One Touch Binary Options Strategy
Binary options, by nature, are more of financial betting. These are high risk- high gain financial instruments, where either one earns a profit or does not earn anything at all. Binary options come in many varieties, durations, and styles. One touch binary option, among these, is an exotic variety that can last for a week or hour or minutes, and gets automatically executed. It is one directional in nature.
“One directional” implies that a trader starts with a price of an underlying financial asset, and bets whether that price will touch a predetermined level, say within a week. This predetermined level of price is known as the trigger value. If at any time during the trading week, the price reaches that level, the option gets executed and the trader receives the profit. With a solid one touch binary options strategy, a trader can make more than 100% profit.
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In fact, these options are usually the ones that provide the highest payoffs. This particular characteristic, where the trader does not have to wait till the expiration of the option to exercise it, makes one touch options an American style of options. If, on the other hand, the price does not reach this predetermined level, there is no earning at all. This is why one touch binary option strategy is gaining so much in popularity nowadays.
How does One Touch Binary Options Strategy Work?
To understand how one makes profit in one touch binary options, one must understand that although it is related to the price of the underlying asset, the difference between this price and investment is not the profit. A trader can invest a particular amount in the betting process. Depending on the trading platform, the rate of potential profit may vary. Since these are high risk options, many trading platforms or broker offer profit rates like 400% or more or less.
So, if a trader has invested a $100, with a profit rate of 400% he may earn a total of $500 in case the betting is a success. For example, if at the time of buying the option the trader betted on the price of an asset to increase from $X to $Y within a week’s time period. If the price does increase to $Y in that week, he will make a 400% profit on his investment, in this case $100. This profit percentage is not calculated on the price of the asset. Therefore, one stop binary options strategy will involve predicting this price movement reliably and correctly. The following section discusses what are required to develop such a strategy.
How to Develop One Touch Binary Options Strategy?
Trading of one touch binary options strategy depends on conditions of the market, the asset, and volatility of the same. Many new traders have this misconception that in case of one touch options, one bets on whether the price will change or not. But it is not the case. A trader here bets on whether the price will change to a particular level within a given time frame.
One touch binary options strategy is primarily based on market movements. This means that if the prices of commodities, stocks, foreign currencies or indexes are being stable for a while, then betting on price movement is not logical. When the prices are volatile, it is more ideal situation for trading in one touch binary options.
Like any other binary options, it is important to understand in case of one touch options that there is never a guaranteed success. Therefore, success of one touch binary options strategy may come after a while. Partly, this success depends on trader’s professional discipline.
It is absolutely critical to follow financial news on a daily basis. With that information a trader may be able to predict market movement with greater reliability. Since, one touch options are not high/low or rise/fall; instead touching or not touching a particular value, one touch binary options strategy will require the trader to predict price of the underlying financial asset for a short duration. Because of this, trader must also develop knowledge and insights regarding individual assets, on which he is betting. Another critical aspect, on which the trader must develop reliable expertise, is predicting price volatility, which can be developed over time.
How to Choose Binary Broker?
In order to start trading online you need to open an account with legit and trusted broker. In this field there are numerous non-regulated brokers, most of them with shady reputation.
Still, we are struggling to find the good ones and provide you with their unbiased reviews and customer feedbacks. Trading binary options is not absolutely free of risk but we can help you minimize it.
By researching the market daily and following the financial news, the team at Top10BinaryStrategy is always up to date with the latest alerts, and upcoming launches of trading systems, and brokers.