Binary Touch Options

Binary Touch Options – the perfect investment tool

Binary Touch Options are a simple alternative to trading Forex on spot or vanilla options. It is the perfect tool to express your opinion about future price moves of a particular currency pair. The potential payout and initial premium paid or received are fully transparent and visible before the trade is placed, making this type of Forex Option the preferred choice for many traders and investors.

Binary Touch Options at Saxo Bank are unique because they can be bought or sold on live streaming market prices even before they expire or exercise.

Put a limit on your potential loss

When opening a Binary Touch Option position there is a limit to your potential loss; when you buy an Option it is the Premium and when you sell an Option, it is the payout amount minus the premium you received. At the same time you do not have to worry about manually exercising the option if and when the Trigger level is reached, this happens automatically and the Option is cash exercised directly to your account.

Advantages of trading Binary Touch Options with Saxo Bank

Simple to understand, easy to manage risk
Full pre-trade transparency to potential payouts and drawbacks
Predefined limit on potential gains and losses
Live streaming prices from 100 to 25,000 notional payout amount
Like Vanilla Options, can be bought or sold
Automatic cash settlement when hitting the trigger level / expiry
Traded on intuitive FX Options Board in SaxoTrader

Watch Video Tutorial to learn basic strategies available with Binary Touch Options at Saxo Bank

See all the benefits of Binary Touch Options in this 2 minute introduction video. See how easy it is to choose a Binary Touch Option to express your opinion on the market.

Two typeS of Binary Touch Options

With Binary Touch Options you can always find a position that matches your investment needs. Saxo Bank offers two types of Binary Touch Options:

One Touch (OT): Buyer pays the premium at initiation and receives the fixed payout if spot reaches the trigger level at any time prior to Expiry. Seller receives the premium at initiation and pays the fixed payout if spot reaches the trigger level at any time prior to Expiry.

No Touch (NT): Buyer pays the premium at initiation and receives a fixed payout if spot never reaches the trigger level prior to Expiry. Seller receives the premium at initiation and pays the fixed payout if spot never reaches the trigger level prior to Expiry.

The price of the Binary Touch Option, the Premium, is expressed as a percentage of the potential payout.

Unlike FX Vanilla Options, the price of the Binary Touch Option, the Premium, is expressed as a percentage of the potential payout.

FX Binary Touch Margin Rules

Binary Touch Options are not tradable on margin/with leverage.

When buying a Binary Touch Option, you pay the initial full premium and the full value of the position is immediately reserved on your account but it will not be available for trading or as margin collateral.
When selling a Binary Touch Option, you receive the initial Premium, but the potential payout is immediately reserved on your account so will not be available for trading or as margin collateral.

Read more about our trading conditions here

Trading Strategies

When you want to trade on your belief that a certain price movement will happen through a Binary Touch Option, Saxo Bank will offer a strategy that matches your investment needs. For example, you believe that the spot price of a given currency pair, within a chosen time period, will:

go up AND reach a certain level
will NOT reach a certain higher level
go down AND reach a certain level
will NOT reach a certain lower level

When expressing your view on the market, all you have to decide on is whether the price will reach or not reach – touch or not touch - a particular price called the “Trigger level”, what the time horizon is, whether to go Long or Short, and the amount of the potential payout of the Binary Touch Option. It is that simple!

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Binary Touch Options