Common Bitcoin Binary Options Trading Styles
The use of Bitcoin’s market value in trading binary options has been a key addition to the trading ventures of investors ever since it was introduced to the trading world. When it comes to the technical aspect of trading, traders live for price movements – whether rise or fall. Traders make money by either buying or selling at a certain price, thus volatile assets, such as Bitcoin, are an advantage to them.
Traders engaging in Bitcoin Binary Options have become more popular than never before. Trading platforms have made a way to diversify binary options trading via the creation of different trading styles with the cryptocurrency. These are namely: Call and Put Option, Touch Option, Range (Boundary) Option and Short-term Option (60-seconds, 2-minute etc.)
Call and Put Option
The Call and Put Option or High/Low is the most basic and popular way of trading Bitcoin Binary Options. Basically, all traders have to do is to predict if the value of an asset will be above or below the “exercise price” when the trading time expires.
Placing a trade with the Call and Put Option is easy. Traders should first select to trade with the Bitcoin asset and place a bet. Traders should bet a “Call” option if they predict that the price of Bitcoin’s value will rise, while those who predict that the value of the asset will fall should bet a “Put” Option.
Traders who want to make the highest possible return on an investment should trade with the Touch Option. This allows for returns of up to 100% on a single trade. What’s better is that traders just have to determine whether the value of Bitcoin will “touch” specific and predetermined level or price when the trading time expires.
Traders will be “in-the-money” if their predictions are correct and “out-of-the-money” if their predictions are wrong.
Range (Boundary) Option
Trading Bitcoin Binary Options through the Range Option is all about predicting whether or not an asset will stay within a certain price range when the trading time expires. What’s unique about the Range Option is that traders have the luxury of selecting their desired price ranges.
If traders believe that the price of Bitcoin will be inside their ranges, they should purchase an In-Range Option. However, if they believe that it will be outside, they should purchase the Out-Range Option instead.
With the Short-Term Option, traders just have to determine on whether or not the value of an asset will rise within a short period of time (60 seconds, 2 minutes or any other desired time frame). This is the probably the most complicated yet most exciting trading style available. Its quick characteristic pays out huge amounts of money in a matter of seconds – an ideal attribute for traders.