Binary options trading is becoming popular these days because of its high return on investment. If you are new to the market, you may not be aware of the different types of binary options that are available and can get confused. Well, you need to select the method that suits your trading needs best. Traders who are experienced, tend to choose methods depending on the current market conditions. Below are described some of the common types of binary options. (Information credit: http://www.binaryoptionstrategy.eu/)
1. Digital option
The most common type of option is the digital option, which is also known as the call/put option or the up/down option. If you think that, after the expiration of the contract, the price will end above the entry price, then you have to place a call. On the contrary, if you think that the price will end below the entry price, then you have to place a put.
2. Touch option
This type of binary options trading has a number of varieties such as double touch and no touch. When the trading markets are closed during the weekend, options can be purchased. During the week, it can be traded.
3. 60 second option
This method of trading binary options is becoming a huge hit, as this method expires in 60 seconds. In this method, if you see that the value of an asset is clearly moving in a certain direction, then you can take full advantage of it. All you have to do is conduct a number of successive trades in order to maximise the profits.
Now that you know about all these methods, choose the method that you think will be best for you. Happy trading!
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