Binary Trading Binary Options Types and Structures 2

Question 1

What is a 'Ladder' binary option?

Accepted Answer

An option offering multiple strike price levels, each with its own predetermined payout percentage

Answer

A Ladder binary option presents several strike prices at different levels — the further the target from the current price, the higher the potential payout percentage.

Question 2

In binary options, what is the 'expiry time'?

Accepted Answer

The predetermined moment at which the option's outcome is determined

Answer

The expiry time is the specific future moment when the binary option's outcome is settled — the asset price at that exact instant determines whether the trade wins or loses.

Question 3

What is a 'Double One Touch' binary option?

Accepted Answer

An option that pays out if the price touches either of two target levels before expiry

Answer

A Double One Touch option pays out if the asset price touches either of two predefined price levels (one above, one below the current price) before the option expires.

Question 4

What characterizes a 'Pairs' binary option?

Accepted Answer

Predicting which of two assets will outperform the other within a set time period

Answer

Pairs binary options involve comparing the relative performance of two assets (e.g., Apple vs. Google stock), with the trader predicting which will perform better within the time period.

Question 5

Which statement best describes a '60-Second' binary option?

Accepted Answer

An option with an expiry time of exactly 60 seconds after purchase

Answer

A 60-second binary option expires exactly 60 seconds after being placed, making it the shortest standard binary option expiry available on most trading platforms.

Binary Trading Practice Test

Binary Trading Practice Test

Binary Trading Binary Options Types and Structures 2