Guide For The World Of Binary Scams

High/Low trade: High/Low traders also recognized as Up/Down, or Call/Put investors. This is the most basic type of binary option trade. For the common high-low binary option, the investors buy a binary call option if he/ she thinks the cost of the underlying asset will go up above the present market cost or if the investor decides the underlying asset price will go down, then he/ she will buy a binary put option. If the presumption is correct, the investor will receive a payout. Otherwise, he/ she loses the primary investment. High/Low trades have both short and long expiry times, ranging anywhere from 60 seconds to a few days or maybe longer.

Here is an example of a High/Low trade: 

You think that the cost of silver will go up by the end of the trading period, so you look up the silver on your trading platform. You see a High/ Low trade available with an expiry time of a few hours, near the end of the trading day. Believing that the silver price will surely grow above its present price based on your trading methods and expertise, you decided to enter into High/Low trade and picked “High” or “Up” as the direction of the trade. After waiting for a few hours, the cost of silver grows up, your prediction was spot on and you will receive a payout. Congratulations!

Touch Options

This is another very common trade type which consists of three types of touch options. These are touch, no touch, and double touch.

An investor who bets on touch binary options is trusting that the price of a particular option will increase to or over a specific amount. No Touch is a simple variation where an investor bet price will not touch the trigger point within the expiry time. These trades are directional since the trigger point rests in one direction or another, however, they are also more precise than High/Low trades. They can offer higher payouts. On the other hand, an investor who bets on double touch options puts two separate bets on two separate positions. Such an investor gains money if either of these conditions is met.

The touch trading option is quite different than High/Low trading. When an investor opt-in for a touch option, he/ she places a trigger point, which can be present anywhere on the chart. Generally, the further away the trigger point is from the present cost of the asset, the possibility of earning greater payout grows. A point which is placed near the present price, which is more comfortable to reach offers a lower return, because the risk is lower.

Here is an example of Touch Options:

You believe that the stock of Facebook is going to rise within the next couple of hours. You are certain it will reach a particular cost before dropping back down. You put a One Touch trade on the Facebook stock, betting it will touch that price within the next few hours. After 1 hour, you see your assumption was correct, it touches the price you defined, and you make money since the option has not yet expired.

Sixty Second Binary Options:

Sixty-second binary options are generally the same as High/Low trade. However, an honest question might arise is that if they are similar then why they are set aside?

Well, the reason is it’s a specific kind of High/Low binary options trade that takes place in a very short time frame. As the name suggests, each 60 Second trade lasts for a single minute before closing. The abilities needed to be successful in sixty-second trading options are quite unique. There are numerous challenges posed by trading fast which investors do not need to deal with when you trade over longer periods.

Here is an example of Sixty Second Binary Options: You are browsing the chart of gold in real-time, and your experience says that the gold price is about to increase in the next 60 seconds. You have your trading platform with you and you browse through the gold section, you see a sixty-second option is available which will expire in one minute. Without wasting a second, you put your desired amount you want to trade, now the trade process has been successfully initiated and for the result, you must wait 1 minute. After sixty seconds your prediction became true and 60 seconds later you win.

Boundary Options: As the name suggests, boundary options offer two price levels; the upper and lower level and both are determined by the investor. The price range can be narrow (i.e. between $11.20 and $11.30) or broad (i.e. between $11.00 and $20.00). The investors’ job is to assume if the cost level of the assets of your choice will remain within the designated range or go beyond that range. The investor has to choose the expiry time as well. The longer the expiry time frame the wider the boundary. In this trading process, an investor wins when options do indeed remain within the defined price range for the predetermined period.

Here is an example of Boundary Options: Let us take the USD/EUR currency pair for an example. Which right now at 0.7115 and the market is volatile. Hence, the investor believes that the price will not stay in a particular range. Let us have a lower level at 0.7100, a higher level at 0.7128, while the expiration time is 48 hours. If in 48 hours the price of the USD/EUR currency pair is below 0.7100 or grows more than 0.7128, then the trade will be closed on the money.