Binary options, also known as all or nothing options, digital options, or fixed return options, are a well-known trading instrument in which a person can earn or earn a fixed return on an investment through trading online. Trading through binary options is mostly based on logic. Binary options allow you to choose between two selections, up or down. When you choose to go up, for example, the asset in question is the price of gasoline; if your anticipation is that the price of gasoline will go up more than it currently is, you will choose up, if you choose the down option, your anticipation is that the price will go down. You can set a time limit for these “predictions”, which means you can keep your option for an hour, a day, or even a month. If your “predictions” are correct, you can earn up to sixty-five to seventy percent of your investment amounts. If the option you have is wrong, you can lose up to 85 percent of your investment.
The good thing about binary options is that your risks are well defined, as the amount of money you put into an asset or instrument is at your discretion. Binary options offer you two variants, call and put options. In the put option, this means that the contract purchased by a trader or investor is through an asset, and this asset can be sold (or not) by the trader at a predetermined time. In the call option, the contract allows the trader or investor to buy the instrument in question in an amount, this means that the trader can have the security of the issuer of the instrument.
types of binary options
1. One Touch – This type of binary option allows the trader to get a payout once the trigger has reached or touched the trader’s predicted rate. This means that the trader only gets paid once his “predictions” are met by the rate of an instrument at a specified time, when the specified time arrives and the rate of said instrument does not reach the rate the trader predicted, the trader trader only gets back fifteen percent of your investment.
2. No Touch – This type of binary option means that the investor will only get a payout if the rate of the instrument does not touch the trigger in a certain period of time.
3. Double Tap – There will be two triggers on this type of binary options, one pointing the rate of an instrument down and one pointing it up. When any of these triggers are triggered in a certain period of time, the trader gets paid, if not, they lose up to 85 percent of their investment.
4. Touchless Double: The complete opposite of a one-touch double. When none of the triggers go off in a certain period of time, the merchant gets a payout.
If the merchants’ predictions are correct, the merchant has the option to choose between different payment types. If the trader chooses cash or nothing, the traders payout is cash if their “prediction” is correct. If the traders “prediction” is wrong, he can lose up to 85% of his investment. When trader chooses asset or nothing payout type, traders payout is in security or an asset, just like cash or nothing if the prediction is right, he gets payout in asset or nothing form if wrong . There are also two trading styles that a trader can choose from. In this style of trading, the trader has the option of getting paid once an instrument’s rate reaches or hits the trigger. If he chooses the European style, he knows that when the speed of the instrument reaches the trigger before the time expires, he will lose everything.