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Touch option

Any specific type of barrier option or American binary option that pays a stipulated amount only if the underlying meets a set condition prior to maturity, for instance if the price of the underlying or another stipulated financial variable reaches, or does not reach, once or several times prior to maturity one or more instrikes or outstrikes, or one or more predetermined thresholds, as the case may be.

(1) Touch options include the one-touch option, the no-touch option, the double-one-touch option and the double-no-touch option. (2) A touch option is a specific type of path-dependent option.