Touch and Double-Touch
Examples of Touch and Double-Touch trades
Last updated
Examples of Touch and Double-Touch trades
Last updated
Below is an example of a Touch option. In this type of option, you configure a barrier price level at the start of the trade expecting the price to touch this level at least once during the trade term in order to win. The further away from spot you configure the barrier, the higher the payout offered.
Next we have a Double-Touch option. Here we can configure two barriers, above and below the spot price. Both barriers must be touched at least once during the trade term for a win. The further away you configure the barriers the higher the payout offered. Setting a double-touch option offers a higher payout reward because the price must touch both barriers instead of just one.
Placing the barrier(s) too close or too far away from the spot price will cause the barriers to reset. The trade will not accepted if the barriers are configured in a way that the advertised payoff is less than 10% or more than 400%. Bare in mind that in volatile markets, fluctuations can cause these limits to be breached while you wait for order execution so try and avoid placing trades too close to these limits.
