One touch binary option pricing
With the one-touch binary option trade, the binary options trader selects a strike price above or below the current market price as well as an expiration time. The broker will offer him a payout percentage corresponding to his selection. For the investment to payoff, the price of the underlying asset only needs to hit the strike price once before the option expires and does not need to exceed this level at the time of expiry. Payout will vary greatly depending how far away is the strike price and the time till expiration.
The further away the strike price, the higher the payout. The longer the expiration time, the lower the payout as one has more time to hit the target. It is entirely up to the trader how much he wishes to invest with each purchase of the binary option but the minimum and maximum he can put in with each option varies across brokerages. Conversely, there is the no-touch variant as well. See No-Touch Binary Options.
Many of the most popular financial instruments such as currency pairs, equities and commodities are available to trade using binary options. Is binary option a legitimate financial instrument or just another form of gambling Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, combined with perfect consistency 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.