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One Touch Binary Options
One touch options are some of the most popular vehicles for binary trading. This option derives its popularity from the amazing profits a successful trade can bring. Depending on the broker, a trade “in the money” can bring a return of up to 600%.
The concept behind one touch options builds upon the already simple yes/no proposition of ordinary binary options. As the trader, you interpret the market to determine in which direction the price of an underlying asset will trend. What one type option allows you to do is make a trade on whether or not the underlying asset will reach a specific price. The reason why its call one touch is because it’s enough that the asset touches your estimated price once for you to gain an incredible return on your initial trade. The only caveat is that the asset price needs to touch the target price before the option expires.
How does one touch binary options work?
Below is a quick 4 step one touch options example of how you can increase your returns.
- Let’s say you’ve been following EURUSD, and the current price for the currency pair is set at 1.1300.
- With your broker of choice, you chose to trade one touch options and the timeframe. For the sake of this example, let’s say you choose a one hour timeframe.
- At this point the broker usually provides two options to trade – a higher price and a lower price. In this example, the broker provides a higher price of 1.1380 and a lower price of 1.1220. All you need is predict the assets direction.
- If, based on your analysis, you think the asset will go long and reach 1.1380, you put your money down.
One of the great benefits of one touch options is that it doesn’t matter when the asset will reach the target price just as long as it happens within the timeframe you choose.
When to use one touch binary options?
The best time to use one touch binary options is when the market is volatile, which the markets usually are during the opening hours of the US and European markets. In the first two hours of each opening there is a great volume of trades being made. Currencies are directly affected by this dynamic exchange on the stock market. For every market state (i.e. level of volatility) there is the right strategy and trading method. A successful trader will know how to recognize when the market is calm and when the calm belies market preparation for a move on the horizon. For instance, in a low volatility market it is best to trade with boundary options, when a winning position will be between predefined price range. For a volatile market, one touch binary options are the perfect choice.
Another great time to take advantage of one touch options is when major world events occur. These events are generally scheduled, and their importance is most often well known. Just before the event is announced or the results tallied, you may place your option – all you need to do is predict the direction. You can even win purely as a result of an anxious market anticipating volatility. Here is a recommended site that lists all the upcoming events – just be sure to adjust for your time zone.
One Touch Trading Strategies
Below are 3 examples of one touch trading strategies. It’s best that you choose one strategy that you feel most comfortable with.
One of the best strategies to use with touch options is to trade just before an important and high impact event. In most cases, the market will have a sharp and volatile move at the event time. Even if the result of announcement is pretty much as expected, the volatility and anxiety of the market will move the asset’s price and increase your chances of winning.
When you using the one touch event strategy, I would recommend using a 1 hour time frame when the event occurs within the chosen hour.
One example of a high impact event is the ‘ADP Non-Farm Employment Change’ or rate changes that affect the US and EU markets.
This strategy should be reserved for experienced traders who are versed in managing their binary options account. The only indicator you need is bollinger bands with the following parameters:
Period – 20; Deviation – 2
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The set-up for this strategy is a narrowing down of bands, shrinking the price range. The recommended trading hours are during the European and US markets.
Take action once you notice a breakout from the narrowing bands.
Direction of the Trade:
Before you employ this strategy, you need to make sure for each direction, you can at least double your initial investment. Now comes the tricky part – you place an option in both directions, Put and Call. The asset has broken out of the bands and it should make a sharp and volatile move.
Before you take any action you should confirm the winning rate are above 200% for each option (the winning rates will change with different brokers.) The strategy is risky because in some cases you might lose both trades, but it’s enough that you win one trade and lose the other so in total your trade expires “in the money”.
I already wrote about this great strategy which I use occasionally. Is is a great fit for use with one touch binary options.
The rules are simple: basically this strategy is designed for GBPUSD only. The pound dollar pair, is in fact one of the most volatile and technical currencies.
