One touch trading has become very popular with traders in recent years, and a big part of that is because it is so simple to trade this way. However, that doesn’t mean that everyone should simply flock to these trades without understanding what they really are and how they work. The following are five of the basic things that you need to understand in regards to one touch trading before you start.
One Touch Options Have High Payouts
In addition to the simplicity, one of the other reasons that so many people like the one touch options is because of the possibility of a high payout. The payouts can be between 300% and 550% of the amount that you put into the trade. The allure of such a high payout is enough to draw in all types of investors.
Only Two Outcomes are Possible
With this type of option, there are only to possible things that could happen. The asset you bet on will reach or surpass the price you set during the period of the option or it won’t. If it does, then you will receive a payment. If it doesn’t, you lose the amount that you put into the option.
One touch trade options will expire once a day or once a week. They will expire daily at 17:00 GMT and on Fridays at 19:30 GMT. When you are making your trade, you will determine when you want to set your expiration. This is a short-term trading option, and you can see results very quickly, which is another one of the reasons it is popular.
Not Everyone Is Eligible
In some countries, you will not be able to use the one touch trading system, because it is against the law. When you are trading, make sure that you are dealing with a legitimate system, and that you are trading legally.
Not All Brokers Offer One Touch Trading
Even though it is popular, you will find that some brokers out there do not actually offer one touch trading. This is likely to change as the popularity grows. Until then, when you are choosing a broker to work with, and you want to make one touch trading a part of your plan, make sure they offer this option.
One touch trading is a fantastic way for traders to make money quickly. However, if they aren’t careful and if they do not take the time needed to understand the system and the market, it could also be a good way to lose money. Learn the way it works and trade with assets you are comfortable with. You can start with only one trade a week and then scale up as you gain more confidence.