Fixed Price Options
Fixed Price Options is a binary option that can be traded on the TechFinancial platform. Fixed Price Options will be available at the end of August or early September on a selected number of brokers on the TechFinancial platform:
The fixed price options can also be defined in terms of the strike price. Options, as well as futures trading, are known as the contracts which take place between two traders or broker and a trader. There are a number of people who consider this form of trading as being too risky, but with the use of an effective investment measure and strategy together with having a trained broker on your side, you will be able to make a lot of money out of it. Being an investor, you would need to have an idea about all the risks involved in the process.
You should always remember that the stock options empower you to buy as well as sell any underlying asset by using a fixed price. The fixed price options are used for trading out the assets at a specific strike price. There is also an expiration time which is functioning in the trading process. In simple, any of the call options which make use of a fixed price can be used to carry out the trading process.
No Touch Options
No-Touch Options are one of the most popular binary options used in the trading process. However, No-Touch options are considered to be somewhat very risky as traders will have to predict or guess what is going to happen in the market during a specific time frame. This options type is extremely useful for traders who believe that the underlying asset price will increase over the range-bound during a specific time frame as they will end up making a lot of money if they are right. Also, the profits that are associated with no-touch options will be larger if the time frame is long but this doesn't mean that the risk isn't greater as well.
The most common type of these binary options is double No-touch Options. This is an exotic type of options that gives the investors a payout agreed on previously if the underlying asset’s price surpasses the two barrier levels. The investors and traders who decide to use this type of options will first pay their broker a specific premium and then will have the right to select the barrier position, expiration time, payout that should be received in case the price doesn't breach or reach either barrier. Using double no-touch options, the only loss investor will suffer from is the setting up cost they will pay for this option and this is considered to be very normal in the trading process. Keep in mind that, in every trading process, there are losses and wins. One-touch options are becoming very popular among traders, especially in Forex markets. Here is an example of how they can be used:
Let’s say that the USD/EUR is currently at a rate of 1.20 and you believe that it won’t change or increase over the next 20 days. You can take advantage of this situation by using double no-touch options with 1.19 and 1.22 barriers as this will enable you to capitalize and make a lot of profit from this outlook. Through the options' life, if the underlying asset’s rate doesn't reach any of the barrier levels, the trader will end up receiving a payout that is fixed. If any of barrier levels is reached, then this means that no touch options will mature worthless. As you can see, the trader now has the chance to make a lot of profits whether the rate increases, decreases, or even fail to increase beyond these two barriers.
One Touch Options
One Touch options are trades where a win takes place if the price touches a certain point. When trading these options, the trader is betting that either a resistance point or a support point will be touched by the price, within a certain time frame.
Using One Touch options, traders will have to forecast if the asset they want to invest in will touch set strike during its expiration. If the trader was able to forecast correctly and the actual asset price touches the strike price during termination time, the trader will receive a determined payout, usually between 250-400%.
This type of touch options is definitely useful for traders who are convinced that the cost associated with underlying resources and assets will surpass particular levels later on. The best thing about this is that you will receive very high returns if your guess ended up being right. This is definitely better than other options that only allow you to profit a fixed return no matter how much you invest or whether you were right or not.