As we have often mentioned in our articles, there are several different types of binary options; each Broker has its own offer, that varies from Broker to Broker. This means that some Brokers will offer you some types of binary options, while others do not. For this reason, knowing all the types of Binary Options is very important, so that you will be able to decide at which Broker you want to register.
We will analyse the various types of binary options available; in this article we are going to analyse the “One Touch Binary Options”.
One Touch Binary Option
With the One Touch Binary Options you have to predict if the Prices will reach a certain value (That is fixed by the Broker and can be higher or lower than the current value; firstly you have to choose an asset (Stocks, Commodities, Indices, Forex), then you have to predict if the Price of the chosen asset will reach the fixed value (Fixed by the Broker) at least one time, during the Expiry Time (That you can choose from the ones available).
If you think that the Price will reach this fixed value (That can be higher or lower), you can invest the amount of money that you want on this Binary Option. Remember, the Price has to reach the fixed value just one time, so it doesn’t matter the value of the Price after the Expiry Time (It can be higher or lower than the fixed value); in case that the Prices reach the fixed value (also for just one time) you will earn the Payout (That is already fixed and that you know from the beginning) whereas if your prediction was wrong, you will lose the money invested (Or a part of them). In this case the Payout is very high, and can vary from the 200% of your investment up to 500% or more.
Here an example:
Let’s say that the actual price for the Crude Oil is $100; the Broker has fixed the value to reach for the Prices and is $102,50 and the Expiry Time is 3 days whereas the Payout is 350% (In this case the expiry time can be fixed by the Broker and you can not choose the one that you want). We believe that the Prices will reach this value, so we invest 100 euro on the One Touch Binary Option. During the Expiry time, the Prices reach three times the value fixed but after the Expiry time the value is $101,80 but it doesn’t matter for us: because the Prices have to reach at least one time the fixed value, no matter of the value of the Prices after the Expiry time. So in this case, we will earn the Payout: 320 euro; whereas if the Prices had not reached the fixed value, we would not have earned the Payout but we would have lost the money invested.