Today, brokers offer multitude of options with different profits and structures of work. I don't mean timeframes or prices but the essence of the tool. Traditionally, traders work with binary options, but one's wrong if thinks any option is binary. Why am I telling this? Actually, most of you won't even need this, because the majority trade with binary options. Though, you should know about what other option types are. Firstly, it will help to distinguish tools and not to get surprised facing an unknown one on broker's site. Secondly, you need this to be a broad-mined trader and know all terms. Thirdly, some would like to try several option types to choose the most comfortable and suitable.
Many traders can say "binary", but I'll argue as comparing options of completely different types is like comparing an automobile, an aircraft and a train.
Each type has its advantages for matching cases, but we can't say one of them is the best by all parameters. There are some traders, who trade with several types at the same time and gain.
Trading with a broker, trade system is automated. You buy an option, wait until time's up and gain proportionally to the distance the price covered toward you. If the price goes back from you, no profits there, but you are losing only the fixed-price of an option, because it gives you the right of buying/selling, but not an obligation. So, trading with classic options, you have fixed risks, but unlimited profits. If you want to trade with classic options, you'd better do that in strong market movements, because the more significant is the movement, the higher profit you can gain.
Most profitable ones are "One Touch" and "The Limit" - some brokers give up to 700% profits in case of a right forecast. But you mustn't forget classic options have unlimited profits. However, the profit is proportional to forecast's difficulty - it's logic. To guess whether higher or lower the price will be is by far easier than to predict which limit will be overtaken or which point will be touched by the chart. Choose the tool you'll be able to trade profitably with, and don't look for enormous profits - you must work for them.
I think we don't need to mention that different options require different strategies and you must consider that when choosing an algorithm or a tool. However, there are some universal strategies, suiting most option types. One of them is "News-Trading".
A quick tour to option types is done. Hope my article helped you to choose the best option for you, or several ones.
for binary options
|Moving Averages:||Buy (10) Sell (2)|
|Indicators:||Buy (8) Sell (1)|