No-Touch Binary Options Strategy
Touch and no touch options are a great way for you to further customize your trading experience. Because there are only two different outcomes that can possibly occur, these are still considered to be binary options. You can be right or you can be wrong. There is no middle ground. Even though they are slightly different from the traditional call/put option, they are still a powerful tool that you can use to your advantage in the fast paced world of binary options trading.
The no-touch option is precisely the opposite of the one-touch option. In this trading method, a trader needs to predict that the price of a commodity will not reach its predetermined value.
When the price of a commodity does not touch the decided price, traders make a huge profit. Otherwise, they lose the invested amount.
No Touch Trading strategy
The no-touch trading method is generally used when the market is about to consolidate.
For a successful no-touch trade, you need to build a good strategy by examining changes in the market and the previous price movement of a particular commodity.
Using your binary options trading knowledge and the information, you can develop a no-touch trading strategy that can work in your favor—meaning, a strategy that can help you earn a considerable profit.
Example of No Touch Option
Here’s a simple situation where no touch option can be used.
Suppose you are trading on silver, and its current price is $25.05. The broker has predetermined its price to be $26.05 with an expiry time of 24 hours.
Now, if you believe that the price of silver will fall beyond its current price, you can opt for the no-touch option. If this same thing happens, you will earn a profit. However, if the price reaches or exceeds the current value, you will lose.
Conclusion
No-touch options offer a large payout, and you can make a huge profit. But without proper market knowledge, you won’t be able to analyze the market trend correctly. And you will end up losing the trade.
So, before choosing the no-touch option, create a successful strategy.