No touch binary option trading type is opposite of one touch trading type. Here a trader sets a target price that an underlying asset would not be able to reach within a defined expiration time.
For example, if a trader invests in a currency market and trades EUR/USD. The spot price is $1.11139 and the no touch price is $1.11186. It’s a two minute trade and a pay-off is set to 75%. As this strategy is opposite to one touch, the farther away a trigger price is, the greater the probability of a spot price to not reach it. Consequently there’s a greater probability of winning. Thus for greater profit payout, no touch trigger price is to be defined near the market spot price.
Similarly, double no touch binary option trading strategy includes two sets of no touch trigger points. Investor gets pay-off if either of the points is not reached.
With standard binary option trades, where traders have to decide a price direction for a particular asset without setting its boundaries, it’s possible to earn approximately up to 86% profit per trade. This percentage can vary from broker to broker because many other aspects must be taken into consideration. Usually with no touch and double no touch, profit margin is much higher. Traders can get up to 350% profit if trades end up correct and in some cases even more.
Double no touch binary option trading type is not recommended for beginners because it’s more risky and it requires better understanding about a market volatility.