Touch no touch binary options

Stock Charts Tablet

As we have often mentioned in our articles, there are several different types of binary options; each Broker has its own offer, that varies from Broker to Broker. This means that some Brokers will offer you some types of binary options, while others do not. For this reason, knowing all the types of Binary Options is very important, so that you will be able to decide at which Broker you want to register.

We will analyse the various types of binary options available; in this article we are going to analyse the “Touch or  No Touch binary options”.

 Stock Chart on Tablet

Touch or No Touch Binary Option

 

The Touch no touch Binary Options is very similar to the One Touch Binary Option but has a substantial difference. In fact in this case, you have to predict if the Prices will reach a certain value (That is fixed by the Broker and can be higher or lower than the current value) or not reach. That is the difference: in this case, you can predict if the Prices will or not will reach the fixed value, while with the One Touch Binary Option you have only to predict if the Prices will reach the fixed value (So with the One Touch in case that you believe that the Prices will not reach the fixed value, you can not invest on the One Touch Binary Option, while with the Touch or Not Touch you can).

If you think that the Price will reach this fixed value (That can be higher or lower), you can invest the amount of money that you want on the Touch Binary Option; whereas if you believe that the Prices will not reach the fixed value (That can be higher or lower), you can invest the amount of money that you want on the No Touch Binary Option. Firstly you have to choose an asset (Stocks, Commodities, Indices, Forex), then you have to predict if the Price of the chosen asset will reach at least one time or not reach the fixed value (Fixed by the Broker), during the Expiry Time (That you can choose from the ones available). Remember, the Price has to reach the fixed value just one time, so it does not matter the value of the Price after the Expiry Time (It can be higher or lower than the fixed value).

In case that you have invested on a Touch Binary Option, if the Prices reach the fixed value (Also for just one time) you will earn the Payout (That is already fixed and that you know from the beginning) whereas if the Prices will not reach the fixed value, you will lose the money invested (Or a part of them). In case that you have invested on a No Touch Binary Option, if the Prices do not reach the fixed value you will earn the Payout (That is already fixed and that you know from the beginning) whereas if the Prices reach the fixed value (Also for just one time), you will lose the money invested (Or a part of them).

Candlestick chart with studies

Here an example:

Let’s say that the actual price for a share of McDonald’s is $80; the Broker has fixed the value to reach for the Prices and is $83. We believe that the Prices will not reach this value, so we invest 100 euro on the No Touch Binary Option. During the Expiry time, in fact the Prices do not reach the fixed value and the highest value reached by the price is $82,65. So in this case, we will earn the Payout; while if the Prices had reached the fixed value (At least one time), we would not have earned the Payout but we would have lost the money invested. Whereas if we had invested on the Touch Binary Option, because we believed (wrongly) that the Price would have reached the fixed value (But it did not happen), we would have lost the money invested.

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