Guide To One Touch Trades

Guide To One Touch Trades

The basic digital options trade often receives the most attention, but additional trade types do exist and these can yield plenty of profit. Each trade type will pair better with specific market conditions. One Touch trades are an interesting choice, because at a base level they only require that the asset price be in motion.

In order for a One Touch trade to provide you with profit, the price of your selected asset will need to touch (or surpass) a pre-determined target price. Just one touch and your trade finishes in the money. This trade type can be used with both upward and downward price movement, but there will only be one target which is positioned either above or below the entry price.

Where this trade type differs from the basic digital options trade is in the fact that the distance of price movement does matter. With basic trades you only need to predict whether the asset price is going to be higher or lower than the entry price. With One Touch, you’ll also need to predict just how much the price may change over a period of time.

With this in mind, a larger space between the entry price and the target price is going to be riskier than a trade in which the entry price and target price are positioned closer together. Broker Options offers a variety of One Touch trades, allowing traders to select the amount of risk that they feel most comfortable with.

Asset price trends need not be in place in order to profit from One Touch trades, but they can certainly cut down on risk. A noted price trend, in either direction, could be the only indicator needed so as to make the decision about whether to enter into a One Touch trade.

As always, give careful consideration to the expiry time selection. There will be times in which more time is needed so as to allow the asset price to reach the target price. Here again, risk can be adjusted via your selections. Whenever a strong trend is in place, a shorter expiry time may work fine. With no trend in place, a longer expiry may be the better selection.

One Touch trades can offer some extremely high profits. This is just one of the reasons why so many Broker Options traders utilize this type of digital options trade. Analysis is required, as usual, but many traders find that with practice One Touch trades can equate to easy profits.

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