What You Need to Know

Types of Binary Option Trades

Types of Binary Options Trades

In order to succeed with binary options, it is important to understand the different types of trades that exist.

Regardless of how you plan on trading, or what your market analysis strategy might be, there are certain trade types when it comes to binary options with which you need to be familiar:

  • Rise/fall trades
  • Higher/lower trades
  • Touch/no touch trades
  • In/out trades
  • Digits

Rise / Fall

Essentially, you choose a Rise/Fall trade when you are trying to profit from whether a market will increase or decrease from its current level.

  1. Choose the market, the time period, and what you are willing to risk.
  2. Price the trade.
  3. With most partners, profit 80-100% on your stake if you are correct.

Higher / Lower

The Higher/Lower trade can be used when you want to profit from the market ending higher or lower than a price target.

  1. Choose the market, the time period, and what you are willing to risk
  2. Price the trade.
  3. With most partners, you can earn 10-1000% on your stake if you are correct!

Touch / No Touch

One of the easier trade types is the Touch / No Touch trade. This option can be used when you want to earn from the market touching or not touching a specific price target any time during the contract period.

  1. Choose the market, the time period, and what you are willing to risk.
  2. Price the trade.
  3. With this option, profits are generally between 10-1000% on your stake if you are correct! One way to increase your profits is by choosing a “Touch” trade, with a price target farther away from the current price.

In / Out

There are two types of trades in the In/Out option.

Select ‘Stays’ to profit from the market staying inside or going outside two price targets any time during the selected period.

Select ‘Ends’ to profit from the market stopping inside or outside two price targets at the end of the period.

  1. Choose the market, the time period, and what you are willing to risk.
  2. Price the trade.
  3. Win 10-1000% on your stake if you are correct!

Digits

Choose digit if you want to profit from predicting the last decimal of the closing price.

  1. “Matches” – The last digit of the last tick will match your prediction.
  2. “Differs” – The last digit of the last tick will not match your prediction.
Editor's choice 2014