Binary trading is a simple trading method based on duality. Whatever you decide, there are only two possible outcomes – either you are right or wrong. In additional to traditional and the most widely known Call/Put options, there are a few more types. Even though they also give you opportunity to be right or wrong, touch and no touch options still slightly differ from Call/Put options.
What are touch and no touch options
With traditional Call/Put options, you have a price of an asset at a given moment, and you are supposed to predict whether the asset will go above or below that price over a certain period of time.
Touch and no touch options are also based on duality, but they have a different concept. With these options, you are supposed to choose a target price of the asset first. After this, you are required to choose either “touch” or “no touch” option. If you choose “touch” and the asset reaches or passes the determined price, you win the trade. Similarly, if you choose “no touch” and the price does not reach the predetermined value, the trade will end in the money.
Advantages of touch and no touch options
Even though they are similar to other types of options because of the binary approach, touch and no touch options have some advantages over them.
First of all, they can be used in the cases of high market volatility and unpredictability. In such cases, it can be difficult to determine for sure whether the price will rise or fall under a certain value, because the changes are fast. Still, you can predict with a certain degree of certainty whether it will or will not reach a certain price. Because of this, touch and no touch options can bring you more certain earnings and more successful than unsuccessful trades.
Second, most brokers today provide these options in addition to other types. This means that, if you want to trade this way, you do not have to find some special broker, but you can stick with the one you already trade with. Even binary robots, like Brit Wealth System and many others, offer this type of options and you can trade them automatically.
Then, touch and no touch options allow you a certain amount of control over your trades and a higher degree of customization. You can predict how the price will move with much greater certainty than with other types of binary options. This way you will increase the degree of success in your overall trades and earnings.
Requirements for touch and no touch options
It goes without saying that you need to be registered with a binary broker and have a deposit on your account before you start trading touch and no touch options. However, keep in mind that this is not all. You need to keep track of the changes in the market so you can determine the correct target price and successfully predict whether the asset will touch it or not, and whether you need to trade touch or no touch option. Technical analysis can help you with this, and when you learn at least the basics of it and apply it to this type of options, you are likely to achieve success.