Since 2008, traders have been relying on binary options trading to provide them with profits. With zero previous experience required, any adult can can profit from this financial instrument. Although many people already realize this, some do not yet grasp the fact that there are now many different ways to earn money within each platform.
The basic binary options trade is the most popular, and with good reason. Requiring only the need to determine price direction for a specific time-frame, this is trading at its most basic. This was the only type of trade within platforms for quite some time, but with thousands of new traders entering the marketplace each day, brokers were pushed to find ways to stand out from the rest. This push resulted in the creation of additional instruments.
The easiest spin-off of the basic trade would be to provide it along with a wider variety of expiry times. Much shorter and longer expiry times began to show up in binary options platforms, offering traders many more choices. Today, expiry times ranging from 30 seconds to an entire year are available. Long gone are the days when traders only had one-hour expiry times to base their analysis on.
As excellent as basic, short-term, and long-term trades are, they are not the best choice for times when asset prices are stable and not moving about very much. This type of price action called for the creation of trade types that can be paired specifically with asset prices that are flat. Boundary, Range, and No Touch trades were the answer to how to allow traders to profit from this type of movement (or lack thereof).
While most binary options trades must run all the way to expiry before the outcome is known, there is one type of trade that can end sooner. This would be One Touch. The objective with this trade is to have the asset price reach a predetermined target price while the option remains open. If this happens, the trade immediately closes and a profit is earned. Within most platforms these options are high yield, which means that they can offer returns of 500% or more.
Pairs are yet another instrument that traders now have access to. These trades group two assets together and ask that the trader choose which of the two that he or she feels will outperform the other. At times, this can be easier than forecasting the upcoming direction of price movement, especially when investor sentiment surrounding one of the two assets is strong. This is a relatively new instrument, but due to its popularity it is now showing up in many platforms.
These are just a few examples of the many ways in which traders can profit from binary options trading. As the popularity of this financial instrument continues to grow, so do the number of available trade types and expiry times within platforms. The number of available assets is also on the rise. Combined, these options provide traders with limitless earnings possibilities.