What is a One Touch Option?
One Touch Binary Options are a type of exotic option that is gaining popularity with traders in the Forex and commodity markets. One touch options are effective for traders who think that the price of an underlying asset will will attain or pass a specific level in the future irrespective if it will maintain or continue to exceed the specified amount. One touch options are also extremely useful during periods when markets are closed such as weekends.
Up to 500% Returns on your Investments
At VXmarkets, One Touch options are the way to make large profits with up to 500% return on your investment and with the right strategy can be a highly effective and profitable way to trade.
In regular binary options you predict the price movement irrespective of the actual amount i.e. the price only needs to change by one pip in the direction you predicted for the trade to be in the money. With One Touch, you have to reach the specific set price that was designated for the asset i.e. you need to predict if the price of the asset will at some point during the trade period will atleast touch or exceed the target rate and even if the price falls again before expiry the trade still ends in the money.
For example, if the EUR/USD closes at 1.35130 on Friday then the VXmarkets platform will offer two options, one for a “call” meaning that the EUR/USD will rise and reach 1.38130 at least once in the following week, or “put” meaning that it will fall to 1.32130 at least once in the following week.
One Touch and You’re “In The Money”
One Touch trades do not have to wait for the expiry time to settle – once the price of the underlying asset reaches or falls to the target price, that is – with the very first touch of the target price, you’ve earned your profit.
You can trade OneTouch options from VXmarkets Monday to Friday for expiration at 5pm GMT on the same day, as well as Saturdays and Sundays for expiration on the following Friday.
One Touch options offer you enriching financial trading because:
- They offer you incredible returns: from 150% – 500% per option
- They expire only once a day/week, at 17.00 GMT or 19.30 GMT on Friday
- They are sold at a fixed price which is not the current market price
- It is above the market price on a “Call” option
- Below the market price on a “Put” option
- OneTouch options are “all or nothing”: if your trade expires “in the money” you’ll get the full payout, if it’s “out of the money” you’ll lose the value of the trade
How Can You Trade OneTouch Options?
OneTouch options can be traded across the VXmarkets platform.
Click here to create your trading account.
They are sold in units and each unit costs $100 or €100 Monday to Friday. They are sold in units of $200 or €200 on Saturdays and Sundays. You can purchase up to five units of any single OneTouch option, and you’re free to purchase as many different OneTouch options as you like.
You’ll find OneTouch options for sale directly from the VXmarkets homepage or you can select “OneTouch” from the tabs menu.
Each individual OneTouch option will display the goal rate at which you’ll be “In The Money” as well as the return on investment which you can make.
How Does One Touch Work?
- Every trading day (Monday to Friday) from when the option is bought until it expires, the price of the option is checked once per day at 17:00 exactly inaccordance with the Reuters 17:00 sample rate
- If the price at that time on any day is equal with – or above on a Call option, or below on a Put option – the options sale price, 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”
- OneTouch options are settled every week at 19:30 GMT on Friday. At this time your returns for your successful trades will be deposited directly into your VXmarkets account
A One Touch Trading Example:
Asset : Apple. Spot rate 230. One touch rate 260. “In the money” payout 500%. Unit price $200. Units bought: 3.
In this example, if Apple appreciates to 260 or above at 17.00 GMT on Monday, Tuesday, Wednesday, Thursday or Friday it will expire “in the money” and a 500% profit of $3000 will be made. If it fails to reach this rate at any one of these times then the option will expire “out of the money”.
Trading OneTouch options is simple, exciting and enriching. To claim your opportunity to try OneTouch trading for yourself register now.