Binary Options – Types

The traders in the trading of the binary options as with any option trade, offer many different types of options to choose from. We are talking about exotic option types and models of major. There are five main types of options as models and these are double any touch, double one-touch, no-touch, one touch, asset-or-nothing and cash-or-nothing.

The most important terms in the trade for Binary Options

The base value is the financial product for which the binary options can be purchased. Underlying can choose from currently four and these are currency pairs such as EUR / USD, commodities such as copper, silver, and stock indices such as the FTSE 100 stocks like Microsoft. The call option is one of two forms options, which are available in the trade with binary options. There is an option to purchase and the trader must buy a call when he sits at the base value for the price increase.

The base value is the one for which the trader wants to buy Binary Options. Is his prediction to the expiry date, then the trader can make a profit? The put option is also one of the two forms of options and there is a put option. The trader buys a put, when he sits at the base value to the price decline. If the forecast for the expiry time, then make a profit.

A certain expiration date of the option is called the expiry time. This expiration date is determined by contract for the purchase of the binary option. The running time is about an hour, a day, a week or a month. The recoverable profit expiration date is in the money. The opposite of the money is out of the money. The expiration date is the price of the underlying security above the exercise price, and then it means money in the call option. However, this means the put option that the expiry time of the price of the underlying is below the exercise price.