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Binary Options Experts Present 3 Popular Types of Binary Options Trading

What are Online Binary Trading Options?

Trading using online binary options has changed the face of commodity investing. You can log onto the binary trading platform of your choice and process your transaction without using a broker. This makes trading simpler and not so expensive plus provides hours of fun and hopefully profit.

Purchasing a binary option is simply buying the right to sell a commodity at a set price and expiry time. As with traditional trading methods, you can earn a high return or lose your investment.

“Education is important for binary options traders,” report trading specialists. “Leveraging today’s educational tools is the key to trading success.”

The advantages to binaries include knowing from the beginning of the trade how much you will win or lose.

3 Popular Types of Binary Options

The three most used ways of binary options trading are high-low binaries, touch-no touch options and range options.

(1) Using hi-low binary options trading, the goal is to predict if a commodity or underlying asset will expire above or below the purchase price. It does not have to be the exact price but just a forecast of high or low. Expiry times can be within 15 minutes from the time you place your prediction until the end of the day. Most binaries do expire within the day, but there may be case of expiration dates being a week or more.

If you calculate correctly you will receive a pre-determined return on your investment. Depending on the trading platform or online house you use, this return could be up to 85% of your original outlay. Do note that if you do not predict correctly, you can lose your entire speculation. There are trading platforms that will return a percentage of your investment, but it is usually pennies on the dollar.

(2) Touch / No Touch binary trading involves predicting whether or not the underlying asset will reach a price at some point before the expiry time. If it reaches this price level even for a moment or so, you will win a pre-determined return. If the asset never reaches the predicted price, you will lose your investment.

(3) Range binary trading involves predicting if your chosen commodity or underlying asset will end within a certain price range or outside that price range. If you choose wisely your binary will earn you a substantial pre-determined return. It can also cost you the entire investment you wagered.

You do not have to predict the rise or fall of an asset with no information or just by guessing. Read and study trade journals or use the Black-Scholes Formula. This is an economic predation used to track and predict the volatility of a commodity or asset. It follows commodities over time.

Using formulas will provide you with a range of prices your chosen commodity has followed over time. Use the Black-Scholes model as a risk management tool. It is also a mathematical model of different financial markets which contain offshoots of investment tools. You can predict the rise or fall of an asset by using theoretical estimates of the price. This formula has actually legitimized binary option trading and gives traders a more accurate history in the rise and fall of underlying assets.

To learn more about binary options trading, get a free consultation with The Binary Options Experts team at www.binaryoptionsexperts.com. To also learn how to earn from their affiliate program visit and bookmark: www.binaryoptionsexperts.com/affiliate where experts are on hand to help.

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