One Touch High Yield Strategy
When trading binary options you're going to find that the highest return rates come from One Touch trades. The reason for the higher payouts is the fact that these trades come with an increased risk level. With basic trades the range of price movement makes little difference. A single pip can cause a trade to finish in or out of the money. The range of price movement does matter with One Touch trades, so you'll definitely need a strategy.
In order to gauge the overall level of risk, take a look at the target price. Each One Touch binary options trade is going to have a target price that the actual asset price will need to touch or surpass once while the trade is live in order to yield a profit. Risk can be evaluated by noting the distance between the entry price and this target. The further the entry price is from the target, the riskier the trade is going to be.
Where strategy comes into the picture is in the process of selecting an asset that is capable of covering the distance and touching the target price. There are two things to look for - either a steady trend in the necessary price direction, or some type of upcoming market information that would have the power to spike the price high or low enough to make it profitable. One Touch binary options trades typically last a week, a fact which is beneficial to the trader because it allows sufficient time for a touch to occur.
Both technical and fundamental analysis are going to be required. On the fundamental side be watching for any major market news that could impact the price. On the technical side, closely examine past price movement. You'll need to know how close the entry price and target are to the highest and lowest historic prices. Whenever the asset price is close to one of these, expect limited price movement. It's not that an asset price cannot exceed it's record high or low, just that this does not happen often enough for you to bank a binary options trade on it occurring.
On the flip side, if the asset price happens to be near its record high or low, you could certainly trade a One Touch with a forecast of price movement in the opposite direction. All assets have a middle ground that they tend to retract back to. Whenever the price is almost fully extended then you can expect that at some point it will reverse direction and move back towards its comfort zone. This may very well be the best setup of all for a One Touch binary options trade.
One Touch trades are not always easy to win. If they were, you wouldn't be offered return rates of 200-650%. There will definitely be some work required in the analysis department if you're going to profit from this type of binary options trade. The good news is that any effort put into these trades will certainly be rewarded when the trade finishes in the money and your account is credited with a large amount of profit.
