Tip:
Highlight text to annotate it
X
One Touch Option is also called touch or no touch option. One touch option is different
from simple call or put rate option. In simple call or put rate option you need the price
to close above or below the strike price, in order to make a profit. When it comes to
one touch trading the price only need to touch the strike price once or cross, beyond it
within the expiration to make a payoff.
So I will show you this on the diagram here. For one touch option the price need to touch
the strike price once or cross, beyond it within the expiration in order to make a payoff.
As with simple call or put rate you could place one touch for call or put, if you believe
the price will hit the upper strike price, you will place the call one touch trade. If
you believe the strike will touch the lower strike price, you will place the put one touch
trade. The next element is the strike price. Usually the strike prices is offered by a
broker. So it's offered by broker and there will be different range of strike prices for
one asset. The third aspect of one touch trade is expiration. The expiration of one touch
trade is one week or five business days usually. With most of the brokers you can trade one
touch binary option, on weekends that is Saturday or Sunday only. As the trade type is longer
term so you need to perform analysis, that is also longer term in order to take advantage,
of this type of trade. The payoff is the most exciting part of one touch binary option.
The payoff is a way higher than simple call or put rate. In simple call or put rate you
make from 70 to 80%, whereas in one touch binary option trade, you make around from
150% to 400%.
Next I want to show you how one touch binary option trade looks over a live trading platform.
So in order to show you this I will open my web browser. Enter my broker name. That is
www.anyoption.com. Next I will enter my user id. My password and click login. This is my
live trading account and I'm recording this video on Sunday, so you will see most of the
simple call or put rate options are not available. Just like most of the other binary options
broker anyoption also have a separate section for one touch trades. I will click this. Now
you can see different one touch trades for different assets over the screen. I will scroll
this lower in order to see the euro dollar one touch trades available. Now you can see
four different one touch trades for euro USD currency pair. The first one is euro USD with
a strike price of 1.336. It had a return of 350%. So what does this mean? This means like
if on the last Friday -- let me just scroll after the recording area. This means if the
last close price of the euro USD which was on Friday, was 299 you need the price of the
euro dollar to go above and touch the 1.366, in order to make a profit of 350% over your
investment. The expiration time of these options is 8th of June 2013 so it's a five business
days expiration. The one touch options are traded in multiple of $50, on this particular
platform so I could select any number of units, and it will represent me the corresponding
dollar value. So four units mean $200. The same goes on for put one touch trade if you
believe the price of the underlying asset, will go down you will place a put one touch
trade. That means if the current price or if the last close price of the euro USD was
299, you need the price of the euro USD, to depreciate in value and touch the 1.263 or
go -- or fall beyond this level, in order to make a profit of 350% over your investment.
Again the expiration time of this option is also same as before. That is 8th of June 2013.
That is on one touch binary options. If you have any questions or comments please leave
them in the comments section below. To learn my strategy please visit my website that is
www.binaryoptionsgain.com. Thanks for watching.