Operations in binary options

Types of operations in binary options

When you start trading with options, it is important that you know how to operate and what different types_options_binary_options of operations exist, which will allow you to adapt your strategy.

Since not all traders are the same the diversity of types of operations will help you to choose the options that you feel more comfortable operating and those that also can adapt better to your trading style and investment strategy.

In this article we will explain all this so that once you decide to enter the market you can know the types of operations that are on the platforms of binary options and choose with more criteria.

What are and how are binary options operated?

How it is to explain the types of operations I will not extend much, although we will give some quick details so that you catch up on the binary options.

Binary options are a by-product in which they are traded with underlying assets. Unlike other financial instruments in binary options, it is traded with the price trend of a selection of assets, including currency pairs, stock indices, commodities and domestic and international market values.

They are known as all or nothing options because to operate you have two options, the call option (CALL) and the put option (PUT), that is, you can bet on a rise in the price of the asset or down.

Therefore, you can win or lose depending on the decision you make. Obviously the objective is to predict the correct trend of the price and collect the benefits, which are fixed and their percentage is presented in advance.

That said, how you can check the mechanics of trading is relatively simple, you just have to perform the appropriate analysis so that your decisions are the right ones. Now, let's see what types of trades you can find on your regular broker.

What types of operations are there?

I should point out that on most platforms you will find the usual options, but there are also other types of trades that you will have to look for in certain trading platforms, as some options may not be available in your trusted broker.

The types of operations discussed below include standard binary options, touch options, range options, express operations, custom operations, pair operations, and ladder options. Take note to see which ones you may be most interested in.

Standard Binary Options

These are the classic operations, known as Above / Below or High / Low depending on the broker. In essence it is the same, operations where your objective will be to bet up or down, or what is the same, by a rise in price or a decrease.

Standard operations are the most common and you'll always find your broker. Yields vary from broker to broker, although they typically range around 80-85%.

One Touch or Touch Options

Something more complex we have touch operations, where in addition to predicting the direction of the price will have to establish if the price will touch a limit level, either up or down. The basic operation is about that, although then there are variants where you can specify whether or not it will touch a given price and yes it will do it by the resistance level or the support level.

One of the advantages of One Touch operations is that they allow to operate in markets even on weekends while markets are closed. And in terms of yields these are actually more tempting, ranging from 350% to 600%.

Range or Boundary options

It is a type of operations quite similar to the ones mentioned above One Touch, since in addition to the trend of the price of the asset it is important to be able to place its movements within a specific margin. This means that both the price of the asset and the price of the asset will fluctuate at all times within a pre-established price range.

In case the price, at some point while the operation is active, escapes from the delimited area the option will end out of the money, or what is the same, in losses. Therefore, it is very important to analyze the evolution of the quotes of the assets with which we want to negotiate, since if we have them controlled we can operate with more guarantees.

Binary Express Options

In trading with binary options we can also enjoy express operations, with much shorter maturities than usual. The most characteristic operations are 60 seconds, although we can also find options of 30 seconds. Then we also have operations that expire at 1 minute and 5 minutes.

Custom Operations

Customized or customizable operations are included in some brokers to offer their clients the possibility to optimize their investments.

Known in many places as Option Builder these operations allow to adjust parameters as useful as the level of exposure to risk and the desired percentage of performance. In this way the investor achieves a balance in its operations with options.

Peer Operations

Doubtlessly, peer-to-peer operations have become quite successful, and it is that dealing with different underlying assets is very interesting.

The mechanics in essence is the same because you will also be negotiating with the prices, but in this case you will be facing two assets and seeing which one will quote above the other.

It should be noted that to face pairs assets must belong to the same category, ie two pairs of currencies, two values, two indices ...

Ladder or ladder options

This is the most recent addition to brokers of binary options.

Ladder options have the same objective as all, correctly identify the direction of the trend and bet on it. Therefore, the asset will be selected and it will be decided whether it will rise or otherwise fall. In this strategy you will have three options for asset prices, so you can make several forecasts with your own expiration period.

On the one hand you will have an entry point to the market at the current market price and on the other, one above the current price and another below. You can also include a pair of each if you prefer. In any case, you will have to be hitting your forecasts to get the winnings.