What are Touch Binary Options?

With Touch and No Touch Binary Options you have to determine whether the price of an asset will touch a predetermined price or not before the option expires (ex: 1 hour or 1 day from now).

one-touch

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How to Trade Touch Binary Options?

The trader needs to choose whether the market price will Touch or Not Touch the target price any time before the expiry time. Both the price and target are constantly moving until you place your trade. Both prices are determined by the broker.

Start Trading Touch Binary Options with a selected Broker.

Example of placing a Touch Option:

You think that during the next 1 hour, the price of Crude Oil will touch a lower target price of 86.036 given by the broker.

So you enter the market at 86.275, you select “Touch”, the amount you want to invest, for example $200, and the time the option will expire. Then place your trade.

Touch Options expire immediately as a winning trade, if the market price touches the target price, any time before expiration.

Touch Binary Options Example Trade

In the image below, you can see a line in the chart at 86.036, which is the lower target price. If the market price touches this price any time before the option expires, then your trade is a winning one.

Touch Binary Options Chart

Once the expiry time is reached there are 2 possible outcomes:

  • • The price of Crude Oil touches the target price 86.036 before the expiry time – so your option was In the Money (ITM), which means you’ve made a profit! Since the return was 72%, with your $200 investment you’ve made a profit of $144. The payout will be $344.
  • • The price of Crude Oil doesn’t touch the target price 86.036 before the expiry time – so your option was Out of the Money (OTM). Options that expire OTM typically have 0% return and do not offer any refund. In this case you will lose your whole investment of $200.
Start Trading Touch Binary Options with a selected Broker.

Example of placing a No Touch Option:

You think that during the next 1 hour, the price of Crude Oil will never touch a lower target price of 86.025 given by the broker. So you enter the market at 86.265, you select “No Touch”, the amount you want to invest, for example $200, and the time the option will expire. Then place your trade.

No Touch Binary Options Example Trade

In the image below, you can see a line in the chart at 86.025, which is the lower target price. If the market price stays above this line and never touches it by the time the option expires, your trade is a winning one.

No Touch Binary Options Chart

When the expiry time is reached there are 2 possible outcomes:

  • • The price of Crude Oil doesn’t touch the target price 86.025 before the expiry time – so your option was In the Money (ITM), which means you’ve made a profit! Since the return was 72%, with your $200 investment you’ve made a profit of $144. The payout will be $344.
  • • The price of Crude Oil touches the target price 86.025 before the expiry time – so your option was Out of the Money (OTM). Options that expire OTM typically have 0% return and do not offer any refund. In this case you will lose your whole investment of $200. No Touch Options expire immediately OTM, if the market price touches the target price, any time before expiration.

 

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