Advantages of One Touch options trading
One Touch option is a unique tool which is highly popular among Option traders. If you are looking for a trading option to work with 7 days a week, One Touch options are all you need. These options can be traded when the major markets are closed. Learn more about One Touch options trading.
An attractive characteristic of this type of options is the huge payouts they provide. If you predict correctly and the price of the asset touches the goal rate at the time of termination, your trade will end "in the money" and you will be paid out the predetermined payout, generally between 250-560%.
Let us look at an example:
If EUR/USD closes at 1.37230 on Friday, then you will have two options: one option will be for a Call, meaning that EUR/USD will rise and reach 1.38130 at least once in the following week, and the other for a Put, meaning that it will fall to 1.32130 at least once in the following week. All you need to do is to select the direction that you think the asset will move, enter your investment amount and then wait for the trade to strike the target price one time throughout the life of the trade. If your prediction is correct, you will be paid out.
One Touch options are purchasable on Saturday from 12:00 to Sunday 19:00. The options are traded from Monday at 12:00 to Friday at 17:10.
They are sold at a fixed price – which is not the current market price.
You can only purchase this option based on the prices the company provides. You cannot set your own price. The rates the company takes into consideration in determining if goal was reached or not are those offered by Reuters.
If the price at that time on any day is equal with or above the goal rate on a Call option or below the target rate on a Put option, then the option will expire "in the money".
If the price at that time on any day does not reach the goal rate, then the option will expire "out of the money".
One Touch options are "all or nothing": if your trade expires "in the money" you'll get the full payout. But if it is "out of the money," you'll lose the value of the trade.
The promised payout will be transferred to the traders account on the option expiration date (Friday at 20:00); even if the terms of the options have been realized before the end of the period.
See Also:
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