Types of Binary Options | High/Low, One Touch, Touch / No Touch…

High/low options

The basic type of binary options, High/low options have a very easy principle, which can anyone very quickly understand. The only task you have got is to predict whether the price of a certain underlying asset will be lower or higher at the time of expiration. If we demonstrate it on an example, it may look as follows. I buy high option of the currency pair EUR/USD (therefore I am choosing upwards direction) at the current price 1.24231. And I assume that the value of this option will be after 30 minutes and 13 seconds higher than it is now. In case that the value shifts even only at 1.24232, my trade will be successful and I earn fixed amount (70-85%). Otherwise, I lose the amount I have invested in this particular trade. High / Low options are the most popular types of options due to their simplicity and level of risk.

  • Known also under following names: Call/Put, Up/Down
  • Payouts: 70-85%
  • Risk: The lowest (in comparison to other types of options)

 

high-low-options

 

Touch / No Touch

When we trade Touch options we predict, whether the price of an option will touch, or won‘t touch specific boundary within a certain time. Touch options also offer two directions – Up and Down. If we choose Upwards direction, we predict that the value of the option gets over the upper border (or at least touches it). In case we choose a downward direction, we conversely predict that the price will get under the bottom limit border. The advantage of trading touch options is that if the value of the option gets at least once over/under the border, the trade will automatically close itself as a profitable investment, and you do not have to wait until the end of the expiration date.

When we trade No touch options, we will be again given two choices to pick from (Up and down). In case we select Upwards direction, we predict that the price won’t get over the upper band. Conversely, if we choose Downwards direction, we predict that the price won’t get under the lower band. No touch options don’t offer premature termination unless your trade ends out of the money. That happens in case we have chosen downward direction and the price crossed under the bottom band, or conversely if we have chosen upwards direction and the option crossed the upper band.

 

  • Known also under following names: Touch / No Touch, Above / Below
  • Payouts: 70%
  • Risk: High

 

touch-no-touch

One Touch

One touch options are almost the same type as the touch/no touch options, the only difference is just that the lower and the upper limit is at One Touch options very far from the actual price of the underlying asset. Payouts from trading one touch options are very high, you can get up to 550% of the investment you put into the trade. However their trading is very risky, because of one simple reason, the boundaries are way too far from the actual value of the option.

 

  • Payouts: 250%-550%
  • Risk: Very high

one-touch-options

60 second options

It is the same kind of binary options as High/Low options. The only difference that 60-second options offer is that we know their outcome in 1, 2 or 5 minutes since buying/selling the option. This is the fastest way how you can trade binary options, however, they are riskier than classic high/low options, because it’s harder to determine the direction in such a short time.



Michael
Author: Michael
Hi, I'm Michael and my area of expertise is forex and binary options trading. I specialize in technical analysis, namely in chart pattern setups. I educate traders of all levels and I believe that prerequisite to successful active trading is always knowing risks of the game. My most current interest lays in cryptocurrencies, especially in Ethereum and in decentralized applications. I do not give investment advice, but for general inquiries please use the comment section under any article.

8 Comments

  • Nazeer Ahmed

    Hello my name is Nazeer i started trading on iq options for some time and do a lot of trading on demo account and sometimes on real account i still want to improve my trading knowledge can u guide me please.

    • Adminbeasts
      Adminbeasts

      Hello Nazeer, that is great, if you want to improve your knowledge please follow our trading tips and guides on this website. I recommend checking out our binary options guide on the web and bookmarking TradingBeasts.com 🙂

  • kumar

    Does IQ Option have one touch /touch-notouch options?

    • Michael
      Michael

      Hello Kumar,
      No IQ Option does not have touch options. It has classic High/low binary options (turbo and long term), classic stock options, digital options, Forex and CFD.

  • Kumar Sree

    Hi Michael,
    Appreciate your good intention. My query is that do you know who is the best REGULATED and reputable broker that provides good platform for one touch options (touch/no-touch) with daily trading availability? Also would like to receive your tips for how to earn USD200/-per day profit with an opening deposit of USD250/-. Thank you for your valuable advise.
    Mr.Kumar

    • Michael
      Michael

      Hi Kumar,
      I think that the best broker for one-touch options is BDswiss, you can check them out at BDswiss.com. They are regulated by European regulator CySEC and they have over 700k active traders. What is your experience with trading that you want to make 200 dollars in a single day with only 200 dollars deposit?

      Michael

      • Kumar Sree

        Hallo Michael,
        I have experience on Forex & Binary on many years with breaks. Earlier, few of the binary brokers account managers made my account balance to zero and from those lessons I have learned some knowledge at least to avoid taking blunder tradings. Now I am much confident to deal Forex with profit rather than binary but unfortunately I am not in a position for the margin deposit requirement. Therefore, for time-being looking for a good binary platform with no-touch option (i have good successful rate on this option) to earn some money for ‘forex’. My plan is to do trade @USD10/- to 25/-, 20-30 trades in a day. The challenge is to find a good broker!!!

  • Kumar Sree

    Hi,
    BDSwiss have only touch option (to say YES only). I am looking for option will touch or no option. Can you recommend any? Optionfair.com have the platform what I am looking for, but traders from my region is not acceptable as per their new regulation.

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