MUST READ - Binary Options Brokers Warnings
(+) You must always be careful when trading with binary options brokers, some of them that look to be legit and even are regulated have turned out to be nothing more than boiler rooms and bucket shops.
(+) When first dealing with ANY binary options broker first deposit a SMALL minimum deposit for trading.
(+) Never take ANY bonuses! After making profits from first trade ask for an immediate withdrawal.
(+) If you are called on the phone and asked to make any LARGER deposits ALWAYS say NO.
(+) After making a successful withdrawal of first profitable trade + deposit amount you can start to trust the broker.

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As the competition between brokers becoming stronger, brokers try to innovate and provide more attractive trading methods. These new trading methods could potentially enable traders to be more profitable, or make it easier to decide on trades.

They are gaining popularity fast, as they can fit different market situations, for easier and more flexible trading. For example, when the market is not trending strongly it makes much more sense to trade range options or touch options, rather than the normal call/put.

Among the selection of binary options types you can find, besides the usual Put/Call: Touch/No Touch, Double Touch/Double No Touch and Boundary Options. 

In this tutorial we will look at the 4 types of Binary Options you should definitely know:

1. Call / Put

This type of options is the best known and the easiest to understand. Sometimes also called high/low, up/down.

When you believe that the asset price may rise over a period of time, you choose a Call option. To profit with this type of option, the asset price must rise from the moment you buy the option. For example, if the price of Gold is 1300 and you enter a Call option, it is enough for the price of Gold to rise by even 1 point, to see profit from the option.

A put option is the precise opposite. To profit from a Put option, the asset price must fall from the moment you buy the option. For example, if the price of EURUSD is 1.3400 you enter a Put option, it is enough for the price of EURUSD to fall by even 1 point, to see profit from the option.

If you don’t have previous experience of trading binary options, it’s important that you know the meaning of Call and Put: a Call is a contract where one party agrees in the future to sell their ownership stake in an asset to another party at an agreed price. If the price of the asset increases, the second party profits, because they can buy the asset at a price which is better than the market price. A Put is the opposite - the buyer of the contract profits if the price of the asset falls.

2. Touch / No Touch Options

With this kind of options, you bet whether the buying price of an asset will reach, or “touch,” a price point. If your price point is reached even once, the trade closes instantly and you also receive your anticipated profit. If the price point is not reached, the trade remains open until option expiration time, when it expires at a loss.

With a No Touch option, you bet that the buying price of an asset will not reach a price point. If the price point is reached even once, the trade closes instantly at a loss. However if the market does not reach the price point until the option’s expiration time, you get the predefined profit.

3. Double Touch or Double No Touch

Double Touch options are similar to Touch options, nonetheless there are two price levels, one above and one below the current market price. You profit when price touches one of the points. As soon as price touches one of the points, the option is closed with profit. With double no touch, you profit when price doesn’t touch either points until option expires.

4. Boundary Options

With Boundary Options (or Range Options) for you to profit, price needs to stay inside a range of prices, i.e. between the upper price boundary and the lower price boundary. Because it is more difficult to predict than standard put/call options, there is a higher risk of loss, as well as a higher return, even 300% or more.