Unlike the FX Vanilla Options, Touch Options are automatically exercised when the trigger level is reached any time prior to expiry. If the trigger level has not been reached during the live time of the option, a No Touch generates the payout, whereas the One Touch option expires automatically.
A Trigger (or barrier) level is considered reached if the spot mid-price of the currency pair reaches the Trigger level
If the option exercises, the payout is 100% of the amount of the base currency. If it expires without exercising, the payout is zero (0).
Touch Options may also be closed prior to expiration (before hitting the trigger price), giving you the opportunity to re-evaluate the exposure should your opinion on the market change over time.
All Touch Options that have not reached the trigger level by 10:00am Eastern Standard Time (New York Time) on the expiry day will expire.
In the case of an option’s expiry, the trade is either removed from the open positions view or / and opposite position with price 100% is inserted.
Please watch the FX Touch Options introduction clip
about general trading strategies.