People all around the world, as well as South Africa, keep looking for potentially profitable ventures they could invest in and improve their financial circumstances.
Those opportunities are more abundant today than ever before in no small measure because of the technology we have at our disposal in the 21st century.
The Internet, probably the greatest invention in the history of mankind gave rise to many profitable ventures which would not be possible otherwise.
Binary options trading belongs to that group.
For interested South Africans willing to invest their funds to achieve even more gains, binary options trading presents an attractive prospect. Especially when those are compared to some other forms of trading.
The attraction of binary options is combined out of many different segments, in fact, it can be viewed and pie chart with each piece presenting a unique opportunity.
While selecting the right binary broker and knowing as much as possible about the market and underlying assets is important, knowing about what binary options can be traded is just as essential.
In this binary guide, we will provide prospective South Africans with information what binary options can be traded and which distinctive features each has.
What Binary Options Can be Traded in South Africa?
There are several different binary options which can be traded, however, South African have to keep in mind that the options we will state here are those most commonly found with binary brokers. They also have to be aware that they will not find all these options with a single broker.
In fact, it is very likely they will have to select more than one binary broker for trading if they like various binary options.
This can also be a trading strategy since this way South African traders may not only secure better profits but can also test various options and brokers.
Types of Binary Options – South Africa
High/Low is probably among most recognisable and most popular binary options that can be traded and found on most trading platforms.
This option is also very popular among newbie binary options traders due to its simplicity.
Those South Africans who opt for the High/Low option simply need to make an educated guess about the direction of the underlying asset price.
Accordingly, they will either select a Put option (down) or a Call option (up).
The Touch Option is another one South Africans can use for trading. The varieties of this option also include No Touch and One Touch and here the rates are predefined.
In this type of binary options traders do not have to predict whether the price of the underlying asset will rise or fall, but rather they have to estimate if the set level will be reached on not.
Hence the “no touch” or “one touch” principle of this option.
Another binary option which can be found on numerous binary options trading platform is the 60 Seconds option. This is another one of binary options frequently traded because of the speed and potentially high profits.
Traders get results in one minute and for those who monitor the market frequently and are quick to respond to sudden market movements, this might be a great solution.
Boundary options, otherwise known as tunnel or range option, tends to be similar to the touch option.
However, there are two defined levels to bear in mind here. These are the upper and the lower levels. What t trader needs is an underlying asset to stay inside the boundary in order to receive a payout.
This method would work best when trading in a stable market when trading in the boundaries.
Alternatively, it can be used in a volatile market when the trading out of the boundaries.
Pairs Option is yet another very popular and often used among binary options that can be traded. The main focus of Pairs Options is the comparative performance of two different underlying assets.
The South African traders who select this type of binary option have to make an educated guess as to which underlying asset in the pair will accomplish more with a comparison to the other.
So as evident, the selection in by no means small or narrow. Actually, what binary options can be traded alongside the ones already mentioned?
There are two more types which are relatively frequent and those include the Ladder Options and Long Term Options.
With Ladder Options, traders have to be prepared to deal with three distinct underlying asset prices as well as expiry times.
Traders get so select both the expiry times and prices which are then arranged to look like ladders.
The focus is for the underlying asset to go up the ladder and hit set prices in the predetermined expiry times.
A stark opposite to 60 second option, Long Term Options as indicated by the name, are traded for a much longer period of time. With some brokers that can me up to 150 days.
Just like short-term options are suitable for a certain type o trader so is the case with Long Term option.
On the plus side, this option is less risky but the profits are not as attractive. Accordingly, traders have to be prepared to be patient to get results.
As evidenced, there are no right or wrong when it comes to what binary options can be traded.
There is only variety and South African traders have to know and understand what each of these options brings to the table, they have to understand the risks and, ultimately, they have to know what suits them the best.
One approach to finding out which binary option type is the right for them is to make several different deposits with binary options brokers which cover most of the mentioned binary options.
Slowly putting each and every one to the test to understand which works best for them can be a way to achieving better results and improving payouts.