Before we can look at binary betting strategies in detail, we first need to have a look at the various types of binary bets currently available which are often called exotic bets. The standard type of bet is the simple expiry bet which we looked at earlier, where the binary option contract has a time limit attached, such that the contract expires at a given time and either closes at 100, or 0, against the price quoted. In the case of the forex market, the binary betting companies will generally quote a time of 8pm for their daily binary bets, but it is important to realise that each company will differ in the bets they offer and the timescale for each bet. Binary betting as a whole tends to offer bets based on a shorter time frame, sometimes as short as a few minutes or the next hour, with daily and weekly bets typically the maximum offered.

Now let’s look at some of the more complex binary bets available, which are sometimes called exotic bets, and this is where binary betting and fixed odds betting begin to overlap. As we have already seen, binary betting is based on the fixed odds principle of a limited loss and limited profit, which is identical to that of fixed odds betting, ( do remember however, that in binary betting we always have the option of closing our binary bet early, something which is not available to us in fixed odds). In fixed odds however, there tend to be a wider array of bet types which offer a much broader array of betting strategies, and these are now increasingly becoming available in the binary options world of binary betting. So let’s look at these bet types and then go on to consider some simple binary betting strategies using these types of binary bet.

One touch binary bet

In a one touch bet, a price is set for the instrument to achieve within a certain timescale, and if achieved, then the bet wins and closes at 100. The bet closes irrespective of when this event occurs within the time frame of the contract, so if the bet is specified over a day, and the event occurs in the morning, then the bet closes automatically as soon as the price is touched once.

No touch binary bet

This is the opposite of the one touch bet. In this case a price is set for the instrument, and if this is not touched during the time of the contract, then the bet closes at 100 at expiry. However, if the price is touched during the contract then this bet closes automatically at 0, irrespective of when this occurs ( provided it is within the life of the bet!)

Barrier range or tunnel bet

This bet is often referred to as either the barrier bet or ‘tunnel’ bet, as in this type of binary bet we have tow prices, one above and one below. For the bet to close at 100, neither of these prices must be touched during the life of the binary option, or the bet automatically closes at 0 and the bet loses.

Double touch binary bet

This is the opposite of the barrier or tunnel bet. In this type of bet the price specified above and below must be touched for the bet to win. It is important to realise that both prices must be touched for the bet to win and close at 100, one price will not do I’m afraid!

Up or down bet

An up or down bet, is one that specifies a price target both above and below, and if either of these is reached then the bet closes at 100, provided this is within the trading life of the contract.

No if you start to trade in fixed odds, you will find more examples of exotic bet types, such as doubles, intraday doubles and super doubles, but the ones outlined above are those more commonly available for binary betting at the moment. So what types of binary betting strategies are available to us using these and other binary bet types – let’s take a look at how to develop a binary betting strategy.