An introduction to FX One Touch Options

A FX one-touch option is a type of foreign exchange derivative that pays a fixed amount if the underlying currency pair reaches a predetermined price level (the barrier) at any time before expiration.

It offers a binary outcome - if the barrier is touched, the option pays out; if not, the option expires worthless.

Traders use one-touch options to speculate on whether a currency pair will reach a specific level, without needing to predict the exact price at expiration.

These options are popular for expressing views on market direction and volatility, especially during periods of anticipated market movements.

One Touches.pdf

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