Binary options brokers offer many different option types to suit the preferences of all kinds of traders, and one of the most commonly found is the No Touch option. A No Touch option is the direct opposite of a One Touch Option. The investor who chooses this option type is trading on the assumption that the price of their selected asset will fail to reach a specific level before the end of the expiry period. Similar to the classic Call/Put option, No Touch options have only two potential outcomes and losses and profits are fixed.
Why Choose No Touch Options?
All binary options traders prefer to invest in different ways, however while the traditional Call/Put option may be a favourite, especially among newcomers to the investment scene, more adventurous trade types are often popular with more experienced and professional investors. One of these exciting option types is the No Touch option, which may be somewhat riskier than the classic High/Low trade, but it can also yield a much greater profit. It is also a common choice among traders who want to combine a range of option types in order to develop a diverse portfolio.
When To Choose No Touch Options
Although payout ratio and preference has a role to play in choosing an option type, professional and experienced traders know that they should select their binary option type based on the current conditions in the financial markets. No Touch options should be selected at a time when the market for the chosen asset is likely to remain within a particularly narrow range of trading - often just after the asset's price has just reached a new low or high. A No Touch trade should only be executed when the trader believes that the trading session will remain quiet. While No Touch options is certainly not the right choice for every investment, it does make a very useful addition to any trader's work box.
Who Offers No Touch Options?
Although No Touch options are a relatively new creation within the financial market, most of the main reputable large brokers now offer their clients the possibility of trading in this way. If you are already signed up with a broker, you should check to see if they offer No Touch options and if they do not, you may want to consider making the switch to a different provider.