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.
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