A No Touch Option is a binary options tool in which a trader needs to speculate that a certain asset will not arrive at a predetermined rate during the whole duration of the option’s lifetime.
Binary options trading usually revolves around the act of speculating on whether the expiry price of an underlying asset will be higher or lower than the strike price, by the end of a given time frame.
Trading a No Touch Option not only revolves around trading within a specific time frame, but also involves speculating that a certain option will not reach a predetermined market price during an pre-set duration.
One should note that the option can expire should the market rate reach the predetermined rate at any point during the option’s life.
A No Touch Option has a predetermined payout rate in the event of a win, and the trader will lose the investment amount in case of an incorrect prediction.
An example of such a trade involves placing a trade on a certain asset and stating that it will not reach 1.35276 during the option’s life. If it does not, the trade is In The Money. If it does, the trade is Out Of The Money.