What is a One Touch Option?
The One Touch option is a special type of Binary Option that is available outside of normal trading hours (including on weekends). The price of the underlying asset will therefore not change on your screen. Depending on the desired underlying asset, the trading hours for which you can open a One Touch Option will change. One Touch Options only lead to a payout if at the point when the option is evaluated, the price has reached or exceeded the goal rate.
How to trade a One Touch Option?
1. Expiration time
The expiration time for One Touch Options are fixed. This has the advantage that you do not have to worry about the expiration time. A One Touch option always expires on the last trading day of the week, i.e. Friday, at a specific time, usually at 19:10 GMT.
2. Amount of Investment
The amount of investment for this type of Binary Option is stated in units. As a rule, one unit has a value of €50.00. You can choose to invest in 1-10 units.
3. Call or Put
Finally, you must, as with any option, choose a direction. The goal rate for the option is displayed on the side of the chart.
You have determined all of the factors and can now complete your One Touch Option trade order.
How is the outcome determined?
On each trading day, the price of the underlying asset is measured once a day at 17:00 GMT and on expiry of the option. Only these measurements are used for determining if the criteria of the One Touch Option has been fulfilled.
A correct prediction leads to the reimbursement of your initial investment plus the agreed upon payout. An incorrect prediction leads to the loss of the initial investment.