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.
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.
Read other important articles in the binary glossary.
(Risk warning: You capital can be at risk)