Types of Binary Options Brokers

There are several different binary options intermediaries. Here we will explore different leading platforms and explain how their offers differ and why these differences can be important for traders around the world. We divide the main types of platforms into three classifications: flat European style, no border border and no touch / touch.

Straight European Style Agreements

What many people don’t know about binary options brokers is that they sell contracts that are effectively the same as European-style option contracts in terms of retail instrumentation. For those who are only accustomed to American-style proposals, European treaties differ in one key way: the only time the treaty is over is over. Fans of American-style trading will be used more and more to be able to exercise their right to buy or sell basic security at any time. before expiration date. That is, binary documents, unlike normal European contracts, are traded in three main ways: binary documents are much shorter, give a predetermined high return, and the holder never holds a position in the real stock or asset.

Range Boundary or Barrier

Another subset of broader binary options brokers offers limited boundary or barrier-based assets. Although the aforementioned European-style assets are effectively one-sided (stock prices end above or below a predetermined target – or at a hit price), there will be two sides to a limited asset. A trader then has the option to choose whether they prefer to have an internal range (between prices A and B) or an external range (outside the zone between A and B). Otherwise, contracts trade in the same way: high returns, short-term (measured in minutes, hours, or days), and no actual ownership position when they expire.

Touch / Touch

The third type of offer from some binary options brokers is a touch / touch deal. This is a hybrid approach to binary options trading (depending on the brokers used) and may be a derivative of a number of limited agreements or a European one. The downside of this type of offer is that the investor does not have to wait until the expiration date to find out if the asset is worth the money. If a price target (strike price) is hit time the term of the contract (instead of expiration) is accounted for in cash, regardless of any price activity that occurs after the strike price is struck. These assets have been found to be attractive to a number of investors who are more accustomed to American or US option trading. Note that the target prices are slightly higher than what investors can get when looking at one of the types of offers discussed earlier.