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11:14 am
July 4, 2010
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trading
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| Member | posts 17 |
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I am surprised how no one mentioned about
no-touch options here. It is, in fact, the first thing that comes to mind when
you talk about touch options. In no-touch options, the investor receives a
payout if the price of that option has not surpassed or reached the barrier set
by him till its expiration point. Thus, this option can result in only two
outcomes. Firstly, in case the price reaches the barrier, the investor will
lose his invested premium. The second outcome is when the barrier level is not
breached in which case the trader will receive the payout that was initially
agreed upon while formulating the contract.
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11:16 pm
June 29, 2011
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optionwise
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| New Member | posts 2 |
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Aren’t no-touch options the same as range options then?
Because in range options too, the trader makes a prediction asserting that the
price of an underlying asset will remain within a predetermined range until
expiration as far as I understand, that is what no-touch options are also all
about.
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11:23 pm
June 29, 2011
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Sharad
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| Member | posts 5 |
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Yes, you’re right. Range options are another name of
no-touch options. There are no major differences between the two…just that
there are many categories of touch options are no-touch options are considered
one of them.
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11:34 pm
June 29, 2011
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Susan
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| New Member | posts 1 |
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I think more specifically you could equate double no-touch
options with range options. It is in double no-touch options, that you set two
barriers so in a way you are predicting that the price will stay within those
barriers i.e. within that range. When you talk about just no-touch options,
there is no range since you are simply estimating that the price won’t break
one barrier.
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