Binary Options One Touch Trading

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One-Touch Option

What Is a One-Touch Option?

A one-touch option pays a premium to the holder of the option if the spot rate reaches the strike price at any time prior to option expiration.

Key Takeaways

  • A one-touch option pays a premium to the holder of the option if the spot rate reaches the strike price at any time prior to option expiration.
  • One-touch options are usually less expensive than other exotic or binary options like double one-touch, or barrier options.
  • Derivatives, like one-touch options, are not frequently traded by small investors.

Understanding One-Touch Options

One-touch options allow investors to choose the target price, time to expiration, and the premium to be received when the target price is reached. Compared to vanilla calls and puts, one-touch options allow investors to profit from a simplified yes-or-no market forecast. Only two outcomes are possible with a one-touch option if an investor holds the contract all the way through expiration:

  1. The target price is reached and the trader collects the full premium.
  2. The target price is not reached and the trader loses the amount originally paid to open the trade.

Like regular call and put options, most one-touch option trades can be closed before expiration for a profit or a loss depending on how close the underlying market or asset is to the target price.

One-touch options are useful for traders who believe that the price of an underlying market or asset will meet or breach a certain price level in the future, but who are not certain that price level is sustainable. Because a one-touch option has only a yes-or-no outcome by expiration, it is generally less expensive than other exotic or binary options like double one-touch or barrier options.

Derivatives, like one-touch options, are not frequently traded by small investors. There are some trading venues where they are available, but regulators in Europe and the U.S. have often warned investors that they may be overpriced. In many cases it is not possible to take advantage of that mispricing by becoming an option writer or seller. Binary or exotic derivatives are usually traded by institutions who can negotiate with each other for better pricing.

Outcome #1: Price approaches target price

A trader believes the S&P 500 will rise by 5% at some point over the next 90 days, but is not as certain about how long the index will remain at or above that price. The trader pays $45 per contract to buy one-touch options that pay $100 per contract, if the S&P 500 meets or exceeds that target price at any point over the next 90 days. Assume that two weeks later the S&P 500 has risen 2%, which has increased the value of the position because it is more likely that the index will reach that target price. The trader could choose to sell their one-touch option contracts for a profit or continue to hold the trade through expiration.

Outcome #2: Price remains flat or moves away from target price

Assume that a trader originally believed the S&P 500 would rise 5% over the next 90 days and opened a one-touch option trade to profit from his forecast. The trader paid $45 for one-touch option contracts that will pay $100 per contract if the target price is reached. Instead of rising, the index drops 3% on unexpected news a week later, which makes it less likely that the target price would be reached before the options expire. This trader may then decide to either sell the options and close the trade at a lower price for a loss or hold it in the hopes that the market recovers.

Trading With One Touch Binary Options

Whether you are new in binary option trading world, or you are just in the beginning of your personal education as to the different types of binaries, getting to know them all will be very beneficial for you, as well as for your monthly final profit. The reason why it is recommended to get aware of the different binary types is hidden beyond the fact that each of them develops new skills in your trading strategy and gives you additional information for financial trading in general. So instead of begin left behind the advanced traders, better start learning the different binary option types now. And since we are here to provide you with the simplest tips and directions for doing so, we are now about to disclose you the basic information and data for some specific binary type – the one touch binary option. Here it is the easiest and quickest guide for trading with one touch binary option for you!

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  • Binomo
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What Exactly One Touch Binary Option Is?

One touch binary options are common types of extra ordinary (some people call it exotic) binary option. It offers you a payout the moment the price of the chosen by you underlying asset succeeds either to reach, or to pass the predetermined price. The characteristic feature about this type of binary option is that it provides you the chance to settle the position of the barrier, the expiry time and the payout. Similarly to all the binary option types, the one touch binary option trading has two possible final outcomes. In case the value of the one touch option reaches the predetermined value, you will get the full payout and in case the asset value does not reach the pre-determined price, you will not receive anything. There are two main important factors you need to consider, when you trade with one touch binary option. These factors are the volatility and direction of the preferred asset. Think if the price of the assets will rise or fall during the predetermined expiration time. Also, consider to what level the asset might be changed, as well.

What To Be Attentive About In Trading With One Touch Binary Options?

By giving you the following directions, you will know what to be attentive for in trading with one touch binary options. These are simple guides as to the factors that influence on the market with one touch binaries, as well as some strategy tips you should definitely adopt in your own experience with this type of a binary:

  • Never underestimate the importance of selecting a proper one touch binary option broker like 24Option for example. It is essential for you to find a safe, profitable and interactive environment for trading in general, so the experience with one touch binary option is not an exception at all. Look for features like reliability, availability of good customer support services, intuitive trading platform, cool one touch binary option bonuses and of course, trustworthy regulation.
  • Also, never forget to get informed about the market movements. You can do that by reading the latest and hottest Forex news. They will direct you where to invest and on what to invest.
  • Always select an asset according to the market movements and to your personal one touch binary option strategy!
  • In case you find any interesting trading tools that can simplify you one touch binary option trading experience, do not hesitate to use them. Such tools are auto trading software types, signals and even automotive hedging tools.
  • Settle a decent preliminary budget for trading with one touch binary options without exceeding it, because, after all you are on your education stage yet. Once you advance, you can make the investments larger.
  • Enter your investment amounts, when trading with one touch binary option wisely and carefully!

