What are One Touch Options

One touch options are a type of binary options which are very profitable if you know how does it work. They are actually a little bit more difficult to play, because they require a lot more guess work than the usual options, but are a lot more cost effective because you stand to earn between 300% and 500% if you get it right. It simplifies the guessing process and gives you a chance to learn a lot more but, while risking a little bit more.

How Does It Work?

We shall explain it to with ease. One touch options can usually be played during the weekend and are events which are available to you when the market closes on Friday. The only thing that you need to do or achieve is to predict whether the price of the asset is going to touch the strike price, which the broker sets, during the given period of time. You need to remember that it does not matter what is the price of your asset after the expiration period, the only thing that you need to concentrate on is whether the price has managed to “touch” at least once the strike price at a certain point. If you play it correctly and the market manages to touch the given strike price you stand to earn large amounts of money and winnings of 300% to 500%, or depending how much the broker offers.

Example Of One Touch Options

In order to explain it a bit more closer to you we can use an example. You can use this example as a sort of a guide to help you learn how to trade with one touch options. Let say that the asset you are betting is EUR/USD currency pair and that the closing price on Friday is exactly 1.38000. The broker will give you two options to choose from, the “call” option for the price going up or touching the target number of 1.38100, and the secondary option of the price going down or the “put” option which needs to touch the target price of 1.37900. The period you will have to wait is determined and can span from a matter of hours to two days or during the whole weekend. Remember this, the market does not have to end up above or beneath the given strike price, it only needs to touch the strike price once during the given period in order for you to win.

So let say you have chosen the “call” option because you think that EUR/USD will reach the targeted price of 1.38100 by the end of the weekend. If you predicted correctly and EUR/USD touches the price you are in the money. Here you do not have to wait for the price to settle, because when the asset reaches the targeted number, no matter whether that number was up or down, you are in the clear and are in-the-money. The price may also end up much below the strike price when the time elapses, but the main thing that you need to remember is that by reaching, or rather “touching” the strike price, you have managed to win.

One Touch Options are a way of utilizing your knowledge gained by using Binary Options and making a much larger profit. With practice and a little bit of calculating and analysis one stands to make a lot more but by risking a little bit more. “Who dares wins” is the saying, and if you think that it is true you can try One Touch Options.