When you decide to play the binary option market and join one of the hottest trends in investing, you’ll quickly realize that it’s more complicated than you may have originally thought. There are a ton of different ways to play the binary option market, and each one differs pretty heavily from each other. It’s important to know exactly what kind of binary option bet you are placing when you decide to start playing the market, so you know exactly what needs to happen for you to see that huge return!
Hopefully these quick breakdowns of different types of binary options will be helpful for you. But, like with any sort of investment, it’s important to find the right broker. Make sure you do your homework to find the best binary options brokers 2013. Having a good broker could be the difference between making a lot of money in the binary option market, or simply being just another unsuccessful investor.
This is perhaps the most basic type of binary options bet, but also maybe the most exciting. Basically, you make a quick bet that a certain underlying market will pass through a predetermined price, before the trade is expired. If that market passes through that set price before the time is over, the binary option investment is returned plus a substantial addition. On the other hand, if that market fails to reach the set price, there is no return and the investment is lost.
The ladder investment is similar to the one touch investment, but there is one major difference. Like the one touch investment, a predetermined price is set when the initial bet is made. But, unlike the one touch investment, the underlying market must actually close above the predetermined price. The one touch bet must simply pass through a certain level, and the bet is won regardless of where it closes. Since the ladder investment usually has a slimmer chance of happening compared to the one touch, it usually has a higher payoff.
Another type of binary options bet is the target. A target bet is a bet that a certain underlying market will finish trading within a predetermined price range. If it finishes in that range, the investment is successful. If it doesn’t fall into that range, there is no return. It’s a solid investment for those who aren’t as big of risk takers as those who may be interested in one touch or ladder investments.
A hi -o binary options bet can be an exciting one that you could be following all day. It’s very simple. All it is, is betting that an underlying market will hit either a high or a low in trading compared to the previous day’s high or lo. If it hits either that high or low, the investor is successful.
There you have it. Now that you know the different kind of binary options bets, you should be able to figure out which ones will work for you, and with a little practice which ones will make you a successful investor!