Comparison of option types (2) – Touch, No-Touch, and KIKO options
There are many types of binary options that you tin cull from on the marketplace:
Bear upon options
No-touch options, Classic medium-term high-low options offered by all brokers,
options from broker Stockpair, and many others.
Only which of these options is the all-time deal? Why should you choose a broker based on offered options and expiration times? In today’s article, you lot’ll read something about
binary options and in the next episode, we will look at
ladder binary options.
I Touch (Touch) binary options
One touch (or sometimes called simply Touch) options slightly differ from classic high-low binary options, only everyone certainly understands that. This time, information technology’s not about the cost ending above or below some toll level. We just need the price to
reach a certain level
in the fourth dimension frame that we cull. What happens likewise that doesn’t matter. Sounds complicated? Check out the following film and you will surely understand.
Every bit you can encounter in the moving-picture show above, the cost needs to come up shut to a certain level (defined before inbound the trade) and at least for a moment be the same as our target price and our merchandise succeeds – we
turn a profit. And so we do not care if the choice expired with a price somewhere far away. The price simply has to
the price level. Just if the price does reach this level earlier the expiration time, our trade ends every bit a loss.
No-impact binary options
no touch on options
work? As you lot may have guessed, this is the exact opposite. Thus, instead of choosing the toll level that we want to price to bear upon, nosotros choose the price level which the price
bear upon. Simply cull a price that volition not be touched.
- Signal A: Opening a NO TOUCH trade
HORIZONTAL LINE B: Price
get on this level
- POINT C: Option expires, price did not bear upon the line B and, therefore, we collect turn a profit!
I recommend these binary options especially if the asset is in a strong trend, or if it is stagnating.
Brokers offer impact options
One touch and No-touch binary options are unfortunately
offered by any brokers since the year 2018.
KIKO binary options
KIKO options operate on a similar principle. The trader selects either CALL or PUT, same equally is the case with affect options. So we are speculating on whether the toll touches a certain limit above or below the electric current toll. Just what is dissimilar is the fact that we are no longer bound by time.
This ways that if the cost does not touch either one of the levels (the IN THE MONEY level and the OUT OF THE Coin level) for let’south say 10 hours, and merely oscillates, we will yet accept an open trade. Profit offered for successful trade is corking. It’s always 82% in respect of all assets.
Brokers offering KIKO options
Stockpair is the only broker that used to offering this type of options. This is probably because they invented this type of binary merchandise.
Unfortunately, Stockpair does not exist anymore.
Advantages of this type of binary options
- With KIKO options, we are not jump by time
- Fourth dimension does not play big role even with affect options
- We can earn a lot with No-touch options if nosotros catch the trend
Disadvantages of this blazon of binary options
- The price may unexpectedly go in the wrong direction fifty-fifty if long-term prediction is correct