Touch or No Touch Binary Options Trades and Strategies
The classical Touch/No Touch trade is easier to profit from. It involves three key steps. The first is to identify the direction that the asset will assume. Secondly, the trader must have an idea of the range of movement in the preferred direction. The third is to set the price target for the trade, which will usually be between the point at which the analysis is made and the extreme of the price action. Once the first two steps are properly carried out, the third step is a breeze.
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As noted, with one touch trading, you are predicting whether an asset’s price will reach a certain level before the trade expires. This level can be above the starting price or below it. Your trade becomes immediately profitable if the target price is reached. The trade is closed and the payout – you’ll know the potential return and corresponding payout ahead of time – is deposited into your account.
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Hedging is a technique and strategy that traders use to offset potential losses. In commodity trading businesses and individuals use futures contracts to hedge against sharp increases or decreases in the prices of raw materials. In stock trading investors may hedge using options or some other derivative instrument. With One Touch options I recommend using another binary option as a hedge. By doing this you can greatly reduce the potential losses associated with the trade and enhance potential returns. The caveat is that you need to do some math to make sure the hedge will protect you from incurring maximum loss without eating up your projected gains.
To get started trading you first need a broker account. Pick one from the recommended brokers list , where only brokers that have shown themselves to be trustworthy are included. The top broker has been selected as the best choice for most traders.