Classic binary option (Standard option, High/Low, Call/Put, Above/Below) is the most popular type of the binary options. It comprises all essence of the binary trading. In addition, it is the simplest type of binary option. A trader chooses an underlying asset for trading and a term of the contract’s expiration. After this, he can buy the CALL option, if thinks that in the end (when the contract expires) price of the chosen asset will be higher than the initial price, or the PUT option, if thinks that in the end the price will be lower than the price at the moment of the binary option’s buying.
Example of standard binary option
On the picture below you can see the classic binary option on a platform of the binary options’ broker 24option:
The currency pair EUR/USD is chosen as an underlying asset, its’ quote equals to 1.32811. A trader’s goal is to forecast the price at the moment of the term’s expiration. To buy an option, it is necessary to make only few steps. Underlying asset has been already chosen. It is needed to specify the time of the option expiration, choose direction CALL or PUT, and specify the investment’s amount. In our example term of the option’s completion will expire in more than 8 minutes and the specified for an investment amount equals to $50. System Dragon Options calculates the profit in 76% automatically and specifies the amount of $85. All a trader has to do after this is to press Enter and the needed option will be bought.
On the platform’s right part there is a price movement chart. Unfortunately, platforms of all binary options brokers are inappropriate for the complex technical analysis. To solve the situation, a trader needs to use the external sources, such as our website. We provide traders with the Live binary options charts for conduction of calculations of the chart’s and indicator’s analysis.
Work with the classic binary options is good for beginners in trading too. The benefits of this option’s type are in its simplicity and possibility to use greater amount of different binary options strategies that were created and honed for this type of options. However, more experienced and even professional traders also opt for the digital binary options type.
In the following articles we will consider more complex binary options types, but all of them have a classic binary options principle in their basis. Eventually, multiple practices with this option will propel a trader to the highest form of mastership in the binary options trading.