Binary options can be traded using various trade types. The easiest and most basic trade type is the Up and Down trading type. Also called High/Low or Above/Below trading, this type allows you to earn profits by making correct assumptions of an asset’s movement.
What you can find in binary Up and Down trading
The main characteristic that distinguishes this trade type from others is its simplicity and straightforwardness. There are only two types of options you have to choose from, the CALL and PUT options. With a CALL option, you are assuming that the price value of an asset will rise above the strike price within a given period of time. In contrast, a PUT option means that you are predicting the price value of an asset to fall below the strike price within a given period of time.
In the Up and Down trading type, you can also choose among the various expiry times available. Some of the most common expiration times are 15 minutes, 30 minutes, one hour, intraday, weekly, biweekly, and monthly. With the varying expiry times you can select from, you can have better control over your trades.
How to trade using Up and Down trading
You can start trading binary options in just a few, simple steps. The first one is to choose an underlying asset. If you already have a background with the wide range of assets available for trading, then you can opt for the asset you’re most familiar with. This way, you can already have an idea on how well this asset performs. With adequate research, you’ll be able to make more accurate predictions and gain profits.
Next is to decide on which option you’ll invest in, either PUT or CALL. When you’ve selected an option, you can then set the expiry time. Take note that your goal in Up and Down trading is to predict that the asset you’ve selected will go up (if you chose CALL) or down (if you chose PUT) by the end of the expiration time you’ve set. Lastly, set the amount you would like to invest.