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Trade Binary Options

For a very long time, binary trading was done through specialized brokers who charged a fee for their services. However, over time, as the popularity of trade binary options increased, online trading platforms were developed which allowed most of the traders to make transactions and place order on their own. This did not only bring in many new investors into the market, but it also made binary trading popular amongst the masses.

The best thing about trade binary options is that the returns are pretty high and quick; you do not have to wait for months to see if you earned a return. On average, the binary options expire within 24 to 48 hours; so all you need to do is to place a bet on the assets you want to trade in and wait until the option expires. The bets that are placed on the prices of the assets are not random; instead, proper calculations are made based on mathematical formulas about the volatility of the market and the binary options signals provided by trading brokers. Along with this, the average return is calculated and the interest rate changes are determined over a given period and then the prediction about a stock is made.

Binary options are called so because you either end up with a full return or you lose all your investment. As a new investor, you must be aware of the fact that there are three types of trade binary options; these have been explained as follows;

High Low Binary Options

The high and low trade binary options allow you to choose a specific range above and below the original price for a pre-determined rate of return. If you end up in the money, you get the profit of your investment but if you do not, your entire investment is lost. On average, a return of 70 percent or higher is given for an in the money option.

Touch & No Touch Binary Options

The touch and no touch binary option gives you a chance to determine if the price of the commodity will reach a particular high; there is no range in this case, just a single price. If the commodity touches the price even for a few seconds, you are considered in the money and a pre-determined return is transferred to your account. However, you must remember that the price should touch before the expiry time.

Range Trade Binary Options

As the name suggests, you need to determine if the commodity will be within or outside a range of price before the expiry of the trade binary option. A correct prediction can make you rich in a few minutes while a wrong one can leave you out of money. The average range for range trade binary option is lower than other two types because there are greater chances of you hitting the right spot.