The types of binary options a trader may use include those for short term and long term trading periods. Examples of binary options include asset-or-nothing options, cash-or-nothing options, one-touch, no-touch and double one touch or double no touch options. The asset-or-nothing options is where the trader will have to predict that the price of the asset at the end of a certain period will be higher or lower than a certain price by either buying a call or a put. The money paid in this kind of option is equal to the price of the asset.
With the cash-or-nothing options, the payout is a sum of money agreed upon by both the buyer and seller which is fixed. One-touch options make use of a barrier or target price so that the buyer will get money if the price gets to or moves higher than the barrier while the no-touch option requires that the price does not get to the barrier for you to succeed. The double-one-touch or double-no-touch has a pair of barriers where the price is to hit or not to hit respectively. Short term traders can use the bungee options which is designed for contracts of shorter periods.
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