Touch is based on if the price action of the traded asset touches a price barrier before the expiration of the trade.
If we look at the chart below, this shows an example of a One Touch trade on the trading platform of Betonmarkets, one of the binary options brokers that offer this trade variety. We can see here that the financial asset is spot gold, to be purchased at a spot price of The price barrier which can be adjusted by the trader has been set in this example to Now notice a few things.
The reason for this is that our price barrier is quite close to the current market price. As a rule, the closer the price barrier to the market price, the lesser the payout the trade will give. Let us look at a live trade example of gold, done on 19 th October A reverse head and shoulders pattern developed on day 3, causing a remarkable spike on the 4 th day that sent the trade into winning territory for the payout. This trade was not perfect, and was made with a fundamental view.
If we had paid more attention to the technical aspects of this trade, this would have increased the payout dramatically. This is simple if you know what you are doing. All it requires is one touch for you to have money in the bank. But the key questions are:. The first thing to realise is that the touch you need could be in any direction, bullish or bearish. You must carry out proper technical and fundamental analysis to determine which direction the market is most likely to end up.
This will enable you set the correct barrier. In our example, the fundamentals were pointing to renewed safe haven purchases of gold as a result of the Eurozone crisis; a trade call which turned out to be correct. Secondly, tweak the barrier prices. Binary options platforms are set to allow you know what the trade costs and payouts will be. That way, you can strike a good balance between costs and payouts. Thirdly, platforms like Betonmarkets have a default minimum of 7 days. This is a reasonable time to give a trade to make the target.
All it takes is one touch. Even if the market reverses thereafter, you have achieved your target and by the 7 th day, you will get paid. This is one way to play the markets. But the key questions are: So trade the One Touch and make your money using these strategies.More...