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Types of Binary Options and How to Pick Them (Part 2)



First part of this article was published here.

Short Term: 

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shortterm

Trading Short Term Options is similar to trading classic Binary Options. The difference is that those options expire at 30, 60, 120, 180 or 300 seconds from the initiation of a trade and the investment amounts range from 0.05 BTC to 2.5 BTC.

Short Term Binary Options are designed mainly for more aggressive traders. Those instruments provide instant profits and allow traders to take advantage of markets high volatility. For example, short terms are ideal for

Short Term characteristics:

  • excellent for aggressive trading
  • instant profits
  • the perfect tool for rapid market fluctuations
  • great supplementary tool for basic binary options
  • a chance to start out small and invest with lower amounts for the learning purposes

One Touch:

onetouch

One Touch Options are not similar to the rest of the provided Binary Options at BitPlutos, as they provide higher payouts in case an asset reaches a pre-defined price and are tradable when all financial markets are closed during: weekends, holidays, and after-hours. If at any time from the initiation of the trade until the expiration of the option, the underlying asset reaches or surpasses the target price, then the option will be “In-the-Money” and the payout amount is credited at the investor’s account. The investment amounts range from 0.1 to 1 BTC. One Touch Options are purchasable on Saturday from 12:00 AM to Sunday 19:00 PM. The Options are traded from Monday 12:00 AM to Friday 17:10PM. The options may only be purchased in the units of prices which are specified on the site. The options will be sampled over a period of five days, Monday through Friday, once a day in accordance with the Reuters 17:00 sample rate.

These are the options mainly for experienced traders as they deal with greater risk and return than the regular binary options.

One Touch characteristics:

  • greatest profits in whole binary options repertoire
  • perfect for major market situations and crises
  • greater risk than with regular binary options

Ladder

ladder

The Ladder is a trading tool that allows the trader to make multiple predictions on a particular asset and expiry time, while analyzing the corresponding payouts and profits. As oppose to classic Binary Trading (choose, analyze, invest), with the Ladder, a trader can select multiple options for the same expiry time that are deep “in the money” to gain a few % points in a “safer manner”, or choose an option that is “out of the money” to gain a potential return that can reach up to 1500%.

The investment amounts range from 0.05 to 0.5 BTC.

Ladder characteristics:

  • the best starting tool for novices, perfect for patient investors
  • provides investment safety and risk management like no other tool
  • with proper attitude, the efficiency in Ladder trading reaches up to 85%
  • profits and risk are always your choice, you can simply choose how much you want to profit/risk
  • great to use for predictable areas of support and resistance

Forex/CFD

forex

Trading foreign exchange on the currency market, also called trading forex, can be a thrilling alternative to the regular binary options at BitPlutos and a great source of investment income. You can make a lot of Bitcoins without putting too much into your original investment, and predicting the direction of the market can be quite exciting. The investments amounts range from 0.1 to 4 BTC.

In forex trading, you make Bitcoins predicting fluctuations of the currency rates. You need to choose your currency first, then your desired leverage you want to trade with (leverage is a ratio of the transaction size to the actual investment used for margin. It allows a client to trade without putting up the full amount). Enter the amount you want to invest and decide if you want to BUY or SELL the currency pair. If you think that the currency pair will lose value, SELL it. If you think otherwise, BUY it. Also, you can set your TAKE PROFIT amount which actually stands for your maximum profit for that investment or STOP LOSS amount that indicates the maximum loss you are willing to suffer.

Features of forex trading:

  • forex trading is open as long as markets are available. It starts in Australia on Sunday evening and closes in New York on Friday
  • forex markets are subject to liquidity, which means we can move large amounts of money into and out of foreign currency with minimal price movement
  • in forex, the cost of a transaction is built into price. This is called SPREAD, which is the difference between buying and selling price
  • forex allows trading with leverage which means the ability to trade more money on the market than what is actually in the trader’s account. If you were to trade at 1:50 leverage, you could trade 50 BTC on the market for every 1 BTC that was in your account. This means you could control a trade of 50,000 BTC using only 1000  BTC of capital.

CFD (Contract for Difference) trading differs from the regular Forex only in assets put into action. In CFD you trade with everything but currency pairs (metals, energy, crops, other commodities, indices, stocks etc). CFD trading is mostly influenced by specific factors, such as supply and demand of a given commodity or trend changes associated with business sectors. Forex trading on the other hand is mainly driven by global events, like large employment shifts or international political changes.

Forex trading characteristics:

  • designed mainly for experienced traders
  • enables to make substantial money with leverage, still may be  very risky
  • perfect to use when global and financial crises occur
  • good risk management tools (Stop Loss/Take Profit)

These are the binary option types you deal with when entering binary options trading. Make sure to read our next guide on how to manage risk in trading!

And we have a very special gift or all the readers: sing up now and get NO RISK trades with BitPlutos! What does it mean? It means that the broker will return your lost trades back to your trading account! The amount of no risk trades is negotiable and depends on your initial deposit. For those who feel more comfortable, the broker offers up to 100% Welcome Bonus. Just open your account with one click below!

For more info, go to www.bitplutos.com or email at: support@bitplutos.com 



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