TRADING OPTIONS TYPES

There are many benefits of trading but one of the reasons that this form of online trading gains popularity, is the fact that it is simple and versatile. Anyone can trade. Even if you have no prior experience as well as no understanding of the financial markets, you can trade and make a profit.

Unioption offers its traders a wide selection of unique trade types. The Basic Trade is known as the Up/Down trade option. We also offer Short Term (starting with 30 sec), Long Term, One Touch, Ladder, Forex and Pairs trade options. With such a wide variety, we appeal to a range of different traders as well as different trading styles and requirements.

Let’s take a look at the types of options and the steps needed in order to place a trade. We will begin with the Up/Down Trade.

Up/Down Trade

In trading, there are two types of options, named CALL and PUT. A Call option affirms that the price of the chosen underlying asset will RISE above the strike price within a specified period of time. On the other hand, a Put option affirms that the price of the chosen underlying asset will FALL below the strike price within a specified period of time.

There are also various expiry times you can select in trading. For example, you can choose an asset in which you want to trade and you can then select from various expiry times starting at 15 minutes and even up to one year. The selection of expiry times enables a trader to get a heightened sense of control in the role of returns.

In order to start trading successfully you should follow the next steps:

60 Seconds trading (as already mentioned in its name) trading involves an expiry time of one minute (or 60 seconds). This trading tool is really exciting and fun. It is no doubt that it will keep you at the edge of your seat. 60 Seconds trading can be considered to be an amplified day trading. You can easily earn as much as 85% profit in only 60 seconds if your trade ends ‘in the money’.
60 Seconds trading option is the same as the Up/Down trading option except the expiry time is only one minute.

Let's have a look at 60 Seconds option trading:

1. Choose the asset you would like to invest in (stocks, commodities, indices, currencies).
2. Select the type of the option (either CALL or PUT).
3. Choose the amount you would like to invest.

Now you can watch your 60 seconds count down. Within such a short timeframe you will be able to gain profit. You are welcome to make 60 seconds investments one after another and see your winnings grow. Keep your heart racing and your profits growing with 60 Seconds options.

Unioption presents one of the latest and most advanced ways to trade – Ladder Trading. This type of trading is an easy and powerful tool which provides a possibility to get more out of the market. In the basic Up/Down trade option, you have to select either up or down based on your prediction of which direction the price of the asset will move by the expiry of the trade. You will have a one-time payout for this type of trade and your trading options are limited.

In Ladder trading, your options are five times greater because it provides traders with the ability to take Up and Down options at 5 different prices simultaneously in either direction. That is, a trader can take Put options from whole pips above the current market rate or open an Up option at a price that’s lower than the current rate.

Here’s how it works:

Let's have a look at the example. According to the trading platform, the current market price of the EUR/USD currency pair is 1.3472. In Ladder trading we will offer options both above and below this current rate, two above and two below. It means to you as a trader that now you can choose to take an Above option at the price 1.3583 and it will pay you out around 580% if your prediction is correct. Payouts on the Ladder trade options can reach more than 1000% return making this an excellent way to make profit.

So you might be thinking that it is very unlikely that the price of the currency pair will move up so much by the expiry of the trade and you may be right. There are however many times where the market is anticipating a big move due to some really big news in the market. In these cases, prices of assets can fluctuate suddenly giving you the opportunity to make money.

Let's have a look at how you trade the Ladder trade option:

1. Choose the underlying asset you wish to invest in. Your selection includes currency pairs or Forex such as EUR/USD, AUD/JPY and more.

2. Select the type of option to purchase. That is, either Call or Put and you have five choices in each direction.

3. Choose the amount you wish to invest.

The rate of return is clearly defined on the trading platform for each ‘rung’ of the ladder so you know what you stand to win or lose based on your prediction. Pricing of the asset is also 100% transparent and can always be seen on the trading screen for all strike prices at any time. If you are looking for something a little bit different in trading, then Ladder trading is just for you.

The Pairs trade option is a relatively new way of types that are available today. Unlike the standard Up/Down trade, Pairs trading essentially offers the same basic setup. However, the only major difference is that instead of selecting the direction that the price of an asset will move, you are making a trade based on which asset will outperform the other in the specified time frame. Pairs trading enables you to trade one asset against another to see which one will perform best by the expiry of the trade. For example, Gold vs Oil. If you select the correct asset, you will gain profit.

Many traders prefer trading Pairs because it simplifies the trading process.  That is, either you make the correct prediction about which asset will perform better by the expiry of the trade and profit, or you will predict incorrectly and lose your investment. Pairs trading can be a good place to start if you are new to the world of trading and you are not yet comfortable with predicting the direction that the price of an asset will move.