if the asset price will fluctuate: if so (ie if it is believed that the price will never go out of that range) will buy a call option binary Interval, otherwise, binary put option range.