Trading binary options with touch options (touch trading) is helpful when performed in volatile markets. Touch options are offered with different names and different rules in each binary options broker. The most usual ones touch/no touch options and one touch options are set with different trading terms and conditions in certain brokers. How can these touch options be used in your trading?

Binary options offer many trading types, some of them are high/low, touch, and boundary options. Those variants are provided to make binary options trading more attractive, as its basic is only set by determining a higher or lower target level from the current price position. Each of those trading types are placed to make trading easier in every market condition. In this case, trading with touch options (touch trading) is helpful when performed in volatile markets.

It's easy to set a definite direction when market condition is normal, but it's definitely harder to determine which way the price is going to go when trading in volatile markets. To make it easier, a lot of binary options brokers now offer touch trading. It's basically performed by setting some price levels that has to be touched or not to be touched at all before your option expires. By choosing this option type, your option will end up in the money no matter where's the price end up as long as your price target is touched (touch option) or not touched (no touch option) during your trading period. It's different from using high/low options, where you need to make sure that the price will end in a higher or lower position. Assuming that you trade with touch options, your success will be guaranteed when your target is touched even for only once during your trading period.

Touch options are offered with different names and different rules in each binary options broker. The most usual one, touch/no touch is able to give you the options to either choose a target level to be touched (touch) or to not be touched (no touch). In addition, there's also a One Touch Option that is set with diverse trading rules in each binary options broker. How can these touch options be used in your trading?

 

Touch/No Touch Options

These types enable you to choose touch when you're certain that your price target will be touched or pick out not touch when you're sure there is a specific price level that will be left untouched during your trading period. Broker platforms generally set the price target, so you only need to decide whether that target will be touched or not. However, some brokers also use platform tradings that allow you to set your own price target. This can be one of your considerations when choosing a binary options broker, as both provided and self-made price target come with their own pros and cons.

If you trade in this kind of broker, you can directly analyze the current price movement to choose between touch or no touch. There is also an option to arrange the expiry time, so you can freely set the time limits for your options.

Touch/NoUnfortunately, the available instruments will be limited when using this options. Some of the limited instruments are only able to be traded in certain market sessions. Apart from this setback, this kind of touch/no touch options is still counted favorable for you don't need to bother about setting the price target. This way, you only have to assess the expiry time and  touch or no touch possibility for the given price target, making your binary options trading simpler and easier.

On the other hand, Binary.com provides its own trading platform to furnish their trading conditions with distinct features that set it apart from other binary options brokers. Touch options in this broker is also available with two alternatives, touch and no touch. Binary.com allows you to set your own desired price target, unlike the previous broker that provides its own price target. It certainly gives more freedom to your analysis, as for price target, option choice, and expiry time are all set by you.

Touch/NoHowever, it may not be suitable for you if you're looking for simplicity in trading. You will need more time to analyze the proper price target and the right type of option to make your trade profitable. This condition can tire some traders and risk them to just place any price target without doing some proper analysis. If you're not prepared to make a good price target, you may end up not using any measurement at all. It may take a lot of effort, but this broker has a lot of instrument choices even when you trade with touch options. Also, there's no time limitation in which you can use some of those instruments.

 

One Touch Options

One Touch Options can be the name of a set of touch tradings that include touch/no touch in certain binary options broker. But some of them use this label to name their specific touch option that only allows you to choose touch. There isn't no touch option available here, so you must be really sure that the price target will be touched before the time expires. Here, you only have to set the expiry times and the capital. Choosing this option can generate high returns ranging from 100% to 500%.

But, it's highly recommended that only professional traders should use One Touch Options to trade live, as brokers tend to set the price target in much more extreme levels than what they set in usual touch/no touch options. It's very dangerous to place a touch option with this type if you're not really sure, since you can lose all of your capitals in just one moment. Although it promises a really high profit returns, you don't need to try your luck if you're not certain about your analysis.

Trading platforms offering this option can be found in 24Option. As one of binary options brokers using a TechFinancials platform, 24Option enables One Touch Options that include touch/no touch and high yield option. High yield option is provided with high returns and extreme price target, based on the instruments and when tou place your option. Another condition that make this option more tricky is that 24Option opens this type only for certain trade sessions where prices move in high volatility. However, if you think about it again, it actually helps you since wide price ranges give more posiibilities for the price target to be touched.

High

According to the platform above, EUR/USD is available for One Touch Options with 350% profit rate. There are 82 pips differences between the current price and the price target. If you place $500 as your capital, you must be really certain that there will be a high jump in EUR/USD to earn that 350% profit. Your expiry time also needs to be set properly so that you don't close that option in an unfortunate position that leads you to lose this option. As what's displayed in the platform, you will gain $2.250.00 if you're in-the-money but you'll also lose all $500 if EUR/USD never touches the target price when the time expires.

 

3 Things to Consider When Touch Trading

Touch trading in binary options is clearly related with using touch/no touch options and One Touch Options as your trading type. You can pick out one of these option types for your trade when price movement is fluctuative. That way, you're able to take advantage of price volatility since the price target only needs to be touched once during your trading period. It may come easier than high/low options, but the presence of price target has the potential to give you a hard time in doing your analysis. To sort out this problem, it's probably better for you to consider these three things before deciding to choose touch options for your trade:

 

1. Broker's trading platform, terms, and conditions for touch options.

Just by recognizing a broker's trading platform, you can usually tell what it's going to offer, like what kind of touch options feature it has. It's still possible that brokers set some additional rules as they probably need to adjust their trading platform with their own terms and conditions. Therefore, it's necessary for you to understand your broker's conditions when it comes to trading types. There are some considerations to take before determining which broker offering the best touch options solution, such as price target, profit rate, instrument choices, and the available trading times. It's also important to remember that touch options are not the only specifications that you have to think about when choosing the right binary options broker. There are other conditions like regulations, instrument variations, payment methods, and many other features that you really need to pay attention to.

 

2. One Touch Options will always put your options in higher risks.

Compared with the usual touch/no touch options, One Touch Options come with higher profit rates but smaller chance to achieve it. It's best for you to practice your binary options trading by making a good trading system completed with proper money management. Don't try to risk your account without trying this option in demo account or small capital in real account. For starters, you can try to get used to touch trading by using touch/no touch options before trying the One Touch Options.

 

3. Price volatility is important to determine your success.

In setting the price target, you will have to be able to predict the market volatility. Will it increase when your option is placed? Or will it decrease after you open your trade? If your trading instrument generally shows high volatility movements in the time you use touch options, you can set a higher or lower price target in a broader range, or considering to touch when your broker set an extreme price target. In contrast, you may consider to restrict your price target when the volatility is low, or choosing no touch options if your broker set the price target in wide range.

In conclusion, using touch options to trade binary options are very profitable if you can adjust it with your skill to trade in volatile market. If you're a beginner, choosing touch/no touch option will help you a lot in facing the price volatility. Meanwhile, you can try to make benefit of One Touch Options if you're already a professional trader.