Types of Binary Options

1- According to the moment when the liquidation can be carried out
a- European or Expiration
This type of option exists when the predetermined condition is fulfilled or not, only when the chosen term expires and not at any time prior to it.
Example: You buy an option based on the fact that Apple’s stock will rise at the close of the day. If at the end of the day that condition is met you will be creditor to the total of the predetermined sum. Otherwise, your option will be zero.
b- American or Liquidation prior to expiration
This type of binary option is the one that allows its settlement at any time before the expiration term, once the predetermined condition has been fulfilled.
Example: You buy an option based on the criteria that Apple will drop 10 points before 16:00 CET.

If this option falls to that level at any time of the day before the expiration date, the option will be settled immediately and you will earn no matter what happens after the condition has been met.
 2- According to the behavior that the asset must have for the option to generate profits
a- With Single Barrier or One Touch scope

In this type of binary option, it is sufficient for the asset to arrive once, at any time before expiration, at the price predicted by the investor. If this happens the investor will be creditor to the value agreed in advance, otherwise the option will be zero.

b- With Double Barrier Scope or Double One Touch
The investor may set two limits to which it considers that the asset may arrive. If the asset touches any of them, the investor will be creditor to the default value, otherwise the option will be zero. This type of option is quite popular in the forex market and is used by investors who predict sudden changes but do not know exactly in which direction.
c- No Simple Barrier Scope or No Touch
The investor will establish a limit value, which the asset can not reach; if it does, the option will be zero, otherwise the investor will be creditor to the predetermined amount.
d- No Double Barrier Scope, or Range
In this type of binary option, the investor will establish two limit values ​​within which the asset will move without touching them. If it is correct and the asset does not reach either of the two limits, the investor will receive the value of the option determined in advance;otherwise the option will be zero.
3- According to the condition that must be given for the option to generate profits
a- All or Nothing, Cash or Nothing
This is the basic type of binary options, in which the option will generate profits to the investor if the condition of rise or fall predicted at the time of purchase is met. If this condition is not given, the investor will not receive anything.
b- Assignment of Assets or Nothing or Asset or Nothing
This classification is very similar to the All or Nothing type and is valid only for Call purchase binary options. In these, the seller of the option will not pay anything if the underlying value is below the exercise price and will pay the price of the agreed-upon asset if its price is greater than that of the year.
c- At the Money
In this type of options, the holder of the same, will receive the default value if at the expiration of the value of the asset, it is equal to the exercise price, that is, if it is in “at the money”. If this condition is not met, the investor will not receive anything.

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