- One-Touch Option
- 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: 1) the barrier is breached and the trader collects the full payout agreed upon at the outset of the contract, or 2) the barrier is not breached and the trader loses the full premium paid to the broker.
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. These types of options are becoming more popular with traders in the commodity and forex markets.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Double One-Touch Option — A type of exotic option that gives an investor an agreed upon payout if the price of the underlying asset reaches or surpasses one of two predetermined barrier levels. An investor using this type of option is able to determine the position of… … Investment dictionary
One Touch (song) — One Touch Single by Mini Viva Released 9 May 2010 Format Digital download … Wikipedia
Double No-Touch Option — A type of exotic option that gives an investor an agreed upon payout if the price of the underlying asset does not reach or surpass one of two predetermined barrier levels. An investor using this type of option pays a premium to his or her broker … Investment dictionary
Touch football (American) — Touch football is a version of American football originally developed by the U.S. Navy in the 1940s in which the players tackle the individual carrying the ball only by touching him with one or two hands, based on whether one is playing the one… … Wikipedia
Touch the Dead — Developer(s) Dream On Studio Publisher(s) Eidos Interactive … Wikipedia
Option offense — Morris Knolls High school running an option offense The option offense is a generic term that is used to describe a wide variety of offensive systems in American football. Option offenses are characterized as such due to the predominance of… … Wikipedia
One Laptop per Child — OLPC redirects here. For other uses, see OLPC (disambiguation). One Laptop per Child Formation January 2005 Type Non profit Headquarters Cambridge, Massachuset … Wikipedia
Touch for Health — Die Angewandte Kinesiologie oder kurz Kinesiologie (engl. applied kinesiology, nach griech. κίνησις, kinesis, „Bewegung“ und λόγος, logos, „Wort, Lehre“; nicht zu verwechseln mit engl. kinesiology für Bewegungslehre) ist ein wissenschaftlich… … Deutsch Wikipedia
Binary Option — An option that pays out a fixed amount if the underlying financial instrument which the option is based reaches the strike level either at expiry, or at any time during the life of the option. Also called all or nothing option, digital option… … Financial and business terms
iPod touch — Un iPod touch de 4e génération Les informations décrivent la génération la plus récente … Wikipédia en Français