Unlike the ‘vanilla’ digital options, Touch Options are regarded as exotic options as these options are slightly more complex. When trading touch options, profit will be paid if the price of the chosen asset will reach or surpass a predetermined barrier. If the asset failed to reach the barrier, the trader will lose the full amount he invested.
Upon entering a touch option, the trader will see three rates, the orange rate specifying the market rate, a higher rate (touch-up) and a lower rate (touch-down).
Entering a touch-up option, the trader will profit 260-550% on his investment if the price of the asset at the expiry time will be at, or higher, than the specified higher barrier.
Entering touch-down trades, the trader will profit if the price of his chosen asset will be at, or lower, than the specified lower barrier.