As exciting as the trading binary options is, it nonetheless holds just for professionals one drawback: The trading binary options is in most cases only possible if the trader on the screen is active. The Binary options but One Touch Trade offers an alternative because it is available at weekends. This presentation differs from classic call and put trading. During must decide in classic variants of the investors, as the course develops until the expiration date of the option, is made at a One Touch with just one click, the decision as to whether the price will reach or exceed a certain value within the option period. The return praises the risk of conditioning a with.Because it is easier to predict the general direction for the course of an Underlying, as reaching a certain target price will be paid higher returns with One Touch. Yields are between 100 and usually 250 percent on capital employed. This is to the higher risk can expose customers, be taken into account.
1) Obtained with the High Yield Yield Kick
The one-click trading offers a subspecies: High Yield trading. With the high-yield trading income up to 500 percent are retracted. Correspondingly large but the risk of losing the capital invested. In High Yield trading price targets are correspondingly further derogation from the entry price. Usually it requires certain events in order to achieve a necessary course rash. Investors should be about the nature of high-yield bonds clear: The High Yield trading is highly risky because it is unsecured debt securities of issuers with a bad credit rating, which affects the likelihood of repayment of the bonds. The credit risk of these loans is particularly high compared to other bonds. Your high risk is compensated with the high coupon rate, the high yield. The High Yield trading should therefore only be used by traders who have appropriate experience in market analysis.
Conclusion: Attention! High Yield trading is highly risky. Profits may be up to 500 percent, however, the potential losses are also very high, since it is unsecured debt. High Yield should only be used by experienced traders.
2.) Against themselves with One Touch
What exactly are One Touch options? These options set to touch a certain price limit up or down. If the limit is reached, the trader has won. Not an exact forecast at a given time so plays a decisive role here. How is the course after touching with the predicted limit, is not decisive for the win. The course may in any direction switch back. A one touch option speculates on a particular direction, because only touching a certain price limit can lead to win option. There is a lot to do, which extends the success opportunities when One Touch Trading: The One Touch trading allows investors set against itself while still enter a profit — the so-called volatility strategy. Yields this trading form exceed the 100 percent mark. The condition is that the traders maintain two accounts with different brokers.
Conclusion: One Touch is a type of trade that relies on touching a certain price limit up or down. If the limit is reached, the trader has won. The further development of the course now no longer matters. A refined brand of One Touch trade: You can set up for themselves while still making a profit. Prerequisite are two accounts with different brokers.
3.) The volatility strategy: perfect for One Touch options
Trends are not always clear. Especially on equity, currency and commodity markets, there are high fluctuations, which can often be difficult to predict, which is often not clearly identify the direction of the rates and prices. To a trend seen , is difficult in these cases. At this point, the volatility strategy comes into play — a binary options strategy that is suitable only for the One Touch Trading. The idea of the strategy is to take advantage of higher price fluctuations. The direction of the courses do not matter — in contrast to the trend following strategy , which aims at an accurate overall prognosis. Volatility strategy can be implemented, by the trader buys a call and a put option on the same underlying. The strategy makes sense only in the field of One Touch options, because the potential profit per option should be more than 100 percent. Both options must have the same duration. The profit made when it after reporting of positive corporate data a larger increase in the share is on the call option. About the put option on falling prices, in turn, the total loss was achieved. The loss, however, tempered by the acquired call option.
Important facts about the volatility strategy at a glance:
- This strategy is intended for volatile (more erratic) markets. The One Touch trade is very suitable for this strategy.
- Customers benefit from strong price fluctuations.
- The direction of the course / price movement is unimportant.
- Strategy can be used only in high-yield area of commercial type One Touch
Conclusion: When volatility strategy, the trader buys a call and a put option on the same underlying. The strategy makes sense only in the field of One Touch options, because the potential profit per option should be more than 100 percent. Both options must have the same duration.
4.) Three Tips for One Touch
Tip 1: You benefit volatility strategy! Insert a put and a call option.
Tip 2: Take a beginner other trade options as the One Touch, the high risk entails. . The trend following strategy is more suitable for beginners
Tip 3: If you want to take a high risk, consider this: The more improbable the target price, the higher the potential return — sometimes up to 500 percent.