Trading Time Frame:
It depends on the one touch offer, I prefer and recommend to trade on 1 hour time frames for the one touch, but you can also be successful on 15 min timeframe.
7:00am – 9:00am (GMT)
When looking on the chart, make a trend line and prepare for a breaking point. Once it’s there just place your one touch option within the right direction.
Remember: If there are no clear setups do not trade. Wait for next morning, there will be always new opportunities.
One Touch Binary Options
In the world of binary options, there are a variety of structures which are designed to take advantage of any one particular scenario. This gives the trader a choice of option in order to best reflect his/her view of the market or particular asset. For the beginner, the different options can sometimes be confusing, so it is best to familiarise yourself with the various structures on off in the retail market. For this reason, we have dedicated these pages on our site to cover the various types of options available.
In this section, we will be looking at One-touch options, how they work, and whether they are an instrument worth considering. As stated, the most popular binary options are call and put trades, which allow the trader to profit from a correct prediction on whether the price of an underlying asset will go up or down. This is popular with beginners, as the concept is also simple to understand. Once you have grasped the basics of options trading, you may be tempted to move on to One-touch binary options, so now let us explain the basics on this type of option.
What is a one-touch option?
A One-touch option is a binary option which offers a payout once the price of an underlying asset hits a certain predetermined level. The buyer can set the position of the barrier and the expiry date, and the broker will offer the best payout (in theory) should the barrier be broken (triggered is the correct market terminology). As with all binary options, there are only two possible outcomes, so if the strike level is not triggered, then the option expires worthless and the trader loses the cost of the option price paid. This type of option is used when a trader believes the price of an underlying asset will pass a certain level in a set period of time (the expiry period), but does not believe that gains or losses may not necessarily be sustained. At this point however, it is also worth considering that in this expected scenario, the trader will also benefit from trading the underlying asset and naturally, monitor the position constantly. Indeed, based on the level of payout, with the benefit of technical analysis, placing a stop at a certain point can offer much better risk to reward as the binary option will only pay a set payout. The underlying position however, has unlimited gains, yet the risk is defined by the level of the stop loss – so discipline is required.
One-touch options are naturally less expensive than Double One-touch options, as in the latter case, there are more strikes, and therefore more chance of a strike price being triggered for payout. It is also worth noting, that One-touch options can also be traded at the weekends (in some cases) when global markets are closed. The key reason for the popularity of One-touch options is that they can offer large returns, but this will require the strike price to be placed some way away from the current market. In this case, the buyer is looking for a significant rise in volatility. Once again, this can also be expressed through traditional spot trading.
Having touched on Double One-touch options, let us now explain what they are.
What is a double one-touch option?
A Double One-touch option is a binary option that offers the trader an agreed payout if the underlying asset triggers one or other of two predetermined levels. In this case, a strike price will be placed on either side of current price. The trader will determine the level of both barriers, the expiry date of the contract, and the payout will be set based on these parameters. As stated above, either one of the strike or barriers must be broken before the option expires in order to receive the payout offered (at outset) by the broker. If neither of the price levels are broken the option is rendered worthless, and the trader loses his/her her premium paid for the option.
A Double One-touch option can be a great option to use if you believe the price of an asset will change dramatically over a set period, but you are not sure which direction it will take. A trader stands to benefit whether the price goes up or down, but will require higher volatility to achieve payout. In order to get an attractive payout, the strikes or barriers will have to be placed some way either side of the current market price. If the barriers are set close to the market, the broker will offer a very low payout percentage due to the higher chance of either level being triggered. As such, the better opportunities are likely to remain inside traditional spot trading, where traders can achieve greater returns in relation to risk (taken).
Five steps to start your one-touch options trading
- Find the best on- touch options broker – As with any broker, research is required, but this site will offer plenty of informative and helpful reviews as well as other binary options articles.
- Open a binary options demo trading account – Start by trying out a demo account, as this will give you risk free taste of how binary options work and what they can and cannot offer you.
