First we choose this type of trading One touch binary options and decide on the currency pair or other trading tool we are going to work with. Generally, in most companies you can select the time of the option, which determines the “target price”.
The target price is the instrument price value that the market has to reach at least once before the option expires in order for us to make a profit. For convenience, a horizontal line drawn at the target price is placed on the chart. This allows you to navigate faster by estimating the distance from the current market value to the target.
In short, the algorithm for binary options One touch works as follows
– Selecting an asset
– Expiry time
– Bet amount
– Decision to go up or down on the asset
– Percentage of payout and profit (calculated automatically according to the conditions)
There are two prediction options available – downgrade or upgrade versus the current situation and over the life time of the option.
The profit depends on the barrier set, the trader can adjust the amount of earnings and the risk. If the One touch binary options brokers set these parameters, the profit percentage is fixed.
Specifics of transactions with binary options One touch
If we look at each stage in more detail and try to understand what binary options One touch are, it is worth noting some features:
1) First, the current market situation is analyzed by the time the trading week ends and the financial markets close – from 00:00 on Saturday to 19:00 on Sunday. The main objective is to determine whether the price of binary options One touch can reach that level, and then decide whether or not to make a deal.
2) The execution period is one week (until 19:30 on Friday), during which the system fixes the current price at a certain time. If it reaches or exceeds the specified level, the deposit is increased. Reaching the marker at another time is not taken into account, as well as the price level at the end of the contract.
3) The profit can exceed the size of the initial deposit several times, which depends on the broker of binary options One touch and certain conditions: the minimum and the maximum amount of investment, the percentage of profit.
Also, the specific market situation is taken into account: the bigger the range between the actual price and the touch, the higher the payout of the binary options One touch.
4) If you make an incorrect assumption, you simply lose your investment.
How the binary options One touch strategy works
To begin with binary options One touch strategy, it should be noted that not all brokers are currently available with “Touch” options. For example, Exness broker has this type of options.
First of all we have to go into the binary options trading platform, so we select the option type “Touch”. Then we select the expiry time, at which time the broker will automatically set two levels above and below the current price at a distance of 20 pips.
By pressing the “Buy” button, the trader assumes that during the time of expiry the price will manage to touch the upper level. Correspondingly, when pressing the “Sell” button, the trader supposes that the price will successfully reach the bottom level.
In this case, the longer is the expiration time, the lower is the profit level. For example, with the 1 hour expiry time the profitability of the option is 90%. And if you choose expiry time of 2 hours, then the potential payout drops to 85%. I should also take into account that if you increase the expiry time, the broker automatically increases the distance between the key level and the current price.
If at the expiry of 1 hour the broker sets the levels at a distance of 20 pips, in the case of the expiry of 4 hours, the distance increases to 30 pips.
How to make profit on binary options One Touch strategy
One of the most effective binary options One touch strategy to make money on touch options is to work with the news. We use the economic calendar to determine when important news are due on the market that can significantly affect the quotation of a particular trading One touch binary options, for example EUR/USD.
Not long before the news release, we study the analytics (you can go straight to the brokers), in order to increase our chances. We start trading One touch binary options before the news release, so that the price has time to reach the target value after the important information appears on the market.
Sometimes traders buy two options at the weekend, one with a target price above the market, the other with a value below the market. This is done when very important news are expected to be released in the upcoming week, which will probably “move” the market very strongly in one direction. It is difficult to predict where the price will go, if there is a lot of time left till the eventful day, but this is not required.
It’s enough that the market just moves in either direction and one of two options will close with profit. Let us lose money on the second contract, but it doesn’t matter, because the profit on the profitable deal will be 400%. As you can see, we just have to wait for significant news for the market and take a few minutes over the weekend to work.
You can try “One touch” binary options by registering on the exness.com.
The main advantages and disadvantages of trading One touch binary options
|Pro’s of trading One touch binary options||Con’s of trading One touch binary options|
|Technical analysis methods are more effective when trading One Touch binary options||Brokers inflate the levels the price must reach in order to reduce the likelihood of an event occurring|
|Ability to work at weekends, which is relevant to many market participants who are busy with other activities on weekdays and do not have time to make analytical forecasts||This type of transaction is not available on all platforms|
|Chance of earning 5 times the number of weekdays||Not all assets are traded|
|Minimum time frame with maximum earnings||Expiry time limit (the longer the contract lasts, the more likely it is that the agreed value level will be reached)|
|You don’t need to be able to accurately predict all movements in order to generate income with trading One Touch binary options: it’s enough that an achievement has been recorded at least once||Failure to cancel: if a position has been opened and the trader sees that there is no touch and will not be, it is likely that he cannot do anything and loses the investment without any reimbursement from the broker|
|No fuss, no surprises, no need for urgent decision-making: having done the analysis over the weekend, the trader makes a deal that cannot be stopped, and then simply observes how things develop|
We hope all the information above will help you win One touch binary options.