2options Binary Options Types

The binary options broker, 2options, offers a wide variety of binary options types. Let’s have a look at each of these eight types of binary options in detail.

Binary Options

It is one of the most common types of binary options. It is also known as “High/Low options” or “Up/Down options”. Normally, a trader makes a prediction on whether the price of a financial asset will go up or go down at the time of expiry. The expiry time is 15 minutes. If the trader’s prediction was correct, he will make a profit. If the trader made an incorrect prediction, he will lose the trade.

Binary Options Example:

Let’s take the above figure as an example. A trader predicts that the EUR/USD will go up in the next 15 minutes and he chooses “CALL”. The trader places a trade with $10. The payout for this trade is 70%. The protected amount is $1, which means that the refund rate for this trade is 10%.

If the target price of EUR/USD at the expiry time was higher than its current price (1.06028), the trader will be “in the money” and obtain a return of $10.00 + $10.00 x 70% = $17.00.

If the target price of EUR/USD at the expiry time was lower than its current price, the trader will be “out of the money” and obtain a return of $10.00 x 10% = $1.00.

Pairs

In the Pairs, traders compare two assets and predict which one of the two assets will perform better at the time of expiry. Here, traders need to choose the desired asset, expiry time, and trade amount. The minimum amount for a trade is $10.

Pairs Example:

A trader would like to compare the price of gold with that of silver, so he chooses the asset “GOLD VS SILVER”. The trader opened a $10 trade by predicting that gold will perform better than silver at 06:30. The payout rate for this trade is 70% and the refund rate is 10%.

If the trader made a correct prediction, he will obtain $10.00 + $10.00 x 70% = $17.00.

If the trader made an incorrect prediction, he will obtain $10.00 x 10% = $1.00.

Long Term

In the Long Term, a trader forecasts whether the price of a financial asset will go up or go down at the time of expiry. It is similar to the Binary Options. The main difference between two types of options is the expiry time. For the Long Term, the expiry time ranges from one week to three months.

Long Term Example:

Let’s assume that a trader opened a $10 trade on EUR/USD. The trader chose “CALL” and the expiry time was one week. The payout rate for this trade was 77% and the refund rate was 0%.

If the target price of EUR/USD was higher than its current price (1.06119) in one week, the trader could win and obtain a return: $10.00 + $10.00 x 77% = $17.70.

If the target price of EUR/USD was lower than its current price in one week, the trader could lose. Since the refund rate for this trade was 0%, the trader could obtain a return of $10.00 x 0% = $0.00.

Sixty Seconds

Sixty Seconds is also similar to Binary Options except that the expiry time is much shorter. It includes 30, 60 and 120 seconds. The minimum trade amount is $5.

Sixty Seconds Example:

A trader forecasts that the EUR/USD will go up in 60 seconds. He places a trade with $5. The payout rate is 70% and the refund rate is 0%.

If EUR/USD’s target price was higher than its current level (1.06124) in 60 seconds, the trader could obtain a return: $5.00 + $5.00 x 70% = $8.50.

If EUR/USD’s target price was lower than its current level in 60 seconds, the trader could lose and obtain a return of $0.00.

One Touch

In the One Touch, traders need to predict whether the price of an asset will reach its goal rate before option expiry. The payout rate is usually larger than that of High/Low options.

One Touch Example:

Let’s assume that a trader opened a $50 trade by predicting that the APPLE price (118.065) would reach its goal rate (126.5) before expiry. The payout is 400% and the protected amount is $0.

If the current rate touched the goal rate, the return would be $50 + $50 x 400% = $250.

If the current rate did not touch the goal rate before option expiry, the return would be $0.

Ladder

In the Ladder, there are 5 different price levels. Thus, traders are given more choices. The price levels and payout rates are predetermined by the broker. The minimum amount for a trade is $25.

Ladder Example:

Let’s take the above figure as an example. The current price of EUR/USD is 1.06102.

A trader invested $25 and chose ABOVE at price 1.06153. If the trader made a correct prediction, he will obtain a return of $25.00 + $25.00 x 898.70% = $249.67.

FX/CFD

2options also offers the binary FX/CFD trading. Traders open a trade by choosing the asset, leverage, stop loss / investment, and take profit. It is almost the same as with the traditional forex trading.

2Follow

In the 2Follow, traders are allowed to view and follow top traders’ positions in real time. It is possible to see the rank, trader win amount, success rate, followers, and positions. Here, traders only need to select asset traders and set follow period, investment per trade, and investment limit.

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