Fx window options

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A one-touch option is a type of exotic option that gives an investor a payout once the price of the underlying asset reaches or surpasses a predetermined barrier. This type of option allows the investor to set the position of the barrier, the time to expiration and the payout to be received once the barrier is broken.

Only two outcomes are possible with this type of option: This type of option is useful for traders who believe that the price of an underlying asset will exceed a certain level in the future, but who are not sure that the higher price level is sustainable. Because a one-touch option only has one barrier level, it is generally slightly less expensive than a double one-touch option.

Derivatives | Window Barrier Option

These types of options are becoming more popular with traders in the commodity and forex markets. Dictionary Term Of The Day.

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What is a 'One-Touch Option' A one-touch option is a type of exotic option that gives an investor a payout once the price of the underlying asset reaches or surpasses a predetermined barrier.

Double One-Touch Option Barrier Option Down-and-In Option Down-and-Out Option Exotic Option Knock-In Option Knock-Out Option Barriers To Entry Vanilla Option.

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