DOUBLE ONE-TOUCH OPTION

Exotic option in which the investor will receive the agreed upon payout if the underlying asset’s price attains or exceeds one of two preset barrier levels. Investors using this option can set the position of both barriers, expiration time, and amount of payout to be received. Either one of the barriers must be surpassed to generate profit and for the buyer to get the payout. The option expires worthless if neither barrier level is breached before expiration. The trader loses all the premium paid to the broker for putting up the trade.