Generally, most binary options brokers offer the same types of trading for trading. Only the names can vary. A high / low option is called up / down, for example, and 60-second trading is called speed trading. The following types of options are usually tradable:
- High / Low
- One Touch
- 60 seconds
A current innovation is the so-called wish option. This type is often referred to as the option builder. What is meant is that the trader can select the option properties individually and thus tinker with his binary option. If you consider that in many cases the term and certain barriers are specified, then this is definitely progress. But the type of option is not yet very mature, because the brokers mostly only offer the option to adjust the term. This term does not offer so much choice. The choice between a few minutes and an hour is not very large and does not exactly speak for a desired option in all respects.
Which market situations can now be implemented with the individual types? We would like to present some such situations based on the technical analysis of the markets. Which type of trading is easier to implement and which type of option should you avoid?
High / low option in USD / JPY
The high / low options can be used in many cases because you just have to choose one direction. It is important that the underlying price is above or below the price when the binary option is purchased after the option period has expired. They also say "in the money". The 1-hour chart of the currency pair USD / JPY shows us two such options. The next chance for a high option would be above the resistance. Since the downtrend has already been broken, there is a higher likelihood that the USD / JPY will continue to run higher.
One Touch Option
It should be said in advance that the broker is the Set goals with the one-touch options. Nevertheless, a higher return can usually be achieved. The goal only has to be achieved once within the term. It should be noted, however, that the specified goals move with the course. With one-touch options, it is therefore important for the trader to be able to react quickly.
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Range option in EUR / USD
In our view, the range option is one of the most popular most difficult tradable binary option ever. As a rule, the likelihood that the price will remain within a fixed barrier over the course of an hour seems very low. A longer sideways phase is necessary for a range option. However, the duration of these phases is difficult or even impossible to assess. In this case, we would recommend refraining from buying the option, even if the sometimes high returns seem tempting. The trader would definitely be better served with the one-touch option.
60-second trading in AUD / USD
On the one hand, 60-second trading can be very good be simple, but complicated on the other. The crux is often the fact that you can't always wait for a pattern to emerge. You have to guess the price movement, so to speak, and on a short-term basis. Of course, this is somewhat more risky than on a long-term basis, because volatility is so much higher. But basically, you can even take advantage of the short-term by acting only when the course meets with strong support or resistance.
In about 80% of cases, this is done Zones at least a short-term countermovement. As in the 5-minute chart for the AUD / USD currency pair, we see an upward trend. This trend has been confirmed twice. We can therefore count on a countermovement on the third confirmation. Even if the trend is broken after that, we can use that countermovement for a minute and earn 70% return.
It all comes down to analysis
There are some pitfalls in binary options trading, as was tried in the example of the range option to make it clear. But our analyzes show that trading can run profitably with the help of somewhat more in-depth considerations. Of course, the dealer would have even better chances with options of choice, in which he himself could influence as many properties as possible. However, this would possibly reduce the return.