Choose its investment with Binary OptionsBy BinaryOptions On May 22, 2012 Under Binary Options - Advices & Tips
If you are interested in binary options, you may have noticed that all brokers offer different options to take a position on Binary Options. We find in general 3: Up / Down, and One Touch Zone. How do these options? Which is it better to choose when starting? How to put the odds on his side of making money with each option? Try in this article to see a little clearer.
1. Up / Down, and One Touch Zone: 3 different modes of investment:
When Binary Options have emerged as a financial product in 2008, there was only one type of investment – which has just given its name to binary options: the option up / down because as the name suggests , there are only two possibilities: the rise or fall. Since, in response to user requests for Binary Options become more and more new forms of investment have emerged:
- The option up / down (this option is also known as brokers High / Low or Call / Put): it is whether at the end of a period of time t, the value of assets has decreased or if its value has increased. If the forecast is correct, the investor pockets a percentage usually between 65 and 85% of the amount of its investment, in addition to the latter.
- One Touch option: in this option, it is whether by the expiration of a contract on a fixed time period t, the value of the asset or not reach the target price set by the broker. If the forecast is correct, the investor pockets the contract again.
- Area option (sometimes also called Range option): with this option, it is whether a value will remain or not in an area of price: the broker defines an area of price for the asset (with a above and below). The investor has two options: either he is betting that value will remain in the channel, it is going to emerge. If his prediction is correct, he pockets the contract value pre-defined.
2. What options to use for beginners?
To begin, it is best to start to specialize and learn to use the options one after the other and not simultaneously use 3 because it is the best solution to lose all his money. To start, the option up / down is the easiest to use. It should even be used with a timeout as small as possible. When searching for brokers, consider checking that you are interested in offering periods of expiry of 15 or 30 minutes. Once you gain maybe a little less than on expiration times longer, but the chances of success are higher to get your feet wet.
3. When to use the other options?
As to your practice, you will see that depending on the economic calendar or the time of day or by type of development assets, it is better to use a particular option.
One Touch monitor options especially when announcements are being made and that the market may react significantly upward or downward. Similarly, when a line of resistance will be achieved, it is easy to predict some declines and therefore the production of certain contracts One Touch.
Option Zone can be used successfully especially when markets are uncertain and that for more than an hour they remain in the same price zone: then there is a safe bet that this trend will continue in the absence of important events on the economic calendar.
To make money in the long term with binary options should be thoroughly familiar with the different options that are available. Take the time to understand how it works before you start and you decide to use them.