Binary options on touc, One Touch Options Explained

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At order initiation the client defines a target price level which is the strike price that makes the option mature with profit, i. ITM and the contract duration. At the same time the system automatically sets the second target price level which is strike that makes the option mature at a loss, i.

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OTM on the other side of the current instrument price and on the same distance from it. Client is setting the target price level by indicating the distance from the instrument's price at order start.

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Constraints apply to the strike distance that can be set. Each instrument has its own Minimum and Maximum strike distance.

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Client is setting the target strike within this range, which is automatically validated by the trading platform. A Touch Binary is active until any of the strike prices is reached. In case the option's underlying instrument price does not reach either of the strike prices during the entire period of contract's duration the option is cancelled without settlement i.

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Limitations applied to contract duration, contract amounts and exposure are identical to the ones used for regular Binary Options see table in Trading Conditions.