Based on a structure, there are many different types of binary options and every trader has the variety of choice when he starts trading. But, to have a successful trade and make a profit, you must fully understand how each of these options works.
Here are different types of trades and their performance:
Put and Call trades
These two pairs are most commonly used in binary options trading. For example, if you think that the value of one asset will rise you place a call option, on the other hand, if you think that value of the asset will fall you place a put option.
Put binary options – in this case; investor hopes that the underlying asset he has chosen to trade will fall within the designed period, if his predictions were true he will make a profit. Otherwise he will lose money.
Call binary options – when a trades places a call option, he thinks that price of the trade will rise within the chosen period, if he is right, he will make money in any other case he will lose his investment.
One touch binary options
Sometimes put and call options may seem a bit boring for experienced trades, where you have to predict whether the price of underlying asset will rise or fall, within the designed period. The main difference between one touch binary options and others is that here when an underlying asset reaches determined price before the expiration period, then the trade is finished.
For example, when you place a trade, you only have to wait for it to reaches a certain level before you can win a trade and collect money. Even if the option goes up or down in value, as long as it touches that determined level, the trade will be marked as winning. If your predictions were right, you would make a profit.
Full-time period regarding put and call options