Binary options one-touch trading 2020 - how it works

Binary options one-touch trading 2020: how does it work? Type of trading & possible alternatives Use strategy when trading now.

Many binary options brokers today not only offer simple call and put options as a type of trading, but also give customers the opportunity to use other types of trading, which can sometimes result in significantly higher profits. Another popular form of trading is called one-touch in the area of ​​binary options. Basically, the one-touch options work in such a way that the trader speculates on a specific price of the underlying, and that within the term of the options.

With the simple binary options, the trader only has to make the decision whether the price of the underlying at the end of the term (the option) is higher or lower than at the time of purchase. This decision must also be made for the one-touch option, but the trader must also determine which price the underlying can reach. In contrast to the simple binary options, it is sufficient if this rate is temporarily reached during the term, so it does not have to be reached exclusively at the end of the term.

OptionFair also enables its customers to do one-touch trading

first Alternatives to binary options one-touch trading

Of course, customers of binary options brokers such as BDSwiss or anyoption can not only pursue one-touch trading - instead, numerous other types of trading are available to them, which use different trading strategies for trading Binary options can be connected.

The classic in binary options trading: Call / Put

One of these types of trading is classic call / put trading, which was one of the first types of trading in Binary options trading was one of them. There are basically two directions in call / put trading: The trader speculates either on a rising or falling price of his chosen financial instrument by choosing the call or put option. However, the time window in which the expiry time should take place also plays a major role: If the price of a call option at the expiry time is above the entry point, the trader has made a profit - and of course the reverse is also the case.

As an alternative to the regular call / put option, traders can also speculate on reaching a certain price by trading the knock-in or knock-out options. The knock-in option can basically be divided into call and put: If the trader speculates on a rising price with a call option and specifies a certain limit, this must be touched or exceeded to achieve a profit. With the knock-out option, on the other hand, a distinction is made between call, put and range: if the trader expects a moderate increase in prices or a sideways trend, the call option should be selected in which the price does not touch the trader's limit or may fall short. With the put option, the price must in turn not be at or above the trader's limit, while the range value must be within the defined limit without touching it.

To the call / put Options also include the cash-or-nothing options, in which the trader loses his entire stake without loss protection in the event of a loss, but can expect a return of 100% on a profit.

The range - Trading for sideways trends

If there is no particular direction to be identified at the current price, it would be more of a gamble to speculate on a rising or falling price - instead experienced traders use range trading or the Range options where no specific prices or directions need to be reached - instead, the price must be within a certain range at the expiry time, which is defined by the broker through upper and lower limits. Since this creates a "corridor" for the price, this type of trading is also known as a corridor option, but the terms "limit" or "boundary" are often used instead of "range". These range options are in turn divided into two different groups: With the accumulated range option, the return depends on how long the price has been moving within the corridor, while otherwise the amount of the return is already fixed from the start.

The range options can be designed in a number of different ways, but there are some popular variations, such as the single-range options, in which the broker is paid out the value that is due to the movements during the term of the option of the course has accumulated within the corridor - if the course has moved outside the corridor, the profit is correspondingly narrower. The knockout range option is also popular: Here it is determined from the start how high the return on an option in the money will be. However, the price must not move outside the corridor - this would result in the loss of the entire stake.

Ladder trading for professionals

Ladder trading belongs to the newer types of trading and is rather designed for experienced traders who can examine the market precisely with the help of technical or fundamental analysis. Ladder trading usually specifies four to five different levels or "rungs" at which the trader can speculate. The yield increases with each rung: the rung that is most likely to be reached has a low return and the less likely it is to reach the rung, the higher the maximum return. Accordingly, in ladder trading, the trader first selects a certain base value and then the rung of the ladder on which the price will be at the expiry time or which the price will exceed. However, if the price is on the next highest rung at the time of expiry, the trade is also out of money and the trader loses its stake. Before inexperienced traders are exposed to such a high risk of loss, they should first gain experience with a non-binding and free demo account that many brokers offer.

Exciting variety: pair trading

One of the newest types of trading that has been added to the portfolio of various companies is pair trading: in contrast to ladder, call / put or binary options one-touch trading, traders do not speculate that the Price reaches or does not reach a specific point, but instead indicate which financial product can register the higher price at the time of expiry. In order not to make it too easy for the trader, two stocks or commodities with similar price trends usually compete against each other - and the less likely it is that the respective price will be above that of the other financial product at the time of expiry, the higher the possible return.

Speculation with current data There are numerous alternatives to trading with binary options one touch - traders should simply keep their eyes open and under certain circumstances with their favorite broker exactly about the offered ones Provide information about trade types and their advantages and disadvantages. The available alternatives include call / put trading, as well as range trading, ladder and pair trading.

Binary options one-touch trading 2020 - how it works

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