Learn more about One Touch options trading. An attractive characteristic of this type of options is the huge payouts they provide. If you predict correctly and the price of the asset touches the goal rate at the time of termination, your trade will end "in the money" and you will be paid out the predetermined payout, generally between % One touch option is for traders who know which direction the price of the asset will move. Often, this type of option have a very profitable returns as you can expect a payout of % – % for in-the-money trade. It is very common for traders to reach % of profits for one touch options but the payout rate can reach higher to up to % A One Touch option is a directional trade where you start out with price at a certain level, and then you make a wager that price will touch a given trigger value within the expiry period of the trade. One Touch trades may involve wagers on price rising or falling. It all depends on where the trigger value is. The opposite of a One Touch option
One Touch Options Explained - BinaryOptions
A type of exotic option in which the holder receives a payout once the price of the underlying asset reaches or exceeds a specific level or barrier. The one touch options of a one-touch option is entitled, at the outset of the option contract, to set the one touch options, the time to maturity and the payoff once the option touches the barrier.
In case the barrier is not reached, the holder receives nothing, one touch options, and therefore loses the premium paid to the option writer. The one-touch option is also called a lock-in optiontouch digital or binary option. Save my name, email, and website in this browser for the next time I comment. More results Generic filters Hidden label. Hidden label. Derivatives Terms. Previous Out-of-The-Money Swaption.
Next Option Beta. See also Double One-Touch Option Touch Option Instant One Touch Option Stealth Partial Barrier Double One Touch Option Double No-Touch Option Digital No-Touch Option Digital Instant One-Touch Option Binary Range Option Exotic Barrier Option.
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24Option – Arguably one of the best-regarded brokers in the binary options business, 24Option is our top choice for one touch binary trading. They use a top-notch trading platform (OptionFair), offer competitive returns (65% to %, depending on the instrument), and maintain a relatively low minimum trade amount ($24) One touch option is for traders who know which direction the price of the asset will move. Often, this type of option have a very profitable returns as you can expect a payout of % – % for in-the-money trade. It is very common for traders to reach % of profits for one touch options but the payout rate can reach higher to up to % The binary options one-touch call is a plain barrier option where the underlying has to only trade at or above the strike price for the strategy to immediately settle at So, in the example of Figure 1, the S&P Index has to move to or higher for the binary options one-touch call to immediately be triggered and settle at with
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