Once the trigger level has been reached, the trader will receive his payout.
This type of option is preferred when an investor is sure that the assets price will perform a strong move in a certain direction and will hit the trigger value, disregarding whether the price jump is sustainable or the market will retrace.
Unlike the standard binary option where you only have to predict whether the price will go up or down, here both the direction of movement and the trigger level are predetermined some brokers allow traders to set these levels.
You only have to decide whether the conditions will come into fulfillment. Also, these options are generally available for purchase during the weekend with the payout condition being to reach the trigger level within the next working week.
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No Touch The no-touch option works in the opposite fashion to one-touch options. Here you wager that the underlying asset will not reach a certain price level.
Just like the one-touch option, you, or your broker, select a certain price level above or below the spot current price and bet that the price will not reach the determined level within the expiration period. Both touch and no-touch options offer a higher payout, if the conditions are harder to fulfill.
One-touch options will pay out more money, if the trigger is further away from the spot price.
Conversely, no-touch binary options offer higher return the closer the trigger is.