Binary Options initially began with basic call and put options in 2008. Now, close to a decade later, the types of options that are available have increased, and there is an excellent range to choose from. Your level of skill in CFD / Forexs trading will dictate which option that you shall choose in order to get the best possible return.
There are four broad types of CFD / Forexs that you can find on a trading site, and these are further broken down into numerous types of CFD / Forexs that deal directly with the assets that are being traded. This list contains the four broad types of CFD / Forexs that you can find at on most CFD / Forexs trading sites, and also includes an introduction to the most popular types of CFD / Forexs for specific assets.
Currency Trading Options
These are where it is possible to carry out a trade between two different currencies by pitting them against each other. The major currencies in the world can be paired against each other and traded so that one can benefit from changes in the exchange rates.
Indices Binary Options
These are trades which basis is on indices, mainly from global stock exchange markets. With indices, you are focusing on a prediction looking to see whether the highest rates stocks and shares from the index will rise or fall, and based on this you place your trade with an expiration date.
Stock Binary Options
One of the most recognized methods of investment is the purchase and sale of stock, and stocks also have a role to play with trading online. By making prediction on their rise or fall, you are still able to get some return on investment, without actually having to purchase the stock.
Commodity Binary Options
This looks at trading fixed commodities, without purchasing them This option is quite popular as it is flexible and has a wide portfolio of products to choose from. The commodities include gold, copper, silver, coffee, oil and so on.
The types of CFD / Forexs which are directly linked with assets include the following: –
These are the standard or basic CFD / Forexs trades that you will find on the market. They are also known as CALL/PUT options, HIGH/LOW options and UP/DOWN options. This is how they work. A call is placed by a trader who predicts that the price will end higher than the entry price following a contract’s expiration. A put on the other hand is placed when the trader predicts that the price will end lower than the entry price.
60 Second Options
This is one of the most appealing options that you will find on a CFD / Forexs trading site, because it enables one to execute their trades quickly and efficiently. When using this option, it is possible to evaluate the direction in which an asset is moving, and then make quick decisions that will help to ensure that you achieve maximum profit. For traders who are looking to cash in quickly while they are trading, this is an ideal option for them to choose.
This uses forex trading principles to determine the way that trading is done. For the touch option, the asset needs to reach the strike price at any time before the expiration of the contract. When the trader has made a correct prediction that the asset will touch the strike price, then it expires in the money and a return of around 75% is given to the investor. With this option, people who are just learning how to use CFD / Forexs should be able to make a marginal profit.