OptionBit Binary Options Types

On the OptionBit binary options trading platform, there are four types of binary options available for traders to trade with. It includes Digital Options, Turbo Options, Touch Options, and Range Options. Let’s take a closer look and learn a little bit more about the trading rules of these four binary options types.

Digital Options

The Digital Options are also named as “High/Low Options” or “Up/Down Options”. They are the most popular form of binary options trading. When a trader carry out Digital Options trading, he makes a prediction on whether the price of a financial asset will go up or go down at the time of expiration. If the trader thinks that the price will go up, he needs to choose “Call”. If the trader forecast that the price will go down, he needs to choose “Put”. The expiration times vary and they are usually pre-defined and displayed on the trading platform. If a correct prediction was made, the trader can make a profit; otherwise, he will lose his initial investment.

In this type of binary options, traders can use the “Close” and “Extend” features to manage risks when they trade currencies. It should be noted that these two features cannot be used in trading stocks, commodities and indices. By using the “Close” feature, traders can close a trade before the expiration time. The “Extend” feature allows traders to postpone a trade until the next expiration time.

Digital Options Example:

Let us assume that a trader opens a $10 position on GBP/USD. The trader thinks that the price of EUR/USD will go up in the next 30 minutes and he chooses “Call”. The payout of the trade is 171%.

If the target rate of GBP/USD at the expiration time was higher than its current rate (1.51232), the trader will make the correct prediction and obtain a return: $10 x 171% = $17.10.

If the target rate of GBP/USD at the expiration time was lower than its current rate, the trader will lose the trade and obtain a return: $10 x 0% = $0.

Turbo Options

In the Turbo Options trading, traders predict whether the price of an asset will increase or decrease at the time of expiration. It is also called “Short Term Options”. The trading rule is similar to the Digital Options. The main different between the two forms of binary options is the expiration time. The expiration time for the Turbo Options trading includes 30 seconds, 45 seconds, 1 minute, 2 minutes and 5 minutes.

Turbo Options Example:

Let’s assume that a trader forecasts that the rate of GBP/USD will increase in the next 30 seconds. The trader invests $10 and chooses “Above”. The payout for this trade is 167%.

If the target rate of GBP/USD at the expiration time was higher than its current rate (1.51230), the trader will make the correct prediction and obtain a return: $10 x 167% = $16.70.

If the target rate of GBP/USD at the expiration time was lower than its current rate, the trader will lose the trade and obtain a return: $10 x 0% = $0.

Touch Options

In the Touch Options trading, traders make a prediction on whether the price of a financial asset will touch or surpass the target price. If it touches the goal price, the trade will be in the money. If it doesn’t touch the goal price, the trade will be out of the money. The payout of Touch Options is larger than that of Digital Options.

Touch Options Example:

A trader forecasts that the rate of GBP/USD would touch its target rate. He places a trade with $10. The payout for this trade is 240%.

If the current rate of the asset touched the target rate, the trader made a correct prediction and he would get the return: $10 x 240% = $24.

If the current rate of the asset did not touch the target rate, the trader made an incorrect prediction and he would get the return: $10 x 0% = $0.

Range Options

In the Range Options, traders predict whether the price of an asset will be inside or outside a given range. If the forecast were correct, traders could make a profit; otherwise, they will lose their initial investments.

Range Options Example:

Let us assume that a trader places a $10 trade by predicting that the price of GBP/USD will be “in range”. The payout for this trade is 160%.

If the price of GBP/USD ended “in range”, the trader was correct and he would get a return of $10 x 160% = $16.

If the price of GBP/USD ended “out range”, the trader was incorrect and he would get a return of $10 x 0% = $0.

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