Types of binary options
Although most of the options discussed and negotiated binary belong to a specific type, there are actually several different types. Without going into esoteric universe of binary options, we present and describe the five main models in which these generally include: cash-or-nothing "," asset-or-nothing "one-touch", "no -touch "and, finally," double-one-touch/double-no-touch. When it comes to binary options, it usually refers to those type of "cash-or-nothing", but you can come in the other types in various trading platforms and markets.
Options binary cash-or-nothing are the most popular form of binary options. In this type of binary options, the exercise price is determined (usually the price of capital when the option is purchased). It then bought a contract for a call or a put option, depending on whether the investor provides that the capital will end above or below the strike price. If the investor was right at the end of the contract earns a fixed profit that generally ranges between 170% and 200% of participation fee. However, if the investor was wrong, he loses the fee or, in some cases, if he sees anything 10% - 15%.
Options binary asset-or-nothing are in all respects the same as the cash-or-nothing type, with the only difference that the payout is determined by the price of capitalism, rather than an arbitrary fee. This difference is reflected in the effective liquidation of the capital, rather than the conclusion of a contract on the same, it is, however, the difference is purely semantic.
One-touch binary option works very differently from those of either cash-or-nothing type that asset-or-nothing. One-touch binary option, the contract terminates when the price of capital reaches a predetermined level. In this case an investor does is decide if the price never reach that level of capital over the life of the contract, and if you end up actually at that level.
No-touch binary option, as the name suggests, is just the reverse of the binary one-touch. Instead of determining whether the capital will reach a certain level, in this case, the settlement of the contract occurs only if it expires without that level ever reached.
Options binary type-one double-double-no-touch and touch are similar to their single counterparts, with one key difference: instead of having a single predetermined level, in this case if you have two. In the case of double binary option-one-touch, the price of capital must touch both values to be paid the contract in the case of option binary double-no-touch, however, the price of capital should be avoided touch both values because you have the settlement of the contract.
Options binary cash-or-nothing are the most popular form of binary options. In this type of binary options, the exercise price is determined (usually the price of capital when the option is purchased). It then bought a contract for a call or a put option, depending on whether the investor provides that the capital will end above or below the strike price. If the investor was right at the end of the contract earns a fixed profit that generally ranges between 170% and 200% of participation fee. However, if the investor was wrong, he loses the fee or, in some cases, if he sees anything 10% - 15%.
Options binary asset-or-nothing are in all respects the same as the cash-or-nothing type, with the only difference that the payout is determined by the price of capitalism, rather than an arbitrary fee. This difference is reflected in the effective liquidation of the capital, rather than the conclusion of a contract on the same, it is, however, the difference is purely semantic.
One-touch binary option works very differently from those of either cash-or-nothing type that asset-or-nothing. One-touch binary option, the contract terminates when the price of capital reaches a predetermined level. In this case an investor does is decide if the price never reach that level of capital over the life of the contract, and if you end up actually at that level.
No-touch binary option, as the name suggests, is just the reverse of the binary one-touch. Instead of determining whether the capital will reach a certain level, in this case, the settlement of the contract occurs only if it expires without that level ever reached.
Options binary type-one double-double-no-touch and touch are similar to their single counterparts, with one key difference: instead of having a single predetermined level, in this case if you have two. In the case of double binary option-one-touch, the price of capital must touch both values to be paid the contract in the case of option binary double-no-touch, however, the price of capital should be avoided touch both values because you have the settlement of the contract.
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