As a trader you need to be aware of the other types of binary options if you want to trade successfully in this market. You can choose the type depending on your specific trading needs.

The type can be decided depending on the prevailing market conditions and trends. You can make the choice based on the best payout that is offered in the market.

Up/down – This is the most common type of binary option and is also known as call/put or high/low option.

• The trader speculates whether the underlying asset may close up or down at a predetermined period. You can choose to take a long or short position.
• The various expiry times available to traders include 60 seconds, 15 minutes or one hour, end of day or more than one day.
• After the trader choose the expiry period they do not have to monitor the trade as it automatically expires at the specified time.
• The closing status of each trade is notified to the trader and this helps keep track of the profits.

Touch/no touch or double touch – In this type the trader predicts if the value of the asset increases or decreases. They predict if the value touches or does not touch the level specified. It can be at a level that is lower or higher than the current value of the asset.

• The traders may be able to purchase the options during weekend when the markets are closed.
• When the markets start trading during the week and if the asset touches the level that has been specified then the trader makes a profit.
• No touch is when the level is not reached. In double touch there are two levels that are specified and if either one of them is touched, it is a profit.

60 second option – It is a popular type where the trading expires in 60 seconds.

• When the asset starts moving in one particular direction then the trader can take advantage of it by placing multiple trades so that they may be able to maximize the profits.
• As the expiry time is very short it is important that the trader recognizes the trend and responds immediately.

Boundary option – It is also known as range or tunnel option and is similar to the touch option.

• The upper or lower level boundary or range is specified and the underlying asset needs to stay within this range so that it is profitable.
• You can choose this type of trading when the market is stable. It is best avoided when the markets are volatile.

Some brokers offer other types of binary options that can be created by the traders themselves. This can enable the trader to use analytical tools to follow the movement of the asset during the option period.