Trading Option Types
At Option Bit, you have a choice of 5 trading options. These are:
Digital option: This is the most popular with traders and it is also the most widely known. Here, traders are expected to predict the rise or fall of an asset before the predetermined expiry period comes to an end. The ‘call’ option is where a trader determines before the expiry time that the price of the asset being traded will rise above the rate at which the trade was entered into. The ‘put’ option refers to where you will determine that the price of your chosen asset will have fallen before the expiry of the predetermined time. Using the digital option and you are trading currencies; you will have the choice to use the ‘Extend’ and ‘Close’ trading tools. These are not in use when you trade indices, stocks, and commodities.
One touch option: Unlike the digital option, Touch options are considered special and quite unlike the ordinary. Here, you will make profits only when the price of your asset will surpass a predetermined level or barrier. You stand to lose your entire invested amount in that trade if it fails to hit the barrier. Here you can predict either way. A touch-up refers to when you gain profits by the asset hitting or surpassing the specified barrier on the higher side. You make profits on a Touch-down when the price falls below or equals the specified barrier.
Touch/No touch options: This option is an extension of the one Touch. The difference here is that profits will be made the moment the price will hit the specified barrier. This will be for the traded barrier; either the upper or the lower. The implication here is that the profits can be made before the expiry of the predetermined period. Losses will be made if the price does not reach the predetermined barrier before expiry.
Range options: Here, you will determine a range within which the price of your asset will reach before the expiry of the set period. You will be provided with three different rates: the market rate (the status quo of the asset at the time of trading), a lower rate and a higher rate. An ‘Out-range’ option is when you predict the price to outside the charted upper and lower rates. An ‘In-range’ option is where you predict the price to fall within the set range. This option is usually traded when there are expected changes in prices due to an upcoming event or when there is an instability that causes drastic movements in the prices.
Turbo options: These are quite like the Digital options only that their expiry times are quite short. They range from 1 minute, 2 minutes or 3 minutes. If you are the sort of trader who prefers higher profits to a consistent hit-rate, this is the option for you.