Trading Double One Touch Options
One type of trade you can place with binary options is called Double One Touch. With a Double One Touch trade, you select two trigger points. If your financial instrument touches either of the trigger points you choose during the expiration period, you win your trade. If neither trigger is touched, then you lose your trade.
This is a useful type of trade when you want to hedge your bets.
Remember however that when you hedge your bets, you usually don’t get a very high payout. Big payouts aren’t always the way to success, though—consistency is usually key, so if you can build a consistent system around Double One Touch as a strategy, you may become profitable over time.
When To Trade A Double One Touch Binary Option?
When should you use a technique like this? A good time would be during market consolidation when you expect a breakout, but you don’t know which way the breakout is going to go.
Let’s say you trade futures, and one of the techniques you use is price action. Perhaps you have a price action formation which tells you that the market is about to make a breakout, but you don’t have any way of knowing whether the price of the commodity you’re trading is going to go up or down based on your price pattern—you just know it’s likely to start trending in one direction or the other.
A Double One Touch trade would allow you to place an entry on either side of the current price so that if price goes up or down to the extent that you’ve wagered within the expiration time period, you win your trade. This means that if the price of the commodity goes up and touches your trigger, you win, and if the price of the commodity goes down and touches your other trigger, you still win.
You win as long as the price breaks out either up or down.
This doesn’t mean that you win no matter what the market does of course.
There’s no way of trading which allows you to be profitable in all scenarios. Price could simply continue to consolidate, and if there is no breakout up or down, you will lose your trade.
If price goes up or down outside your expiration period (say for example afterward), you still lose because you’re out of your trade by that point. Even though hedging your bets can increase your chances of winning a trade, it can’t guarantee you a win. So backtest and demo test any Double One Touch method you develop before you trade with real money.
Brokers Offering Double One Touch Binary Options
Not all brokers offer this kind of trade. We only recommend:
- www.marketsworld.com – well regarded as one of the best brokers in the industry, once your account is funded your personal broker can help you set up double 1 touch trades
- www.24option.com – everyone needs an account at 24option. Trade double one touch options and high yield returns with a lower initial deposit than bbinary.