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Binary options are a popular financial instrument used to trade in the stock market. They are called binary options because they have only two possible outcomes: either the asset price will rise or fall. Binary options have become a popular choice for traders due to their simplicity and easy-to-understand nature. In this article, we will discuss the different types of binary options.

Call/Put Options

Call and put options are the simplest and Binary_Options_Basics most common forms of binary options. A call option is a type of binary option that allows the trader to speculate that the price of the underlying asset will increase at a specified time in the future. On the other hand, a put option is a type of binary option that allows the trader to speculate that the price of the underlying asset will decrease at a specified time in the future.

One Touch Options

One touch options are a type of binary option that allows traders to predict whether the price of an underlying asset will touch a predetermined value at any time before the expiry of the option. For example, if a trader predicts that the price of gold will touch $1,500 before the expiry of the option, and it does so, the trader will earn a profit. However, if the price does not touch $1,500, the trader will lose the investment.

No Touch Options

No touch options are the opposite of one touch options. They allow traders to predict that the price of an underlying asset will not touch a predetermined value during the lifetime of the option. If the price does not touch the predetermined value, the trader earns a profit. If you liked this short article and you would like to acquire far more facts about Binary_Options_Basics kindly visit the site. However, if the price touches the predetermined value, Binary_Options_Basics the trader loses the investment.

Boundary Options

Boundary options are a type of binary option that allows traders to predict whether the price of an underlying asset will remain within a pre-defined range or move outside of it. If the price remains within the pre-defined range, the trader earns a profit. However, if the price moves outside of the pre-defined range, the trader loses the investment.

60 Second Options

60 second options are a type of binary option that has a very short expiry time of 60 seconds. They are very popular among traders who want to make quick profits. With 60-second options, traders can predict the direction of the price movement of an underlying asset within 60 seconds. If their prediction is correct, the trader earns a profit. However, if their prediction is incorrect, the trader loses the investment.

Conclusion

Binary options are a popular financial instrument used by traders to speculate on the direction of the price movement of an underlying asset. The different types of binary options include call/put options, one touch options, no touch options, boundary options, Binary_Options_Basics and 60 second options. Each type of binary option has its own unique characteristics and trading strategies. It is important for traders to understand the different types of binary options before engaging in binary options trading.

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