- Make your first deposit – Once you have some trading practice under your belt you should be ready to trade with real money, though start small and limit your risk(as you should always do).
- Choose an asset – Trading with a small amount of money to begin with, invest in an asset you feel comfortable and familiar with.
- Try different strategies – See what works and what doesn’t work for you, in order to find your winning formula.
Tips on finding the best binary options broker
We will finish by recapping some of the points we have touched on in one of our other pages, by looking at finding the best binary options broker, and what you should look out for.
Strategies to Use When Placing One Touch Binary Options Trades
One Touch trades are proving to be very popular with traders, for these types of trades do not require you to wait for long periods of time in the hope that when you trade closes it reaches a value that you predicated when you placed the trade.
When you are looking through the large range of different trading opportunities that are on offer to you at any Binary Options Broker via any of their trading platforms you will see two figures displayed alongside those trading opportunities when you are looking through the One Touch Trading opportunities.
You are then given the option of selecting whether you think the trade will end high and increasing value or will end low and its closing value will be lower than its opening value. However, when you place a One Touch trade you will then notice the trade ends as soon as the value of the trading opportunities touches one of the two values indicated.
The popularity of these types of trades are such as they allow you to quickly lock in a profit or know you have placed a losing one as soon as one of the initially indicated values have been reached. Many trades will use all manner of different strategy based around One Touch trades due to the high number of them they can place over one single session.
A double up type of strategy is one often used by traders when using One Touch trades, that trader will double their invested amount each time they place a losing trade so as to allow them to finally lock in a profit and recoup all losses when a winning trade is finally placed.
Frequently Asked Questions
- What Unit Stake Should I Use?
One aspect to putting into place a One Touch Binary Options trading strategy that you will have is in regards to the unit stake level you will be placing on each trade you make.
Most traders only want to put at risk a smaller percentage of their trading budget on each single trade, and as such you may wish to follow their example.
If that is the case then you should be prepared to use around 5% of you trading budget on each trade as your unit stake, however you can also increase or decrease that amount based on the level of risk you want to have in place on each trade you place.
Are One Touch Trades Expensive to Place?
You are going to be able to place One Touch trades not only at any of our approved Binary Options Brokers, but by signing up to any of them and making a deposit you will then be able to place either low stake or high stake trades.
You will not find you have to place high volumes of trades as most of our featured Brokers will have several different trader accounts that will allow you to place the volume of trades you want and also adjust the amount you place on any of their trading opportunities such as One Touch trades.
Can I Close One Touch Trades Early?
Due to the way that One Touch trades operate and have been designed, you are not going to be able to close these types of trades early. They will remain active and in place until the value of the trade reaches one of the two levels.
However, you are going to find that it is possible to close quite a number of other Binary Options trades early, however when you choose to do so you will lose a percentage of the profit you would have made if you left the trade to expiry normally, so only take an early expiry option when there is a good possibly of the trade losing or increasing its value.
Are Profits High On One Touch Trades?
One question that we do get asked a lot in regards to traders placing One Touch trades is whether the actual profits that can be made are as high as when they place some of the more standard trades.
Well you are going to find you can make some large trading profits when playing any type of Binary Options trades online, in fact the profits which can be made as just as high and generous as one any other type of trade including the much longer term trades.
Binary Trading Strategies 2020 – Best Binary Options Strategy
Developing binary options strategies can be a very difficult task if you don’t know what you are doing. This is why you should be practicing your method for quite some time before the live account gets going. There are several things you can do when it comes to a strategy. Learning everything you can about the markets you want to trade is the first and foremost part of the process. Without common knowledge of the asset you want to trade the likelihood of it working diminishes greatly.
What does it take to create a winning strategy? First of all, it takes a lot of dedication. Developing simple binary options trading strategies is a key to success. You may put in hours upon hours of time into making a working method. The key is not to get discourage if you aren’t successful at first. During the development you will learn the markets so well, that a hidden gem may pop up and save you. Keep pushing to find one that works. Also, don’t try and find or build the holy grail of binaries. The odds of this are zero. There are no sure bets in trading or safe harbours. All you need is a better winning percentage than losing. We’ll break down some of the things to help you get started on you strategy development process in our binary options trading school.
