Difference between revisions of "Category:One-touch options"
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One-touch options are a type of binary | One-touch options are a type of binary option that allows traders to profit if the price of an underlying asset touches a predetermined level at least once during the life of the option. These options are popular among traders who believe that an asset will experience a significant price movement in the near future, but are unsure of the direction of that movement. | ||
In a one-touch option, a trader selects an asset and a price level that the asset must touch during the life of the option. If the asset reaches that price level at least once before the option expires, the trader receives a predetermined payout, regardless of where the price of the asset ends up at expiration. | |||
One-touch options are | One-touch options are considered to be riskier than high/low options, as the price of the underlying asset must move a certain amount in a specific direction in order for the option to be profitable. However, because of the higher risk, one-touch options typically offer higher payouts than high/low options. | ||
There are | There are two types of one-touch options: the "no touch" option and the "one touch" option. In a no touch option, the trader selects a price level that the asset must not touch during the life of the option. If the asset touches that price level at any point during the life of the option, the option is considered a loss. In a one touch option, the trader selects a price level that the asset must touch during the life of the option. | ||
One-touch options can be traded on a variety of underlying assets, including stocks, indices, commodities, and currencies. As with all binary options, traders should carefully consider the risks and rewards before entering into a trade, and should only trade with funds they can afford to lose. | |||
Revision as of 15:19, 8 April 2023
One-touch options are a type of binary option that allows traders to profit if the price of an underlying asset touches a predetermined level at least once during the life of the option. These options are popular among traders who believe that an asset will experience a significant price movement in the near future, but are unsure of the direction of that movement.
In a one-touch option, a trader selects an asset and a price level that the asset must touch during the life of the option. If the asset reaches that price level at least once before the option expires, the trader receives a predetermined payout, regardless of where the price of the asset ends up at expiration.
One-touch options are considered to be riskier than high/low options, as the price of the underlying asset must move a certain amount in a specific direction in order for the option to be profitable. However, because of the higher risk, one-touch options typically offer higher payouts than high/low options.
There are two types of one-touch options: the "no touch" option and the "one touch" option. In a no touch option, the trader selects a price level that the asset must not touch during the life of the option. If the asset touches that price level at any point during the life of the option, the option is considered a loss. In a one touch option, the trader selects a price level that the asset must touch during the life of the option.
One-touch options can be traded on a variety of underlying assets, including stocks, indices, commodities, and currencies. As with all binary options, traders should carefully consider the risks and rewards before entering into a trade, and should only trade with funds they can afford to lose.
Pages in category "One-touch options"
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