The One Touch binary options instrument is an excellent option for those who wish to pursue the largest profits. The high-yield touch trades offer return rates of up to 1,000% per trade in some platforms. In conjunction with these high returns comes high risk. This is exactly why the One Touch instrument is not suitable for all traders. It is vital to have a good grip on how to carry out technical and fundamental analysis. Additionally, you need to be comfortable with accepting a higher level of financial risk.
Still willing to use this instrument after reading the aforementioned risk warning? Excellent! Let’s begin by taking into consideration the best time to use this type of trade. If at all possible, you’ll reserve use of this instrument for times during wherein a clear price trend is occurring and general market conditions are volatile enough to allow for large price movements. The price of the chosen asset has to be moving in order for the position to stand any chance of finishing in the money.
In order to generate a profit from a One Touch trade, the price of your chosen asset much reach or exceed a pre-determined target price while the trade remains open (or live). If the expiration time period ends and this has not happened, the investment amount is lost. Higher risk levels enter the picture whenever the target price which is spaced far apart from the entry (or strike) price. Touch style binary options trades can be used along with either climbing or falling prices.
An example of such a trade would be as follows:
If Apple is preparing to release their most recent earnings report, you would need to determine the numbers expected by the analysts. Making the assumption that the actual numbers were much better than anticipated, a significant price boost would be quite likely. In keeping with this information, you could enter into a trade using a prediction of a price increase. The target price of course has to be taken into consideration. Even with substantial movement, if the target is far from the entry level, this risk remains high.
The first step to trade execution is will be to identify an asset that is on the move. A quick examination of a price chart should point out solid options. Next, look at the key parameters. These include things like the target price, offered return rate, and available expiry times. You would enter into your position based upon what the price charts are showing. This need not be overly complex. In most cases, you will trade with the trend, either up or down. Most binary brokers set the target price, so there likely will not be any flexibility in this area. However, it is you that makes the decision of whether to trade or not.
Some brokers One Touch investments throughout the week, while others only offer them on the weekend. Weekend trades almost always carry an expiration time of one week from the time the option opens, but do verify this with your chosen broker. While high-yield trades do require some patience, one week is really a suitable amount of time period for allowing the traded asset to arrive at or exceed the target price. If and when it does, the profits earned from using this binary options instrument will be substantial.