Predictions for the future can be intoxicating, especially when your predictions turn out to be right on the money, or in binary options speak, “in the money.” A lot of people looking to augment their income and increase finances for a better future have discovered the intoxicating appeal of profiting from binary options trading, where you only need to assume if the value of an asset will go up or down.
While trading binary options sounds elementary enough, there are certain aspects that have the potential to either ruin you or make you. One such aspect is choosing the sort of options you’ll be trading, and one touch binary options have progressively become more popular with a lot of traders involved in commodities and Forex. But just what are one touch options?
A one touch option is classified as an exotic option that lets you make a forecast if the asset will touch a set strike at expiration. In the event that your prediction is accurate and that the asset’s price actually touches the specific strike price at expiration, you will be “in the money.” For some binary options resources, your payout could be as big as 250 to 400 percent. Indeed, this not only means that you as the trader or investor get to set the barriers but with correct forecasts or assumptions, you could also win big with one touch options.
This type of option is recommended for traders who believe that the price of a certain asset (e.g. coffee, gold, oil, or currencies) will go beyond a certain level in the future, and yet they are not entirely sure whether the higher price level will be sustainable. In comparison, the no touch binary options require the underlying asset to not touch the strike price within the expiration.
One touch options, with its potential for 250 to 400 percent payouts, is considered to be quite the profitable trade. Of course, much like any type of trade in the market, whether it’s commodities or currencies, you need to be aware of the parameters that will help you get those big payouts. Reportedly, touch trades are best entered into during periods of high volatility and this type of trade is ideal for longer periods, as most one touch options have an expiry of about a week (i.e. five business days of the week). Without having much regard for such factors, you could put your trades, and your investments, at significant risks.