So it seems bottom line is nothing have the exact one-touch effect. But how about double-one-touch with the barriers posited far out of the market? there will be a little loss if the price stays anywhere between the two barriers and large profit if it touches one of them. So suppose I still want to get an effect as close as possible to that, what should I do then? Perhaps long Strangles\Straddles? But they cause a relatively significant loss if the price stays very near to its current location at expiration, while double-one-touch would result in much less I guess.
It's a path-dependent position; meaning in this case that you cannot hold the position to expiration if the barrier is touched. Whether it's a single or double doesn't change that fact.
The waver of the payout beyond the strike in exotic vis a vis vanilla is a reason for non-replication, correct atty ?
I am intuitively thinking these are being used more and more in the trading world and wonder if they serve any useful purpose?