Types of options
If you are looking for an answer to the question what types of options are available, read this review. In it, we will consider the main types of options available for trading to traders who opened an account with brokers. Find out what types of options are available on brokerage platforms.
Popular types of options
Calls and puts are the two most popular types of options. On the basis of styles, there are two types of options, one is American and other is European style. Stock traded options and the OTC market options are opposite to each other. As OTC market options are less accessible to general people. Consider the main types of options offered by brokers for traders.
Standard options
Types standard options also known as classic, digital or high/low is the most popular platform among brokers. It gives you the opportunity to select your desired asset and predict whether the classic option will rise or fall within a set period of time. So the traders get the fixed payout by the time the trade expires.
They are recognized with their featured chart and "call" and "put" buttons. You can also view such parameters in multiple views for all trades from one window.
Long Term
In comparison to other types of options, Long Term options lies in less degree of risk. This gives you the opportunity to trade with good analysis of asset events over a longer period of time. It means that price of the chosen asset has more time to reach the value you predicted.
The trading process for both classic and Long Term option is the same. You choose an asset, an expiration date and predict whether the price will rise or fall.
One Touch
The option type gives the trader a very high payout based on the price of the underlying asset reaching the specified rate before expiration. Also, they are tradable at weekends and holidays. In One Touch options at any time the asset reaches or surpasses the predetermined price level, then the option will be in-the-money and trader will receive the payout even if the option has not yet expired.
60 seconds
Types 60 seconds options are the fastest way to place a trade and earn profit. The trader selects an asset, sets the expiry time of the deal 30, 60 and 120 seconds and the direction of the future change in value (higher or lower). Also, It allows traders to hedge, place multiple positions and take advantage of volatility time of the market.
Ladder
This ladder option allows traders with multiple prediction on an asset and expiration. It gives you more choice and flexibility while analyzing the market. On the other hand, traders have predetermined target levels for which they prognosticate whether the target will be accomplished by the expiration or not. It gives traders the opportunity to benefit from higher payout rates within a short period of time rather than standard options.
Pairs
It allows traders to compare and predict between two alternative assets. With types pairs, a trader predicts how strong or weak one asset will be compared to another. For example, a trader can predict the performance of gold compared to silver to see which of them will rise in price more by expiration. So, if the trader believes that in gold vs. silver the price of gold will raise more at expiry then he/she would choose a "call" option and if the trader believes that silver will raise more by expiry then he/she would choose a "put" option.
See also:
What is options
Best options assets
Options platforms
Benefits of options
How to trade on options