One Touch and No Touch Spot Options

[ibvr2004]

I have a silly question about Forex Options:

If I buy an one touch option (e.g. EUR/USD trade at or through 1.30 by next Friday).

At the same time, if I buy a Not Touch option (e.g. EUR/USD does not trade at or through 1.30 by next Friday).

Either one of the scenarios will come true. I will have a profit if sum of the premium is less than the money I win. It seems too good to be true, isn't it?

Correct me if I am wrong.

[ERA]

ibvr,

Thats true its just almost impossible to find the two premiums less than the one payout you will get.

An example: The euro is at 1.3452 a the moment using digital binary options,
a 1.35 one touch expiring in 10 days for a payout of $200 costs costs $171, at the same time a 1.35 no touch with the same expiry and payout is $60, for a total of $231, well on my screen anyway. With a max payout of $200, ur in the hole for $31.

[tim_nn]

Originally Posted by ibvr2004

Correct me if I am wrong.

From the way you've worded it, I think you might be looking at BetOnMarkets and confusing "profit" with "return". Did you appreciate that what they call in their terminology the amount "won" includes the return of your stake too? If you take this into account, and calculate accordingly, I think you'll find that it's never possible to make a profit in the way you're suggesting. But please excuse me if I've misunderstood your question!