Range and touch trading are another form of trading the increasingly popular, and potentially very popular, binary options. Whilst many traders have been flocking to binary options trading as a way to make larger profits from simply predicting whether price will close higher or lower within a certain time period, the development of these variations of binary options can offer even higher rewards for those expiring ‘in the money’. Most traders will agree that profits of up to 85% on conventional binary options, within the lowest expiry time of just one minute, is one of the fastest and most rewarding way to speculate on the financial markets. There are, however possibilities to substantially increase this to up to 500% profit for those willing to speculate on how far price is likely to move over the course of a trading week.
Range trading in sideways or breakout markets
Range trading binary options is one of the most popular ways to make money outside of market hours. This form of binary options trading can actually incorporate 4 potential trades. The first of these is a range trade where profitable outcomes occur if the binary options expire outside of a predetermined range. The second of these is the opposite scenario, where the trader will be profitable if the options expire within this range. Additionally, there are two more exciting trades that are possible here; one is where price, at any point breaks through the range (regardless of where is closes) and the other is where it stays within the range for the lifetime of the option. The profits on all forms of range trading can vary but they are an excellent tool for traders who spot trends in sideways markets. Additionally, those who specialise in breakout trading and can spot the early signs of a trend will fare very well trading this type of binary option.
Big profits with binary options touch trading
Additional flexibility, and the chance to earn the biggest prizes in binary options trading, is offered by weekend ‘touch trading’. This is becoming hugely popular, not only due to the fact that the weekends are a great time for people who have regular jobs to trade, but also because the profits can be many multiples the initial investment. Whilst we all know that the markets are not actually open during the weekend, the markets for Touch Traders are created for individuals to purchase options over the weekend. The idea with touch trading is for traders to speculate that price will ’touch’ a certain level in the coming week. Usually these options are purchased over the weekend and expire with the close of markets on a Friday. If, however, price touches the predetermined price level at any point over the week, the trader will gain up to 500% profit.
A simple way to speculate on large market moves without a stop loss
Needless to say, the further away a touch level is set for the coming week, the larger the potential ‘in the money’ profit. For those traders who anticipate price swings, volatile markets or the release of significant news, these trades can be particularly effective. As with all binary options, both the amount which can be gained and lost are pre-determined before purchase and there are no terrifying margin calls or stop losses to be concerned with during the lifetime of the options. Not only does this allow traders to simply focus on the price action, but it also allows the risks to be managed easily and lowers the possibility to blow an account through any single trade.