One Touch binary options trades are an excellent choice for traders who wish to aggressively pursue profits. High yield touch trades in particular offer as much as 500% profit rates. Along with these high payouts come high risk, however. For this reason, the following One Touch strategy is not going to be the best choice for all traders. You’ll want to have a good handle on how to perform analysis and should also be willing to take on a higher level of risk.
Still on board? Great! Let’s start out by considering the best time to use this strategy. Ideally, you’ll reserve this strategy for times during which a clear underlying asset price trend is taking place and overall market conditions are active. The asset price has to be in motion in order to stand any chance of having a high yield touch trade finish in the money.
In order to profit from One Touch trades, the price of your selected underlying asset must touch a pre-selected target price at some point while the trade is live. If the expiry time period concludes and no touch has occurred, you lose your investment amount. The higher level of risk comes from having a target price which is quite a distance apart from the start price. If the target is higher than the starting price, you’ll opt for a Call position. Lower, and you’ll opt for a Put position.
For example, if Starbucks is about to release their quarterly earnings report, you could check to see what the anticipated numbers are. Now, assuming that the actual numbers were far better than expected, a substantial price increase would be highly likely. Based on this information you could enter into a One Touch binary options trade using the Call option. The target price decision would need to be based on just how much better the data was than what was predicted by financial experts.
- Step one is going to be to identify an underlying asset which is likely to launch into a trend following the release of economic data or an earnings release. A quick check of a financial news website and price charts should point you in the right direction.
- Next you’ll want to examine the key parameters. These include elements such as the target price, how much the trade pays out should you win, rebate amount (if any), and the available expiry time period options.
- Enter into the trade based upon what you’ve noted from the price charts. You’ll simply trade along with the noted trend, whether it is up or down. Some binary options brokers allow the trader to select the target price, but this is rarely ever the case with high yield trades.
All that is left to do at this point is to monitor your trade. Within most platforms, in the money positions are green and out of the money positions are red. You should be able to track the progress live. If you get the touch you’re looking for, the trade is considered complete and you’ve earned a substantial profit.
Some binary options brokers offer high yield One Touch trades throughout the week, while others reserve this opportunities for the weekend when trade options may be limited. Weekend trades usually carry an expiry time of one week. While these trades may require some patience, a week is actually an excellent time period for allowing the asset to reach the target price and net some profits for your account.