This option echoes the tales of the past years from the Forex market, because it uses some of the principles of classical trading. However, this does not prevent it from being a profitable tool, using the latest technologies of option trading along with the classical approaches.
One-Touch option is considered to be a more high-yielding tool and is preferred for trading in small amounts if you intend to make a profit times more, as the “one touch” technology allows to earn 300%-600% of the amount invested with one option.
Condition for receiving profit with such option is touching or overcoming of the price level specified in the option terms. This gave the name to the One-Touch option.
The first feature of this option is the price fix, which is called the stop price.
For example, at 3:00 pm on July 29, 2014, the value of a particular stock is $10. Trading conditions stipulate that the trader makes a profit if the price increases to $11 in a week. You accept or don’t accept such a condition. This is the simplest example of the practice. This is exactly what happens in the reality. At the same time, the brokerage company includes the target rate of the asset price, its type and lifetime to the terms of the option.
Thus, the most important difference that marks One-Touch out from the classic option is the definition of the time of the start and the end of the deal. In this case, the trader is able to buy assets at a time specified by the broker, rather than when desired. This restriction brings some inconvenience and greatly complicates trading. At the same time, significant profits more than compensate for any previously incurred losses. At that, some types of One-Touch options can only be bought on Sunday or Saturday, when all other exchanges do not work, which is a big advantage and allows you trading on the weekend. The asset can be sold from 00:00 am Saturday to 7:00 pm Sunday. You will be able to close your deal in a week – next Friday at 7:30 pm.
There are two variants of forecast in One-Touch options – increase or decrease in asset price in relation to the current level and within the option lifetime. The amount of profit depends directly on the barrier set. Thus, the trader themselves can manage their risks and the amount of profits. At the same time, the broker is able to set their own parameters, and the percentage of profits in this case is fixed. “One touch” trading can be available every day, but in strictly stipulated hours – for example, 7:00 am to 2:00 pm.
Profit with the One-Touch option can be received if the price of the selected asset during the lifetime of the option touched the rate specified in advance.
One-Touch is used in medium-and long-term trading strategies and channel trading.
You can find brokerage companies that provide the most favorable payouts for One-Touch options here.
This kind of option is no less popular than the -Touch, although in fact it is the complete opposite. When trading with such option, the trader makes a profit if the price fails to reach a certain level during the order lifetime. As in the previous option, the size of payments and the price targets are set by the brokerage company in advance. Like with the previous option type, No-Touch option allows the trader to earn from 300 to 600 percent of the amount invested.
Talking about the touch options, it should be noted that there are binary options with Double-no-touch and Double-one-touch technology of execution, where profit depends on the number of touches or failures to touch the target price levels.
As you can see, One-Touch option is quite interesting in its application, which in some ways reminiscent of the traditional approaches to stock trading, but is more profitable and effective tool for trading.
Want to choose a broker that provides the best conditions for trading with One-Touch option? Explore the binary options brokers rating.
One-Touch option is most often used in trading for a breakthrough of price ranges and breakthrough strategies. Profitable ways to use this option type can be found on our website in the strategy section. In addition, there are trading signals for lucrative trading with this option type, which you can choose here.
The technology of One-Touch binary options is also implemented in some types of robots for automated trading. You can learn more about their operation here.