What Are Touch Options?

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Touch/No Touch options operate in a matter different from conventional options. The biggest difference is that the expiry time of an option that is in the money is not predetermined. The option will be in the money as soon as the price of an asset reaches a predetermined barrier, so a winning option might expire prior to the predetermined expiry time. If the option never reaches barrier, the option is not in the money and the trader will lose his investment.

Download PDF

Touch/No Touch options operate in a matter different from conventional options. The biggest difference is that the expiry time of an option that is in the money is not predetermined. The option will be in the money as soon as the price of an asset reaches a predetermined barrier, so a winning option might expire prior to the predetermined expiry time. If the option never reaches barrier, the option is not in the money and the trader will lose his investment.

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