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.
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:
1. Choose the underlying asset you wish to invest in. You can choose from a variety of stocks, indices, commodities and currency pairs or Forex.
2. Select the expiry of the trade and then decide which type of option to purchase. That is, either CALL or PUT.
3. Decide on the amount you want to invest in the trade
These are the basics of trading. When you are trading, it is best to keep informed regarding the market and the events that cause the markets to fluctuate. You can easily find this information through various financial sources. With this knowledge, you are able to make educated decisions regarding the direction that the price of an asset will move in the near future and in this way, you can reduce the risk of trading while increasing the rewards.
Another advantage of trading is that you know even before you make a trade how much you stand to win or lose. That is, the rate of return or the payout rate is preset or predefined on the trading platform.
ONE TOUCH TRADE
The One Touch trade option is the highest rewarding trade option since the rate of return on this type of option can be as high as 400%. The One Touch trade option is a new type of investing structure that takes out a lot of the guesswork and simplifies your choices while paying out big rewards.
The One Touch trade option is similar to the standard trade option except that here, you need to forecast if any asset will ‘touch’ or reach the set strike price or goal rate at the expiry of the trade. In the event that you forecast correctly, and the price of the asset does touch the goal rate at the time of termination, your trade will end in-the-money and you will be paid out the predetermined payout, generally somewhere between 250-400%.
This type of touch option is an excellent choice for traders who are convinced that the price of the selected asset will definitely surpass a particular level in the future but who are uncertain regarding the durability of this higher price. Another advantage of the One Touch trade option is that they can be purchased on the weekends when the markets are closed giving traders access to trading 7 days a week. While One Touch options provide a trader with the opportunity to make a lot of money, this trade option is a bit riskier than the typical trade option.
Let us look at an example:
With the One Touch trade option, you simply need to decide if the goal rate offered on the site will be touched or not during the life of the trade. For example, if the EUR/USD currency pair closes at 1.37230 on Friday, then Unioption platform will offer you two options. That is, one will be for a Call option meaning that the EUR/USD will rise and reach 1.38620 at the end of the following week, and the other will be for a Put option meaning the EUR/USD will fall to 1.33330 at the end of the following week. All you need to do is to select the direction that you think the asset will move, enter your investment amount and then wait for the trade to expire. If your prediction is correct, you will be paid out a big return.
60 SECONDS TRADING
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.
LADDER TRADE OPTION
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.