Binary Options Trading Strategy
If you are a better than average trader and can understand the markets this is where you want to start. You feel like you’ve watched the markets for some time, and you are ready. You must think about what might work and might not work. Rule out all the garbage so you don’t waste your time. Take a look at what you’ve done so far.
Are you a short-term or long-term trader? Are you looking to take 60 second binary trades or daily? Bring all the information to the table and then go from there. Once you have this you can start picking the assets you want to trade. Look for patterns on the charts (trading with candlesticks) or use indicators to help you decide. Price action is your friend so make sure you include that as well. You have a lot to consider. After a while things should come together for you to start testing. If you find something that has potential, you must backward and forward test. You’ll be happy you did before real money is at stake.
You need to pick a broker where you will apply your strategies from our binary options brokers list. Be sure you do not find a random broker or an offer you mysteriously received in your inbox. You can check out the IQ option platform, which is the best trading software in our opinion. If you reside in USA you should read our Nadex review.
Copy Someone Else’s Strategy with a Binary Options Robot
Don’t feel bad copying another traders work with binary options robot. Take a strategy you found in Binary Options University or in a book and do your own testing. Be sure it works the way the developed says it does. Again, test and test some more. This will help you over the long run. If you find some success after a while you can then bring it to the IQ Option trading platform. Over time you will see if it is successful or not. Again, don’t get down if it doesn’t work. This is a long process.
Free Binary Options Trading Strategies
If you are feeling really good about your fundamentals of binary trading skills, you can take someone else’s strategy and make it your own. The strategies we suggest to apply are all free binary options trading strategies. We do not charge you to use our website and large portfolio of websites. You can apply a moving average or some kind of trading indicator to help rule out the noise. There is so much you can do to an existing strategy to make it that much better. Don’t try and reinvent the wheel if it is working. A lot of times people tweak methods and make them worse. This leads you to believe the original strategy isn’t good. You can always change what you have, but remember you won’t know for some time if it is good or not.
Test the Binary Options Trading Strategy
As mentioned above, this is probably the most important part of developing a strategy. Testing it can save you tons of money. We would say time, but the fact is it takes time to practice and make it right. Some have tried to trade with binary options robot where others have been chasing higher binary options payouts via touch no touch binary options.
How do you test a strategy? Easily, all you have to do is open a 24option free demo account or alternatively use the binary.com app and you are well on your way. You of course need the charting software to manage the price action. Bring the two together and you are well on your way. No matter if you are using indicators or just plain price, you have to put it to work and see if you get a decent winning percentage.
4 Simple Binary Options Trading Strategies
One of the biggest differences between binary options trading and simple gambling comes from the fact that gambling requires little or no strategy and is based more on probability and “luck.” Options traders rely on more complicated approaches, however, but formulating a strategy can seem incredibly difficult in the early stages. Here, we will look at some of the factors to consider when you are developing your strategies in order to ensure that they meet your investment needs and allow you to use your strengths to maximize gains.
1: Selecting Your Time Frames
One of the first factors to consider is the trading time frame, and it can be argued that this is even more important for binary options than it is for other types of trading. This comes from the fact that your trading time period must be outlined before the actual trade is even open.
Selecting your time frame will depend on a variety of factors. What type of trader are you? How much time (on a daily basis) do you have to devote to managing your trades (and in looking for opportunities)? Do you prefer a fast-paced approach (such as those seen in 60 Seconds options)? Or a more conservative, long term approach (using weekly or monthly options expiries)? Are there any economic events (such as an interest rate decision or corporate earnings release) which will affect the performance of the trade?
All of these factors must be addressed when defining the parameters of your trade, and the results here will vary from person to person.
