Types of Binary Options
Learn about the most popular binary options, their mechanics, and which strategies they suit best. Click a card to dive into the details.
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High/Low
The most straightforward and widely used binary option. Traders predict whether the asset’s price will be higher or lower than the entry price at expiration.
- Who It’s For: Perfect for beginners due to its simplicity and suitable for experienced traders using trend-based strategies.
- Advantages: Easy to understand, available on all platforms, and adaptable to any timeframe.
- Risks: In low-volatility markets (sideways trends), price fluctuations near the entry point can lead to unpredictable outcomes.
Example: Predicting "High." The price closes above the entry level, resulting in a winning trade.
One Touch
In this option, the broker sets a target price level above or below the current price. Your goal is to predict whether the price will touch that level at least once before expiration. If the price hits the target, you win instantly, regardless of the final price at expiration.
- Who It’s For: Traders focusing on news-driven trading or anticipating strong price movements.
- Advantages: High payouts (up to 200–500%) and instant wins upon touching the target level.
- Risks: Requires high market volatility. In calm markets, the price may never reach the target level.
Example: The price touches the target level, resulting in a winning trade.
Range
Predict whether the price will stay within a specified price corridor ("In") or break out of it ("Out") by expiration. Ideal for trading during low or high volatility periods.
- Who It’s For: Traders skilled at identifying sideways markets or expecting breakouts.
- Advantages: Profitable even in trendless markets with minimal price movement.
- Risks: Accurately defining range boundaries is challenging. Unexpected news can push the price out of the corridor.
Example: Predicting "In." The price stays within the range, resulting in a winning trade.
Turbo
High/Low options with ultra-short expiries, ranging from 30 seconds to 5 minutes. This fast-paced trading demands intense focus and carries high risks due to market noise.
- Who It’s For: Experienced traders using scalping strategies. Not recommended for beginners.
- Advantages: Allows multiple trades in a short time, enabling quick profits.
- Risks: Extremely high. Market noise and random price swings can lead to losses, even with a correct overall prediction.
High Risk, High Speed
Turbo options demand quick decisions and leave no room for errors.
Ladder
A complex yet highly rewarding option. The broker sets multiple price levels ("steps") above and below the current price. Traders predict whether the price will surpass a specific step by expiration. Higher steps offer greater payouts.
- Who It’s For: Advanced traders capable of accurately predicting strong trend movements.
- Advantages: Payouts can exceed 1000%. Partial profits are possible if the price crosses at least one step.
- Risks: Predicting distant levels is challenging and requires significant, sustained price movement.
Supported by Brokers:
Rarely offered. Previously available on IQ Option.
Example: The price crosses multiple "steps" with varying payouts.
Pairs
A unique option where you predict the relative performance of two assets rather than their absolute price movement. For example, you might bet that Apple’s stock will outperform Google’s over a set period.
- Who It’s For: Traders specializing in asset correlations and fundamental analysis of companies or sectors.
- Advantages: Profits possible even in falling markets if one asset declines slower than the other. Mitigates broader market risk.
- Risks: Requires in-depth knowledge of both assets and their influencing factors.
Supported by Brokers:
Rarely available. Check with specific brokers for availability.
Example: Predicting Asset A outperforms Asset B. The prediction is correct.
What Can You Trade? (Underlying Assets)
An underlying asset is the financial instrument you predict the price movement for. Most brokers offer the following categories:
Currency Pairs
EUR/USD, GBP/JPY, etc.
Cryptocurrencies
Bitcoin, Ethereum, etc.
Stocks
Apple, Tesla, Amazon, etc.
Commodities
Gold, Oil, Silver, etc.