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While the traditional call/put option is the mainstay of binary options trading, most brokers have now realised the potential of offering a wider range of options to suit the preferences of all types of investor. One Touch options, sometimes called Touch options, are a way of trading in which the investor earns a profit if they successfully predict that their chosen asset's price will either rise above or drop below a predefined level at any point before the trade's expiry point is reached. The price does not need to maintain a particular level for any length of time and the asset's final price is also irrelevant in the case of One Touch options - all that matters is that the asset's price has touched the predefined level at some point during its lifespan.
When To Choose One Touch Options
One Touch options is a good choice for more experienced investors who have a good idea about the direction in which an asset's price is likely to go and who are looking for more excitement and challenge in their investment portfolio. This type of investment can yield good profits with payouts of around 300% to 500% on an in the money trade. Trades automatically come to an end once the asset's price touches the predefined level, so there is no need to wait until the end of the expiry period before you receive your profits into your trading account. As this option type requires some experience in the markets and some knowledge of how to use analytical tools in order to predict the chance of the chosen asset's price reaching the predefined level, it is not a good choice of option for novices.
How To Trade With One Touch Options
When trading with One Touch Options, first you must select an asset which you think is likely to reach the rate predefined by the broker. You must then choose whether the asset price is likely to rise above or drop below this predefined level. The final step is choosing the amount of investment you wish to make.
Which Assets Are Available For One Touch Options Trading?
One Touch Option trading is generally available on all four asset types: commodities, stocks, forex pairs and indices. Usually, however, One Touch Options is favoured by those who prefer forex currency trading due to the volatility of the currency markets.