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Derivatives

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  • August 17, 2022
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No-Touch Option

An opposite type of touch option (and a binary option) that pays a fixed amount if the underlying price never trades at or beyond the touch-level and nothing if it does. This option allows traders to bet that the underlying price will not touch (or break through) the target price (that is usually set by a broker), but will remain below or above that level over the term of the option.


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