Binary Options One-Touch

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Binary options are well-known for providing traders and investors with a much more simplistic approach to financial markets. However, as traders and investors start to gain more experience with binary options, they might be inclined to branch out to more advanced strategies and techniques.

One of these more advanced strategies is known as one-touch binary options, these carry more risk than “put” and “call” trades, but the pay-off is much higher. Throughout this article we’ll tell you exactly what a one-touch binary option is, how you can increase your chance of success, and we’ll even provide you with an example of a one-touch binary option trade.

What Is a One-Touch Binary Option?

One-touch binary options are very similar to call and put options. However, instead of speculating whether the value of a particular stock or currency pair will be of greater or lesser value after a given time period, you’ll be speculating the specific price that the stock or currency pair might reach.

As mentioned above, the main differences between one-touch binary options and put/call options are the amount of risk involved, and the amount of return you can get on your investment. In order to be successful with one-touch binary options, it’s crucial that you understand how to minimize risk.

How to Increase Your Chance of Success

stiftOne-touch binary options are significantly more difficult than standard binary options; you don’t just need to determine whether price will increase or decrease, you also need to determine the price that the particular stock or currency pair will increase or decrease to.

With that being said, analysis is a crucial element of success when it comes to one-touch binary options. The more analysis you are willing to do, the greater your chances will be. Always remember to take all three types of analysis into consideration before making a trade: technical analysis, fundamental analysis, and sentiment analysis.

You’ll find that an economic calendar will be a priceless asset for your trading/investing endeavours. An economic calendar will tell you when major economic reports are coming out, such as the following: unemployment rates, consumer confidence, GDP, ISM manufacturing, and non-farm payrolls.

An Example of a One-Touch Binary Option Trade

mobileIn order for a one-touch binary option trade to be successful, the price of the particular stock or currency pair needs to reach a value that you have pre-determined.

So for example, if the USD/JPY currency pair is currently trading at 120.20, and you believe that the price will increase to 120.60, you would initiate a one-touch trade. The price of USD/JPY would then have to touch 120.60—hence the name—before or at the maturity of the trade.

If the USD/JPY currency pair does not touch 120.60, your one-touch trade will expire “out of the money”, meaning that you will lose your initial investment.

Everything You Need to Know About One-Touch Binary Options

As you can see, one-touch binary options are quite different from the standard binary options that most traders and investors are accustomed to. One-touch options are reserved for the more advanced trader as they carry more risk.

Hopefully you now have a much better idea of how to approach this exotic type of binary option. Make sure to read the “How to Increase Your Chance of Success” section very careful—this advice is essential if you want to minimize your risk as much as possible.