One-Touch Option

A one-touch option is a type of option that pays off if the underlying asset reaches a certain price on or before a specified date. The strike price of a one-touch option is the price at which the option will be exercised if it is in the money. One-touch options are often used by investors who are looking to protect themselves from a sharp decline in the price of an asset.

One-touch options are typically more expensive than other types of options, because they have a higher probability of being exercised. However, they can also be more profitable, if the underlying asset reaches the strike price.

One-touch options are often used by investors who are looking to trade on short-term price movements. They can also be used by investors who are looking to hedge their positions against a sharp decline in the price of an asset.

One-touch options are a relatively complex financial instrument, and investors should carefully consider the risks involved before trading them.