Contracts From Binary Brokers
As well as being one of the simpler methods of trading to understand, the use of binary options as a trading method has the advantage that there are number of ways in which you can profit from market moves.
With a broker such as 24Option, you will be able to trade a wide range of contracts which can be used to earn profits from a variety of different price outcomes on the chart. This means that is it possible to profit from a number of market conditions. For example often with many existing investment forms, traders need the market to be trending strongly so that they are able to find opportunities to take on their accounts. This is due to the 'long' or 'short' trading approaches that each of these methods provide.
If the price of an asset is not moving strongly in either direction then it can be difficult to trade with any success. However the binary trader can at these times make use of specific contracts to make use of such markets. In fact he doesn't even need the price to move at all in order to be capable of making a profit.
Below you will find a brief explanation of each of the main contract types that are offered by brokers of binary options with some insights into how you can make use of these in different market conditions.
The Higher / Lower Contract
This is the classic binary option contract which is used to when you want to forecast that a market will finish higher or lower than the currency price that the asset is at. These contracts can be placed on a wide range of assets will also can be set to run over many time periods. They are the most widely offered contract types and echo the 'long/ short' trading strategies which are used elsewhere in the financial world.
The Touch/ No Touch Contract
This contract offers a newer approach and can be used to make profits from selecting a price that you either think 'will' or 'will not be touched over the time specified on the contract. The real bonus of this binary contract, particularly for the touch contract, is that you don't have to hold it until the official expiry. You will win as soon as the level is touched and see your profits automatically credited to your account. It is good to use this in strong markets or where fast moves are anticipated.
The Boundary Contract
The name here will help to give an indication of the function of this contract. It is also sometimes known as a 'range' trade. It is simpler to the Touch trade but rather than simply setting one level, two levels are set. One is above the current price and one will be set below. Essentially this contract is used when the price action of the market is expect to show little real volatility. You are in effect setting up a tunnel that you expect the price to move through for the duration of the contract. If neither of the two levels are touched then you earn the stated return.
Each of these contracts can be placed on all of the available assets that the binary options broker has to offer. They allow for a great range of strategies to be traded and can be used to make continual profits from the markets no matter what movement they are showing.
With a broker such as 24Option, you will be able to trade a wide range of contracts which can be used to earn profits from a variety of different price outcomes on the chart. This means that is it possible to profit from a number of market conditions. For example often with many existing investment forms, traders need the market to be trending strongly so that they are able to find opportunities to take on their accounts. This is due to the 'long' or 'short' trading approaches that each of these methods provide.
If the price of an asset is not moving strongly in either direction then it can be difficult to trade with any success. However the binary trader can at these times make use of specific contracts to make use of such markets. In fact he doesn't even need the price to move at all in order to be capable of making a profit.
Below you will find a brief explanation of each of the main contract types that are offered by brokers of binary options with some insights into how you can make use of these in different market conditions.
The Higher / Lower Contract
This is the classic binary option contract which is used to when you want to forecast that a market will finish higher or lower than the currency price that the asset is at. These contracts can be placed on a wide range of assets will also can be set to run over many time periods. They are the most widely offered contract types and echo the 'long/ short' trading strategies which are used elsewhere in the financial world.
The Touch/ No Touch Contract
This contract offers a newer approach and can be used to make profits from selecting a price that you either think 'will' or 'will not be touched over the time specified on the contract. The real bonus of this binary contract, particularly for the touch contract, is that you don't have to hold it until the official expiry. You will win as soon as the level is touched and see your profits automatically credited to your account. It is good to use this in strong markets or where fast moves are anticipated.
The Boundary Contract
The name here will help to give an indication of the function of this contract. It is also sometimes known as a 'range' trade. It is simpler to the Touch trade but rather than simply setting one level, two levels are set. One is above the current price and one will be set below. Essentially this contract is used when the price action of the market is expect to show little real volatility. You are in effect setting up a tunnel that you expect the price to move through for the duration of the contract. If neither of the two levels are touched then you earn the stated return.
Each of these contracts can be placed on all of the available assets that the binary options broker has to offer. They allow for a great range of strategies to be traded and can be used to make continual profits from the markets no matter what movement they are showing.