Wondering about the Main Types of Binary Options?
Many binary options traders started off trading with the common high-low binary option. Once they are more experienced, many binary options traders will look to more advanced types of options to get an edge on the market.
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High-Low Binary Options
This is the most common type of binary option used by novice traders. Traders buy a call if they expect the underlying price to go up or a put if they expect the underlying price to go down.
One-Touch Binary Options
When a trader purchases a one-touch binary option, a payout is earned when the underlying asset price reaches or surpasses a specific price barrier anytime before the option expires.
No Touch Binary Option
Conversely, for a no-touch binary option, a payout is earned when the underlying asset price does not reach or surpass a specific price barrier before the option expires.
Double One Touch/No Touch Options
With double touch/no touch binary options, there are two price barriers – namely the upper or lower price barrier – for the underlying asset price to either hit or miss in order to receive a payout.
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