Predicting if a currency pair would be above or below the strike price before it expires pays the lowest return. It is the simplest and most common type of binary option. Easy enough, eh?
Heck, some even expire touch binary option seconds! Of course, this could either do your account a lot of good or it can cause a whole lot of damage.
No-Touch Binary Options Explained
Make sure you manage your risk properly! Instead, it just needs to TOUCH the strike price at least once during the option contract period for it to be profitable.
Last update: 28 January 7 min read No Touch Binary Options You have decided to enter into the world of binary options trading. You have found a binary options broker to work with, yet you remain a little confused over the different types of options to go for. They may seem complicated but the principles are relatively simple.
You decide to take the call option. On the contrary, those who took a No-Touch option on the same price would have lost their trades since the pair DID touch the strike price.
Touch trades typically work out well when volatility picks up while no-touch trades are ideal for pairs that have a tendency to consolidate. Still not exciting enough for ya? For In Range trades, the market price must stay within a predetermined range and avoid touching the two strike prices within the option period in order for your trade to be in-the-money.
The most common and simplest among them are call and put trades. After they gain some experience, many venture into one touch binary trading. The above example is from 24Option. The white jagged moving line is the current price point.
Some brokers offer Out of Range options where traders can profit if price breaks out of the predetermined range within the option period. Your broker is offering a range option between 1.
Range options are best used when volatility is low, although some brokers offer the option to take a risk on the idea that price WILL break out of the predetermined range. Alternatively, a few brokers also offer options on predetermined ranges that are far from the current market price.