There are many contracts’ varieties that have different profitability and risk levels in the binary options trading. Thus, the higher percent offered by a broker, the higher is a risk. One touch binary options belong to the most profitable and risky among all.
One touch binary options: what is it?
The greatest challenge of this binary options variety is the fact that a trader has to determine not only the direction, but also whether the underlying asset’s price will touch the certain level. This being said, an opportunity to open a deal appears once in a week. And if during the next seven days the price will never touch the level specified by a broker, a trader will lose all of the invested funds.
In order to trade with these binary options, you need both experience and an ability to analyze the market. But the analysis of the market has to be conducted not only to determine what trend is observed, but also to find out its goals. If a trader thinks that, for example, on the next week the underlying asset GBP/USD will reach the level of 1.6020, which has been claimed by a broker as the goal for the one touch option, then, of course, the risk worth it. In this case, profit can reach 600% and more (depending up the broker).
One touch binary option is an excellent possibility to increase the initial deposit for those who trade with it. Just imagine that such profitability is brought by about ten deals that are opened by the simple Call and Put options. However, in this case, trader’s risks grow substantially too. This is because in this case you have to determine the precise level. For this reason, only the true professionals can deal with such task.
One touch binary options: main benefits
Perhaps the major benefit of this exotic option is that it has a very high profitability level comparing to others. You can buy a contract on any of the offered by a broker underlying assets starting from the fee of $100. For this reason, if you are feeling confident, you can try.
The second benefit of this binary options’ type lies in a fact that you can work with it on the weekends too. You do not have to be in a hurry, so you can consider the future deal carefully. Buying of this option is possible on Saturday. For example, a trader has read an analytic report when having a breakfast. Following that, he can open the broker’s website, where the one touch binary options are traded, and buy one binary option.
The main a trader has to come up with is the investment’s volume. If a trader is confident in his success, he can invest not only $100, but $1K also. In this case, profit will be fairly good.
There is one more benefit of such binary option: the price has to touch or exceed the level only once. And it has to happen not necessarily at the moment of expiration. In other words, if at the moment of expiration the price is lower than the price at which the underlying asset has been bought and the deal’s terms were met at least once, a trader will make a profit.
All abovementioned clearly proves that trying this option worth it. This is because one touch binary option gives the high profitability for the short time domain. Forex traders have not even dreamt about it. For this reason, if you feel confident, go for it. Who knows, maybe exactly these options will become your favorite thing to do during weekends.