Binary options are classified according to species and types. Most often the newcomers have an idea of the options "all or nothing". However, along with this species, there are others that are traded on exchanges rather regularly. This, above all, "no-touch", "asset or nothing", "one-touch" and the so-called "double-no-touch" / "double one touch".
The main types
- Cash-or-nothing . The cost of execution of the option binary cash-or-nothing ( "all or nothing") depends on the traded value of the asset at the time of the contract. The investor decides whether to be a game for a fall ( "put") or increase ( "call"). Next option is purchased and can only wait for the completion of the auction. The implementation forecast provides instant calculation of profits. If you lose the return may be zero or a payment is made the amount of 10-15% of the total investment. The premium depends on what the conditions spelled out in the contract. However, there are also average, the size of which includes one hundred percent return of the invested funds, and from about 70 to 90% of income (ie, 170-190%). You can get 70% of the transaction in such
- Asset-or-nothing. The binary option "asset or nothing" refers to a group of options for different purpose and direction. From the previous species they are distinguished by the fact that the payment is not directly dependent on the rate and the asset value. Many professionals consider that in this case the calculation basis difference does not affect in any way the substance of the transaction. Accordingly, these two types of options are not much different to each other. li>
- One-touch. The main difference between one-touch ( "one-touch") is a "stop price". As an example, the following scenario. Let 5.05.2012 at 15:00 value of a share is equal to the rate of 141 rubles. Under the contract stipulates, for example, an option that is considered to be won if the next 2:00 share value will reach 141 rubles. 16 kopecks. Execution of the forecast period until the completion thereof and the subsequent drop in prices within the same time period does not affect the fact of payment of the premium. If at 16:21 the stock value increases by 16 kopecks, and then drops to 17:00, then this fact is not important. Under the contract, the premium will be paid to the investor. li>
- No-touch. The profit in binary options no-touch ( "no-touch") occurs in the case where, in contrast to the previous species of options not reached the stipulated level of value stocks. If we use the example for the one-touch, then the option no-touch registers that the share price does not reach 141 rubles. 16 kopecks. li>
- Double-one-touch, double-no-touch. The binary option "double one touch" means that the value of the underlying asset at the time of the strike is expected to reach the two thresholds. The positive outcome of the option "double no-touch" is possible in a case where the value of the underlying asset on the contrary does not reach the two thresholds. li>
Some sources indicate that the options put and call are the same species of binary options. However, these options can hardly be marketed as a separate species, since they are the only terms and conditions of the contract and apply to all binary options mentioned above.
Such a terminological confusion was made possible due to the fact that the options in cash-or-nothing often should determine only the direction of cost. Therefore, players are called simplified put and call, reducing to one word full designation "binary option put" and "binary option call".
The types of binary options
In addition to the type of option, distinguish its type, ie, term referring to the ability to strike at a specific time within the context of trading. There are 3 types of options - European, American, and so-called kvaziamerikansky. Last also called Bermuda or Mid.
- The most common type of binary option is an American. Once achieved the desired performance, the buyer is entitled to demand the execution of the option. In this case, you can not wait for the completion of the auction. Investor saves time, starting to acquire a new option, and the profits so, several times per day can be achieved. li>
- A binary option is a European-style differs clearly fixed date of execution, and so the investor is waiting for a strike, ie, maturity date. li>
- Kvaziamerikansky (Mid, Bermuda) option type is considered to be the most unusual. Contract option prescribes such "window". "Window" date can be used to repay the buyer of the option, as deadlines kvaziamerikanskih options bolshie.Chasche quite likely date for repayment of the option determined by the terms of the contract on a monthly basis for a certain number. For example, a binary option is purchased on 1 April 2013 Strike - 6 months. As a rule, "window" date - this is the first day of the next month, provided that it does not account for the output. In this case, the first working day after the exchange of the output becomes the date on which the option is also available. li>