One of the varieties of binary options is the touch/no touch option. This option gives you a set price and your job is to determine whether or not the underlying asset will reach that price during the life of the binary option. If it touches or goes past the price and you chose touch, your trade will be profitable.
Which brokers have these types of options?
AnyOption, 24 Option, and Banc de Binary all carry these types of options. For these, the option only needs to move equal to your goal price to award you with a profitable trade. 24 Option has a product called the high yield touch which has payout rates as high as 350 percent. With this, if your asset goes up to a price well above its current number, you are awarded for your foresight with one of the largest payouts in the binary option business.
How do I trade touch/no touch options?
This question depends on the site that you are trading at, like www.24option.com. If you are trading at a site where the asset only needs to move a slight distance to give you a profitable trade, this type of trading can be even more profitable than trading traditional call/put options. The downside of this is that payouts are generally lower, so you need to trade more often to make the same amount of profit.
Who should trade touch/no touch options?
Touch and no touch options can be traded by virtually anyone. You might want to get your feet wet with call and put options first, just to give you a bit of experience, but touch and no touch options are equally easy to understand. Again, these don’t pay as much at some sites, so this will take away a little bit of business from this type of trading. Also, there is the possibility that the price will go up as you thought it would, but just not enough to make your goal price. In this instance, a simple call option would have been profitable. This means that a little bit more effort needs to go into the research process before you enter one of these trades.
What’s a good touch/no touch option strategy?
The best strategy for touch/no touch binary options will entail a bit more effort than call/put options do. In this respect, they are more akin to traditional options in that you need to more accurately predict the final price in order to be profitable. With that said, there is no one set in stone strategy that will give you positive results time after time. Doing research is the best way to predict prices.
Touch/no touch binary options are a great way to make money. The thing to remember is that the farther away the goal price is, the higher the payouts. This also makes them harder to achieve consistently. 24 Option is one of the best places to find these high payout options, but you should probably start out with easier touch/no touch options before trying your hand at these.