Swiss forex brokerage Dukascopy Bank announced it is expanding its instrument portfolio by adding another type of binary options – Touch Binaries.
The broker has selected 18 currency pairs as an underlying asset and promises payout of up to 90%.
Touch binaries are different than the ordinary up/down binary options. They are binary options on forex currency pairs with 2 remote strike prices set around the open price of the option. When placing an order, the client defines a target price level (the strike price at which the option matures with profit) and the contract duration. At the same time the trading system sets a target price at which the option matures at a loss – on the other side of the current instrument price and at the same distance from it.
If the option’s underlying instrument reaches or exceeds the Profit strike level at any time prior to expiry – the option would be executed with profit, which is in-the-money.
If it reaches the loss strike level, the option will have an out-of-money outcome.
In case neither the profit, nor the loss strike are reached at the set period of time, the contract amount is returned to the client, without any gain or loss.
Currently the Touch binaries are only available in a demo environment, but Dukascopy says it will launch live trading shortly.
Dukascopy Bank, set up in 2004, is based in Switzerland’s Geneva and operated globally through offices in Zurich, Riga, Kiev, Moscow, Kuala Lumpur and Hong Kong. It is licensed as a bank and as a securities dealer by Switzerland’s Financial Market Supervisory Authority (FINMA). The company owns 100% in brokerage Dukascopy Europe IBS , e-payments provider Dukascopy Payments, both based in Latvia, as well as Japanese broker Dukascopy Japan K.K., formerly Alpari Japan K.K.