Why Trading With One Touch Binary Options?

Here are the top benefits of the activity with one touch binary options. Read them and consider if this would be your favorite trading experience now!

  • One touch binary option types offer the highest payouts.
  • The value changes in a way to make your final profit larger. This is better than in 60 seconds binary options trading, where, though the risk is lower.
  • One touch binary option always depends on the changes, events and movements from the financial market.

Do not hesitate to try one touch binary options, because we are sure that they will suit your currently primary knowledge as to trading by all means!

One Touch Trading With Binary Today

One Touch Trading With Binary Today

Want more binary options knowledge? Well, you’ve got it. Here at Binary Today 5 we’ve been meaning to give back to the community that supports us so well. With that in mind, we will be providing helpful articles and links to guide you in the right direction. So without further ado, let’s get started.

Today, more and more investors are enjoying binary options trading and with good reason. With binary options trading, investors have many benefits. They get to dictate much of the process of the trade and make decisions for themselves about many of the variables. For instance, if an investor is quite educated about the price of gold or the changes in two currencies in FOREX, they can select to use this stock or commodity as their asset. Then, they can decide what type of investment they want to make. Do they want to say this will be a high/low option, a one touch or no touch option, or a range option? Then, they have to set the amount of time that they want to use for the trade and the amount that they want to invest in the trade.

Benefits of Binary Options Trading

All of these variables allow the binary options trader a great deal of flexibility and choice. And for this reason, and many others, binary options have become hot. One specific area within binary today that has really take off is trading with one touch. There are many reasons for this phenomena, and understanding the one click trade and the use of the one touch binary options can help you to invest more in a more savvy way.

Why One Touch is a Gold Mine

The one touch option means that you’re investing in the idea that the asset you’ve chosen will touch a specific amount in a given time frame. So, for instance, you are predicting that the price of gold will reach the $2000 mark at least once in the following week. You decide on the amount that you want to invest and you know up front how much you risk with the investment. If gold does not hit this price at any time before the time of expiry, then you’ve lost the money. If it does hit this price, even if it only does so briefly, then you’ve made a great deal of money on your investment. And you’ll know the amount that you may make before you even go into the transaction.

Benefits of the One Touch Option

The one touch option is such a hot commodity for many reasons. First of all, its a terrific way to make money on the weekend when so much of the rest of the market is closed. When you are trading with one touch, youre part of the off-hours trading process. Often, the binary today site will advertise that you can invest in the one touch binary options choices on Friday afternoon and see if NASDAQ, for instance, will reach 1820 during the week ahead (or if it will reach 1800 at least one time in the week ahead). You can find yourself making money over the weekend with the one touch binary options, keeping your feet wet over a time period when there is little to invest in.

Other Reasons Trading with One Touch Is Hot

Another obvious benefit of the one touch option is that you stand to make great money with a very small prediction. You might predict that the price of an oil barrel will touch a number that is only slightly higher than the current price. As long as the price hits that mark anytime before the time of expiry youve hit your mark. And, if your price does hit the one touch mark, you dont even have to wait for the time of expiry to receive your payout. The second that that number is touched, youve gained on your investment. For this reason, trading with one touch has become a very appealing means of enjoying binary options.

More Binary Options Fun

The concept with the one touch option also makes it an appealing way to invest. Investors don’t have to fully understand the nuance of their asset in order to predict well. As long as they predict that the binary today trade will hit a number, it doesn’t matter how long it hits that number or remains at that price; it doesn’t matter if it goes far over that price; there is very little that the investor has to focus on except for that one number that they want the binary options to touch. For this reason, its a very easy method to understand for trading with one touch and its an easy concept to digest.

As Easy as a One Click Trade

Similarly, with one touch binary options, the online platforms make it incredibly easy to invest. With the one click trade set up, the investor just needs to select an asset, decide on a number that the asset will touch and set a time frame for the investment. The one click trade choices online make this entire process very easy to navigate and allow the investor to literally use one click to start the trading process. Investors can significantly enhance their earnings during the off-hours of the market with just a one click trade. They start by selecting the option and the number of units he wants to purchase and then clicking on buy with one touch. Its a very easy system with the one click trade and one that even novice investors can use.

The Envy of All with One Touch

The one touch binary options system is one of those well kept secrets. For now, its still a great secret choice that helps investors to enjoy amazing returns on their investment and to do so during off hours when not too much else can be done. The brilliance of the one touch option is that it inst a commitment like some other binary options trading choices are. This means that, as long as the asset hits the number one time before the time of expiry you’ve made your money.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

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