What types of binary options are there?

Highly significant factors, based on which binary options stand are the strike price and time, which is also known as the expiration time. The entire gameplay over here is about speculation and prediction, which circles around whether the price of an asset, mainly gold, silver or stocks will rise or fall at the end of the expiration period as compared to the beginning of the trade-off.

The Call and Put options in binary trading represents two different market situations. From these two options, the trader can derive maximum profit, if traded well.
  • Call Option
In simple terms, Call option means that there is a safety net, which allows the owners to buy a fixed number of shares of a particular financial instrument at the strike price within expiration date. It is of crucial importance as it can predict whether the market price of an asset is going to be higher than the previous price or lower.   
  • Put Option
A Put Option is the entire opposite of a Call Option. Here, it means that with the help of a safety net, owners can sell a fixed amount of shares of an asset at the strike price within expiration date. The name Put is derived from the idea of putting the stock in order to sell to someone else. Also, Put option speculates that the price of the instrument or asset is going to fall at the expiration time.
  • Trading on Call and Put Options
As binary options deals with the Call and Put options, traders get enough time to lock in profits with the help of a single option. The best thing about trading is that you get to make extra income in myriad situations, including bull and bear markets.

More types of binary options

Yes, there are more types of binary options. Only the basic options are explained above. But there's more, for example:
  • Ladder binary options
  • One Touch / No Touch binary options
  • Long term and Short term binary options
All of these are different, yet all of them respect the principles of Call/Put options described above. It's not difficult at all, even if it might look like it is at first.

In the picture above, you can see a simple platform for trading binary options with the broker eXbino. There are, however, more brokers to choose from - you can have a look at the best brokers for trading with some strategies.

Go ahead, give it a try!