2: Selecting Your Binary Trading Assets
The next element in formulating your strategy is to decide on your trading assets. Do you have a strong knowledge base for a particular asset type? If, for example, you have a firm understanding of the stock market (and are able to interpret earnings statements) it will make sense to focus your attention on those markets. Alternatively, if you have a strong understanding of macroeconomics (constructing trades with economic data), you might prefer to focus on commodities or currencies.
There are factors that have a special influence on each these asset types, so it will be important for you to be able to actively trade during those events. For commodities, this might include events like the weekly inventories report in oil, whereas in currency markets it will be important to monitor the markets when major central banks are conducting their meetings.
3: Technical Analysis or Fundamental Analysis?
After you have decided on your trading assets and time frames, you will need to determine your forecasts for price direction. To do this, traders will either work from technical (chart) analysis, fundamental analysis (a study of economic reports), or some combination of the two. If you tend to be more skilled in areas of math and probability, you will likely be better suited for chart analysis. For the more “right brained” trader, this time might be better spent assessing recent economic data that is likely to influence the prices of your asset.
Most traders will use a combination of these two strategies, waiting for a major economic event to generate an overall bias (for prices to move either up or down), and then use technical chart analysis (using price charts) in order to decide on exact price levels to establish the trade. This can be helpful in increasing the probability for a successful trade, as it ensures your trade is supported by economic data and asset valuation.
4: Use Strengths When Formulating a Binary Options Trading Strategy
Formulating your binary options trading strategy can seem like a daunting task. To be sure, forecasting the future prices of an asset is complicated. But when we break down the process into its component parts, the process does start to look attainable. Most of these elements will be based on your investment needs.
Do you want to be an aggressive trader (higher risks and rewards), or do you want to take a more conservative approach (extending your trading time frames)? Fortunately, the markets have evolved in ways that cater to traders of all styles and investment goals. So, no matter which avenue you choose, there is an accompanying binary trading strategy that can be matched to your trading character.
10 Tips for Winning Trading Binary Options Strategies
Strategies are an extremely important part of trading. Some binary options trading strategies are proven to work extremely well, while others may be shared with others prior to being fully tested. The following 10 tips can be used regardless of strategy and trade type. Each of these can help prevent substantial losses and should also help in the accumulation of higher levels of profits.
1:Never test a strategy by investing any amount that will make it difficult to absorb a loss.
Trading does involve risk and no strategy can place the trader in the money 100% of the time. Only invest amounts that equal a small percentage of your total account funds. Your binary options trading education is important to remember while trading.
2:Money management skills should not be ignored when using strategies.
The same principles of fund management should still apply regardless of whether the trade is extremely basic or strategy-based.
3. Be patient
When investing smaller amounts in order to test strategies, don’t expect to generate substantial profits. Patience is a virtue, and having this trait will allow for reasonable trades to be made while important skills are gained.
4: Never force any trade, regardless of how desperate you are to test a strategy.
Market conditions must be considered, and analysis should be completed. Profits most often come from waiting for the right trade and then purchasing a contract. Forcing a trade is never a good thing.
5: Remain aware of financial economic data releases each day.
These can greatly impact the price of an asset and could easily render a binary options strategy useless at times. Monitor financial news at all times in order to avoid a high number of losses. Be sure you can get your money out if you win. Avoid trading with brokers on our binary options scams blacklist and instead be sure using the cashier like olymp trade withdrawal or other respected trading platforms.
6: Watch for stagnation in price movement.
It is not uncommon for asset prices to remain very stable just prior to announcements being made in regard to them. Once the latest information has been processed by investors, the asset price should quickly begin moving again. These period could either be problematic or advantageous when using certain strategies.
7: When using strategies to trade currency pairs, capitalise on time frames when liquidity is at its highest.
This is often the time period when the London and New York markets overlap and are both open for business at the same time. Other market overlaps also occur and could prove to be excellent trading times for currency pairs.
