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December 27, 2012 – 6:17 pm | One Comment | 5,996 views

Banc De Binary, which is headquartered in the City of London, is regarded by many experts as one of the most professional binary options trading brokers on the Internet. The company started operations following the …

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Introduction

Binary options have carved out a niche focusing on known risks, straightforwardness, and a de-emphasis on volatility.

Trading Basics

Once the options trader has registered his details online and completed his deposit, he is then ready for trading binary options.

Trading Strategies

The straddle is one of the best strategies in binary options trading. The trader is looking to place a Put as high as possible.

Risk Management

One of the most important considerations for any trader is how to manage risk as loss is always a possibility in trading.

Fundamental Analysis

Fundamental analysis looks at how outside influences like natural events can affect prices and serves as essential tool.

Home » Trading Basics

What are One Touch Binary Options?

Submitted by on November 24, 2012 – 4:10 pmNo Comment | 2,068 views

A one touch option is a binary option that pays off if the underlying asset reaches a specific level by a specific time.

In this case, the trader is not just choosing whether a price will rise or fall by a stated time, he is deciding whether it will touch a set barrier at any time during the period of the trade. Due to the additional specificity involved, this type of trading can attract returns as high as 500%.

For example, the current commodity price is $80.50 and the trader sets a limit of $81.00. If he purchases a one touch option, he will be in-the-money if the price touches that level before the option expires. When it does hit the limit, the option closes and the trader receives his payout; it does not matter what happens to the price after that.

If the price does not reach the stated level before the expiration of the contract, the trader will lose and forfeit his stake.

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