Different types of binary options

Different binary options brokers offer different options. There are a number of different types of options available to trade with. These options include regular classic binary options as well as more exotic types of options. Some brokers even allow you to build your own options. On this page we are going to look at a number of different popular types of binary options. The list of this page does not contain all different types of binary options that are available to trade with.

Binary Options with different maturation

Binary options can have very different maturation periods. Some have a long maturation period while other have very short maturation periods. Binary options can be divided into 3 different groups based on their maturation.

  • (Super) Short options: Short options are options that have a very short maturation. This includes super short options that matures in less than 60 seconds after you purchased them. Some brokers offer options that matures in as little as 10 or 15 seconds. Regular short options usually matures in 15 minutes or less but there are no strict rules for what constitutes a short option. Some brokers include all options that matures in 60 minutes or less among the short options.
  • Regular options: Regular options have a longer maturation time than short options but the maturation time is still rather short. It might be a few hours up to a day or two.
  • Long options: Long options are not very common and most brokers focus primarily on regular and short options. Their selection of longer options is usually a lot smaller. Long options can have maturation times of weeks or sometimes even months.

Different types of options

Classical binary options

The classical binary option is the most commonly trade option. They can be traded in any broker. Classical binary options are also called over/under option. Your goal when trading with these options is to predict whether the underlying asset will be worth more or less than a certain value at the time of maturation. Many brokers uses the value at the time of the purchase as the value the asset needs to be over or under to mature in the money. Other values can however also be used.

These options can have long and short maturities.

In/out options

In/out options is another type of binary options that is rather common and that can be traded in a number of different brokers. Your goal when trading with these options is to predict whether the value of a certain asset will be inside or outside a certain span at the time of the maturation. If you are right you earn money.

One touch options

One touch options are very different from other types of binary options. When trading with other binary options then the value at the time of the maturation is all that matters. This is not the case with one touch options. When you trade with binary option then it is enough that the underlying asset reaches a certain value one time during the maturation for you to earn money. One touch is enough for the option to mature in the money. One touch options can be very profitable if they mature in the money.

No touch options

A no touch option is the opposite of a one touch option. If you buy one of these options then you earn money if the underlying asset never reaches a certain value during the maturation. If the value is touched one time during the maturation then the option will mature outside the money.