What is One Touch Trading?
There are two options for One Touch Trading, either “touch” or “no touch”.
A “touch” option is a prediction that the market will reach a specific price before the option expires. While the classic investments are offered via a fixed amount, One Touch investments are offered in investment units of the entry rate. For example, a 50$ weekly option with a return rate of 450% means that if the stated goal is touched (not necessarily closed), the trader will receive a total of 275$ return on his 50$ investments. This can be purchased in 5 units to equal a 250$ investment with a potential return of 1,375$ at the end of the week. Traders should look at individual One Touch options for exact payout rates, as some may differ. Actual returns vary between 250%-700% and are usually listed on the One Touch options index. In short, if the option you chose touched the specific price before expiry then you made a profitable trade.
Conversely a “no touch” option is the expectation that the price will not cross a specific price target before expiry time. For this option, you need to wait until the expiration to know if it is in the money, but it could get out of the money and expire if the target is reached at any time during the life of the option.
Rewards of One Touch Options
First off, in order for the “Touch” trade to be profitable all you need is the asset to touch the target price. When you set the trade you can change the target and duration of the option to better fit your prediction. You can choose a target either below or above the market.
If you expect a trend to start or to continue, then the touch option is ideal for this forecast. But even if no real trend occurs, the trade can still be profitable if there is some movement in the market. Even if a trend starts and then reverses it is still good enough for that “touch” option to be profitable.
How to execute a One Touch Trade
- Enter OneTouch trading mode
- Choose the asset you with to trade
- Select the number of units to purchase
- Click APPLY
- Repurchase the option by clicking “BUY MORE” and accept the trade
Please Note: A shorter duration will have a higher payout than a longer duration (as there is less chance to reach the target). By tailoring the parameters to fit your exact prediction you can maximize your chance of making a profitable trade.
Now, about the “no touch” option. This is basically the opposite of the touch option. In order to win, you need the market to trend in the opposite direction of your target. For the No Touch, it is ideal not to have your target too close to the current underlying price.
Please Note: The further the target the lower the payout (as there is less chance to hit that level), so you need to find a balance between getting a not too risky position while still receiving a high payout in the end.