The 7 Most Common Types of Binary Options Trades

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Binary options have become increasingly popular as a high-risk, high-reward type of trading. Since there are many different types of binary options trading, it’s important to understand what the types of trades you can choose from are before you start investing in binary options. The better you understand different types of trading, the less likely you are to get scammed on a trade.

7 Most Common Types Of Binary Options Trades

High/Low

One of the most common types of binary options trades is known as a high/low options trade. This is also one of the most simple types of trades for novice binary options traders to understand and execute successfully.

In a high/low trade, you look at an asset and decide whether it will be higher or lower than the current price at a specific expiry time. The expiry time typically ranges from a few minutes to a few hours away. Most binary options trade expiry times are on the same day.

If you think the asset will be at a higher price at the specified time, you pick “high” for your trade. If you think it will be at a lower price, you pick “low.” If you are correct, you usually make somewhere between a 60% to a 90% return on your initial deposit. If you are wrong, you earn nothing.

One Touch/No Touch

One touch/no touch binary options trades are a little different than high/low trades. In this type of binary options trade, you bet on whether the price of an asset will reach or not reach a certain price point before the time of expiry. The risk is higher for one touch/no touch trades, but the potential return on investment can be as high as 300% if you are right.

Boundary/Range

Boundary options or range options is a type of binary options trading in which you bet on whether the price of a certain asset will stay within a certain range or go outside of the range before the trade reaches its expiry time.

Compared to high/low trades and one touch/no touch trades, boundary/range trades can be less risky, especially if you’re trading in assets that don’t typically experience big price swings. They also offer around 100% returns if you win, making them a potentially more rewarding binary options trade than high/low trades.

60 Seconds/Short Term

Short term binary options trades are a niche type of binary options trading which occurs over very short periods of time. These types of trades are often just 60 seconds long, which is why they are also known as 60 seconds binary options trades.

Short term binary options trades are usually high/low or one touch/no touch trades. However, since the trading period is so short, this type of trading is much more risky than other types of high/low or one touch/no touch trading.

Long Term

Long term binary options trades are the opposite of 60 seconds trades. In these trades, the trading period is often several days, weeks, or even a month long. These longer trading times make it easier to predict the price movement of an asset, as long as you have some trading experience and knowledge of the market.

Because of this, long term binary options trades are popular among more veteran traders. However, long term trading is not as popular among brokers and new traders, who prefer faster action and quicker returns.

Ladder

Ladder trades are one of the most complicated types of binary options trades. In these types of trades, there are multiple expiry times and prices during the trading period, and you have to bet whether or not an asset will reach these different points along the “ladder” at certain times.

Every time you are right about an asset hitting a price at a specific expiry time, you receive a partial payout. If you are consistently right, you can earn well over a 100% return on your investment. But, since you’re betting on so many different things at once, it’s much easier to be wrong. Ladder trading can be rewarding, but it takes time to learn how to do it effectively.

Pairs

Pairs trading differs from other types of binary options trading because you are looking at two assets instead of one for each trade. In pairs trading, you bet on the relative performance of one asset vs another. In other words, you have to decide which of the two assets will be performing better than the other at the trade’s expiry time.

Note that it doesn’t matter whether the assets’ prices go up or down during the trade period in order for you to win this type of binary options trade. The only thing that matters is that you’re right about how one asset performs compared to the other.

Which Type of Binary Options Trade Is the Best for Me?

In order to choose the best type of binary options trading for you, the first step is to make sure you understand how all the different types of trades work. This will allow you to determine which type of trading you are most confident betting on an asset’s performance with.

For example, you might want to start out with simple high/low binary options trading. As you get the hang of it, you can try to learn more complex forms of binary options trading.

No matter what type of binary options trading you decide to execute, you should always choose a regulated binary options broker to make your trades through. This will help ensure that you don’t get scammed by a fraudulent broker, of which there are many.

As long as you follow this advice, you should be relatively safe from scammers. However, there is always the chance of falling victim to a binary options scam. In the unfortunate event that this happens to you, don’t panic — you may still be able to get your money back.

How To Get My Money Back From a Binary Options Trading Scam

If you think you’ve fallen victim to one of the different types of binary options trading scams out there, the best thing to do is work with a chargeback company to try and retrieve your stolen funds.

Chargeback companies, such as PayBack, are fund recovery specialists who know the ins and outs of the many different investment scams, including binary options scams. These fund recovery experts may be able to get some or all of your money back through a chargeback or by using other tactics to track down and pressure the scammers.

For the best chances of getting your money back after a binary options trading scam, contact Payback today for a consultation. The sooner we start reviewing your case, the better the odds of success are.