What do "Double No Touch Odds" mean?

In the context of DNT Options trading (or any type of options trading), "Odds" represent the probability of an outcome happening, as well as the potential payout you can receive based on the trade's outcome.

The odds are a key part of determining the risk-reward ratio for your trade.

Here's how Odds work in DNT (Double No Touch) Options:

• Odds tell you how much you can potentially win compared to your stake if the option expires in your favor.

• Lower odds typically indicate that the event you're betting on is less likely to happen (meaning it’s riskier), but the reward (payout) is higher.

• Higher odds mean the event you're betting on is more likely to happen, but the reward is lower.

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Example with DNT Options:

Imagine you're trading a Double No Touch (DNT) option where:

• The current price of Bitcoin is $30,000.

• You bet that the price will not touch the price levels of $25,000 or $35,000 by the end of the option’s time frame.

If the odds for this bet are 250%, it means if you place a $100 bet you have a 250% likelihood of the options trade not surpassing the upper or lower limits.

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Summary

In short:

• You predict that the price will stay within a certain range.

• You win if the price never touches or exceeds either of the two set price levels.

• The odds (shown on the trading page) tell you how much you could earn relative to your stake, depending on the likelihood of the price staying within the range.

• Lower odds = riskier but higher reward.

• Higher odds = safer but smaller reward.