Binary option trading consists of various options, designed to help the traders by applying different trading tools. By using such trading tools, the investor can easily counter the fluctuating market situations by adopting any of the options. There are five forms of binary trading:
Double no touch:
Double one touch:
No-Touch Binary Options Trading:
The no touch binary option is also termed as lock-out options. The profit in this form of trading can be received by the trader at the time of expiry of trade. The no-touch option is not at all difficult and is quite easy to understand and use. In no-touch option, the trader has to anticipate the price of the underlying asset such as currency, stocks, commodity or any other derivatives. In case, if the price of the underlying asset strikes the predetermined price that was suggested before the onset of the contract as the closing price then the trader will get nothing in the form of profit and loose all his initial investment as well.
Thus, there is a great risk involved in this type of binary options trading. As in this form, the trader has to anticipate the future of the market in the form that nothing will happen unlike the traditional form in which trader predicts that some movement will occur in the market. If the risks are determined and time of trading is long then there are great chances of high earnings. So, if the trader anticipates that the price of the underlying asset will not arrive at a particular level during the one hour time rather than a week’s time, the payout will be lesser in shorter period of time.
One-Touch Binary Options Trading:
One-touch binary options trading are also termed as lock-in or touch-digital binary trading. It is quite opposite to that of no-touch options. In this form of trading, the investor has to predict the price of the underlying asset at a particular time period and that the price will reach the predicted amount in the given time. In case, the price does not reach to the predicted amount at the agreed time the entire investment will be lost. However, if the price of the underlying asset touches the predetermined amount in the given time, the trader is entitled for the huge returns on the investment.