Where You Can Evaluate Your Money
Double No Touch Option
Double No Touch Options are options that allow the option buyer to pay a fixed amount according to the underlying asset not touching a certain two levels.
The party purchasing the option has the opportunity to earn a leveraged return. The option selling party gets the opportunity to generate more premium income than the regular option premium.
The Advantages of
Double No Touch Option
It has a different operating logic than Call / Put options and these options allow the buyer to receive a payment as a result of the option transaction.
Double No Touch options give the buyer the right to receive a payment if the exchange rates do not touch a specified level by any day until the maturity date.
The option buyer purchases the option by paying a sum of on the date of the transaction, and if the conditions of the option are met, the buyer receives a payment at the end of the term, if the conditions are not met, the buyer will not receive a return
The condition of this option is that the exchange rates touch the levels to be determined. If the exchange rates do not touch these levels, the option will be valid, but if it is, no returns will be made.
The greatest advantage for such options is that exchange rates do not touch the determined levels as a result of short-term sudden movements.