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Touch No Touch Trading

trading online markets

Binary options trading come in multiple forms and types and one of them is the touch/ no touch option. They are very easy to comprehend as they revolve around the same basic principle that rules the binary options market.

What is it?

The touch/ no touch option implies that you (the investor) predict that an asset you take interest in will (not) reach a certain price limit in the amount of time set by the broker. If the price touches the limit you have predicted you will instantly know that your trade has been profitable and it will be closed. If you buy no touch options and the price does not reach the target, you are again successful.
one_touch_ioption
The farther away the target price is set, the more profit you will be making off the trade. In other words, the risk level is directly proportional to your potential gains. Touch/ no touch options are quite similar to the call/ put options with the difference that here you also predict the extent of the movement.

How Does it Work?

The best way to explain the mechanism of touch/ no touch binary options trading is to illustrate it through an example. So, we will take oil as the reference asset for it. The spot price is set to 95 dollars per barrel and the target price is 98 dollars.
optionbit_touch
If you make an investment of 100 dollars in buying no touch options and by the end of the trading expiry time oil does not reach the value of 98 dollars you will make a profit of 170 dollars. Similarly, if you buy touch options and at some point along the trading the price of oil reaches its target price you have immediately made profit.

Which Is the Best Strategy?

There is no need to say that the best thing you can do in the binary options field is to study the market as much as possible. Study your assets and follow the financial news all the time; do not throw yourself into a touch/ no touch trade without knowing what the odds for profit are.

You will have bigger chances if you focus on an asset whose value moves up and down more. It would also be better if you chose a platform that allows you to set the target price yourself instead of having it fixed by the broker. Nevertheless, knowing the market is the key factor that influences every binary options trade.

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