8: Always note the outcomes of trades made using strategies.
Doing so will allow you to quickly determine which strategies are most effective. It will also allow ineffective strategies to be eliminated.
9: Regardless of strategy type, when several losses occur in succession, stop trading temporarily.
This time away can be used to re-evaluate the ever-changing market and adapt to current conditions.
10: Be willing to accept that some trades will end out of the money.
Emotions will play a role in trading. By being willing to accept loss as a part of the process, it will be much easier to press on and make the changes needed in order to profit more often than not. You need to learn itm and otm meaning in finance.
Strategies are too important to be ignored. New traders will want to make use of the most basic methods before moving on to more advanced methods. With time will come an understanding of how strategies are developed and how to alter existing binary options strategies so as to render them even more effective.
CONCLUSION OF BINARY TRADING STRATEGIES
The truth is, there is no holy grail trading system. If you can create one, please let us know. However, there are strategies that work that are available now or just waiting to be created. Figure out what type of trader you are during this phase and try to develop the best method possible. Use your binary options demo account wisely and don’t force any real money into the creation process. Once you have a good sign, run with it and see what it can do for you. If you have something that works over time, then you are in great shape.
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One-Touch Binary Options Explained
With the one-touch binary option trade, the binary options trader selects a strike price above or below the current market price as well as an expiration time. The broker will offer him a payout percentage corresponding to his selection.
For the investment to payoff, the price of the underlying asset only needs to hit the strike price once before the option expires and does not need to exceed this level at the time of expiry.
Payout will vary greatly depending how far away is the strike price and the time till expiration. The further away the strike price, the higher the payout. The longer the expiration time, the lower the payout as one has more time to hit the target.
Unlike the common high-low variant where the payout rarely exceed 90%, the payouts for one touch binary options can easily exceed 100% and payouts between 200% to 500% are not uncommon.
It is entirely up to the trader how much he wishes to invest with each purchase of the binary option but the minimum and maximum he can put in with each option varies across brokerages.
One Touch Binary Option Example
EUR/USD is currently trading at $1.29. A binary options brokerage is offering 200% payout for the one-touch binary option with a strike price of $1.30 that expires in 5 minutes.
After tracking the price movement of EUR/USD for the past hour, the binary option trader believes that the price will hit $1.30 within the next 5 minutes and decides to invest $100 to purchase this one-touch binary option.
If EUR/USD goes up to $1.30 anytime within the next five minutes, the investment pays off and the trader earns a profit of 200% of his initial investment, which is $200.
However, if the price of EUR/USD never rise to the $1.30 price point during the whole 5 minutes, the trader will have lost his initial investment of $100.
Note that it does not matter whether the price of EUR/USD skyrocketed up to $1.40 or flash crashed below $1.00, both the profit and loss will be fixed at $200 and $100 respectively.
No-Touch Binary Option
Conversely, there is the no-touch variant as well. See No-Touch Binary Options.
What are the Main Types of Binary Options?
Learn how the One-Touch, No-Touch and Range/Boundary binary options differ from the common high-low viety and how to trade them. [Read on. ]
What Assets can be Traded using Binary Options?
Many of the most popular financial instruments such as currency pairs, equities and commodities are available to trade using binary options. . [Read on. ]
Binary Options: Trading or Gambling?
Is binary option a legitimate financial instrument or just another form of gambling. [Read on. ]
Binary Options & Trading Robots: A Perfect Match?
Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, combined with perfect consistency. [Read on. ]
Is Binary Options Trading a Scam?
Learn how you can get scammed when trading binary options if you are not careful. [Read on. ]
How to Select a Binary Options Broker?
With so many scam brokers out there, before you learn how to trade, one must know how to separate the wheat from the chaff and find a trustworthy binary options brokerage. [Read on. ]
Binary Options: Calculating Breakeven Win-Rate for a Given Payout
How often does my trades need to be successful in order to be consistently profitable in the long run when trading binary options. [Read on. ]
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